Running a business require management skills and financial discipline is most important skill. Every business at some point of time require financing from external sources. If you need a loan from bank, here is complete procedure.
You can approach any bank for a business loan. Either you can approach under government schemes such as Mudra or PMCGS or for bank schemes. Every bank either offer collateral loan or without any collateral. Interest rate differs in case of collateral or non-collateral loans. Some banks even require a guarantor to provide loan. You can also transfer your loan from one bank to another and process adopted by banks in case of transfer is similar to providing a new loan.
Every bank has a similar process to accept and process loan applications. Documents are sent to credit analysis department and credit analysis department scrutinise documents to validate loan sanction.
Documents required for taking business loan from bank are:
You can provide one the following documents for identity proof.
You can provide any one of the below documents for address proof.
You should provide following documents for taking loan from a bank.
You need to provide proof that you are running a business. You should provide below documents to prove a running business.
Business viability report is a report that explains performance of business over a period of time. Project report is required for obtaining any business loan. You need to prepare project report to establish that business is capable of repaying the loan and interest amount.
A project report or CMA report should have projected balance sheet, profit and loss statement, cash flow statement and ratios such as current ratio, DSCR.
Generate Accurate and globally accepted project report for financing