Are you looking for a business loan at lower interest rates? Do you want that financial boost for your company to reach new heights? Everybody is aware of the point that innovation requires resources and to fulfill the requirements of resources, a business loan can be the catalyst for turning your creative ideas into reality.
In this blog, you will learn about business loan meaning.The eligibility criteria for business loan plays a pivotal role too. Also, you will learn about business loan documents that you need in order to qualify for a business loan. Learn about all the requirements to apply for business loan.
What is a Business Loan?
The business loan meaning is a loan that is offered to entrepreneurs who are running a company and need external financial resources for operations. Businesses can cover expenses such as employee salaries, rent, buying pieces of equipment, or expanding the business with the help of business loans. The credit score and business turnover indicate the creditworthiness of the business owner. The business loan can only be used to cover business expenses and not personal expenditures. Apply for a business loan here.
Business Loan Eligibility Criteria
Now, you must be wondering if you are eligible for a business loan or not. You should be aware of the business loan eligibility criteria before applying for a business loan. Here are some important points that make you eligible for a loan:
- The first thing in the business loan eligibility parameter is that the minimum age of the borrower should be 18 years. It can also depend on the financial institutions.
- Self-employed professionals and self-employed non-professionals, both can apply for business loan.
- The business must be operating for more than six months from the time of application.
- The minimum turnover of the business should be Rs. 90,000 in the last three months from the time of application.
- The business location should not be in the blacklisted area or a negative area.
- If you have a charitable organization, NGO, or trust then you are not eligible for a business loan.
Documents You Need for Business Loan
If you have checked your business loan eligibility and now you are planning to apply for business loan, you will need to prepare some documents for that. It mostly depends on the financial institutions but here are some common business loan documents you will need:
- PAN Card, Aadhar Card, Passport, or any other identity proof.
- Passport-sized photographs of the person who is applying for the business loan.
- Address proof of the company.
- Memorandum of Association (MOA) and Article of Association (AOA) of the company.
- Proof of GST registration
- Sales Tax Certificate
- Financial documents attested by a Chartered Accountant
- Profit and Loss account statements and balance sheets of the company are also
- needed by the financial institutions.
- Bank statement of the applicant and the company
How to Calculate Business Loan EMI?
A business loan EMI is the monthly payment of the business loan that you have taken from a financial institution or bank. Business loan EMI can be easily computed by a business loan EMI calculator. Here are some simple steps that can help you calculate your business loan EMI. Enter the loan details like the loan amount that you want to lend, the interest rate, and the loan tenure as your preference. The calculator will automatically compute your monthly business loan EMI.
Business Loan for Women Entrepreneurs
In recent years, many women ventured into entrepreneurship. Women are contributing to the global business landscape by creating innovative businesses and driving economic growth. To foster businesswomen, many financial institutions and government agencies have introduced specialized programs for them.
Some government business loan schemes for women entrepreneurs are Cent Kalyani from the Central Bank of India, Mudra Loan under PMMY, ICICI Bank-self help group- Bank Linkage Programme (SBLP), Stand-up India, PNB Mahila Udyami, and many more. Women can take business loans to bring their business to new heights.
A business loan is essential for any business to grow and achieve success. Applying for a business loan can be a hassle, but when you know what is the business loan eligibility and business loan document you need in order to apply for business loan, then it is a cakewalk for you. There are many financial institutions that provide business loans at lower rates. Also, there are many business loan for women provided by government agencies to grow their business.