How to take business loan?

What is Business Loan?

business loan i.e. ‘Business Loan’ which is specifically taken for fulfilling business purposes, like if you want to start a shop, retail and wholesale shop, distributorship and any other type of business or to finance your already running business. If you want to invest more in business and for this you have shortage of money, then you can fulfill this need of money by taking loan.

This fund going for business Business Loan say when someone business loan When you take a loan, it is a type of loan that requires you to pay back the principal amount along with interest at a specified rate of interest.

What are the benefits of taking a business loan?

Loan can be taken to fulfill many business objectives related to a business like-

⋆ To increase the cash flow of the business
⋆ For Technical Upgradation
⋆ To buy new equipment for business
⋆ To grow inventory or stock
⋆ To hire seasonal workers
⋆ To purchase raw material for large orders
⋆ To expand business to another city
⋆ To work on a new task in business

Where to get business loan?

Business loan should be taken keeping in mind the needs of the business, for this the business loan is divided on the basis of 3 factors –

1. Business loan under government scheme
2. Bank Loan
3. women entrepreneurs business loan scheme for

government loan schemes

In the last few years, the Micro, Small and Medium Enterprises business sector has proved to be the most dynamic sector of the Indian economy, also known as MSME (Ministry of Micro, Small and Medium Enterprises) and belongs to the Government of India which supports the existing enterprises with the co-operation of several departments, state governments and stock holders and helps new enterprises to grow.

MSME provides business loans to Micro and Small Enterprises through several schemes such as – Credit Guarantee Fund Scheme and Coir Udyami Yojana.

Many schemes have been made by the Government of India to promote small business and new startups, through which any entrepreneur can take a loan, many such schemes are as follows –

1. MUDRA Loan Scheme – Mudra Loan Scheme
2. Stand Up India Scheme – Stand Up India Scheme
3. Coir Udyami Yojana – Coir Entrepreneur Scheme
4. Bank Credit Facilitation Scheme – Bank Credit Facility Scheme
5. Market Development Assistance Scheme for MSMEs
6. National Bank for Agriculture and Rural Development – ​​NABARD

Bank loan

Various types of business loans are provided by banks for entrepreneurs in India, such as

1. Term Loan – Term / term loan
2. Working Capital Loan – Working Capital Loan
3. Start-up Loan – Start-up loan
4. Invoice Financing
5. Equipment Financing
6. Overdraft
7. Business Loan for Women – Business loan for women

Women Entrepreneur Business Loan Schemes

There are many loan schemes especially for women to start their own business and to grow the already running business as follows –

1. Dena Shakti Scheme – Dena Shakti Scheme
2. Udyogini Scheme – Udyogini Scheme
3. Cent Kalyani Scheme – Cent Kalyani Scheme
4. Mahila Udyam Nidhi Scheme – Women Enterprise Fund Scheme
5. Bharatiya Mahila Bank Business Loan
6. Stree Shakti Package For Women Entrepreneurs
7. Annapurna Scheme – Annapurna Scheme

What is the eligibility criteria/qualification for availing a business loan?

any under government loan scheme The eligibility criteria for taking a loan for your business are as follows –

Eligibility for Credit Guarantee Loan Scheme – This scheme is available for both new and old MSMEs (Micro and Small Enterprises) who are engaged in any manufacturing and services business.

Mudra Loan Scheme Eligibility

All types of manufacturing, trading and service sector units will be covered under this scheme. Loan Can be found, non-corporate small businesses including proprietorship or partnership firms in rural and urban areas can apply for loans under this scheme, such as –

• service sector units shopkeepers
• fruit and vegetable seller
• truck operator
• Foodservice Units
• repair shops
• machine operator
• small industry
• food processor

Eligibility for Stand-up India Scheme

Business enterprises engaged in manufacturing, trading and service sector, in addition to partnership enterprises in which at least 51% of the shareholding and controlling stake is held by an SC/ST or women entrepreneur and the borrower is eligible from any bank / There is no default in payment with the loan company, he can get a loan under this scheme.

Coir Udyami Yojana Scheme Eligibility

All jute processing MSME startups who are registered under Coir Board under Jute Industry Registration Rules, 2008 can avail loan under this loan scheme, but who have already availed this facility under any government subsidy or other government scheme. Yes, he cannot apply for this scheme.

any Under the loan scheme of the bank The eligibility criteria for taking a loan for your business are as follows –

• Self-employed businessman and professionals can take bank loan
• Ltd. and private limited company can get bank loan
• Manufacturers, retailers and service providers can also take loans
• The age of the loan applicant should be between 21 to 65 years
• The business should be in existence for at least 3 years
• The business should be making profit for the last 2 years
• The turnover of the business should be around 40 to 50 lakhs annually
• Minimum profit should be from 1 to 2 lakhs

any Women Entrepreneur Loan Scheme The eligibility criteria for taking a loan for your business under this are as follows –

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What documents are required for business loan?

There are a number of documents required to avail a loan, which depend on the loan scheme and the source of the loan, such as –

1. Documents required for taking loan under government scheme

• GST Number (GST Details)
• Income tax information for last 3-5 years
• Bank statement of last 6 months
• Details of the type of loan you want to take
• Information of Directors & Partners of the Company/Partnership Firm
• Personal ID, Address Proof, Premises Proof, Aadhaar Number etc. for e-KYC.

2. Documents required for taking loan from the bank

• ITR details
• Bank Statement
• proof of business
• certificate of practice
• Latest photograph of the applicant
• Identity Proof – Aadhar Card & Voter ID Card
• PAN Card (PAN Number)
• company registration certificate
• Address proof
• Sole Proprietor Declaration
• Partnership deed copy
• Copy of Memorandum and Articles of Association

3. Documents required for taking loan under Women Entrepreneur Scheme

• Identity Proof – Aadhaar Card, Driving License, Voter ID Card, Passport,
• Address Proof – Ration Card, Aadhaar Card and Passport
• Residence Proof – Utility Bill, Landline Bill, Water Bill
• Income Proof – Bank Statement
• Financial Documents – ITRProfit/Loss Details, Balance Sheet
• Business Ownership – Partnership Deed, Sole Proprietor Deed, Articles of Association, Memorandum of Association copy for Partnership Business

How to apply for business loan?

You can apply for a business loan from a bank through both online and offline methods, if the bank allows you for online loan If it gives the facility, then first of all you should get complete information by visiting their website.

And, then fill all the important information in the application form i.e. application form, and then submit, someone calls you from the customer service team of the bank, then put your form for verification and then if the eligibility required for the loan matches So your loan will be approved and you will get the loan amount in a few days.

To get loan from bank offline

1. First of all visit the branch of the bank and get the application form
2. Fill out the application form, attest the form and submit all the required documents
3. After that the bank will verify all your documents
4. If the loan eligibility criteria are matched, the loan will be approved
5. Then in a few days you will get the loan

if you any loan under government scheme If you want to take then follow the steps given below –

1. Go to the online website of the loan scheme from which you want to take a loan
2. Register and login to the website
3. Forward to the terms and conditions of the scheme
4. Fill in your financial credentials and other required details
5. Then proceed further and upload the forms and documents
6. Now after verification the loan will be approved

Business loan interest rate depends on the annual turnover of your business, how long the business has been running, how much loan amount has been applied for, the ability to repay the loan etc. i.e. the higher the loan amount , the lower the interest rate.

Documents required to start business