A Complete Business Loan Documents Checklist

January 12, 2022

Confused about which business loan documents you need to avail the loan?

Business loans play an important role in the growth and expansion of your business. However, banks or any other financial institutions will not be able to process and approve your business application if the required documents do not support it.

Although there is a standard set of business loan documents asked by all banks, you might need some other important documents along with it depending on your category, business type, etc.

So, without further ado, let’s get to know the complete checklist of business loan documents in this article.  

Common Business Loan Documents Required in All Banks 

Here are the standard documents required for a business loan.

  • Duly Filled Application Form: Fill the form with correct details and attach the passport size photograph as asked on the business loan application form.
  • Identity Proof: PAN card, passport, Voter’s ID card, driving licence, or Market Participation Identification Number (MAPIN) card.
  • Address/Residence Proof: Voter’s ID card, utility bills (electricity, gas, telephone), Aadhaar card, ration card, or lease agreement.
  • Age Proof: Voter’s ID card, PAN card, or passport.
  • Financial Documents: Income Tax Returns (ITR) for the past two years, Chartered Accountant (CA) audited balance sheet and profit and loss statement for the last two financial years, and bank statement for the last six months.
  • Proof of Income: Last two years’ bank statements.
  • Proof of Business Ownership: Business loan documents, such as the declaration of a sole proprietorship, articles of association and certified copy of the memorandum.

Depending on the applicant, their self employed status and company type, the required documents differ. So, let’s check the documents needed for a business loan for self-employed professionals, self-employed non-professionals, women entrepreneurs and Pvt. Ltd. and partnership firms. 

Business Loan Documents for Self-Employed Professionals

Self-employed professionals, such as doctors, builders, dentists, etc., have to submit the following business loan documents to avail of the loan:

  • Sole Proprietorship Identity Proof
  • Individual Identity Proof for the Sole Proprietorship like voter’s ID card, passport, PAN card, or driving licence.
  • Residence Proof for the Sole Proprietorship like ration card, driving licence, passport, or voter’s ID card.
  • Income Tax Returns (ITR) of the last three years, PAN ID of the concerned person or utility bills of the applicant.

Business Loan Documents for Self-Employed Non-Professionals

Below are the business loan documents checklist for self-employed non-professionals:

  • Identity proof of the sole proprietorship
  • Identity proof of the applicant
  • Address proof of the applicant
  • Income Tax Returns (ITR) of the last three years.
  • Sales Tax Returns of the last three years.
  • Copy of periodic stock, creditor statement of the last three months, book-debt (age-wise).
  • Copy of bank statement of the last six months (of the principal banker) or bank statement copy for the previous term loan. 

Business Loan Documents List for Women

As women entrepreneurs are emerging in the country, the financial institutions have started giving out business loans under several schemes for their growth and expansion. Below is a business loan documents list required for women entrepreneurs.

  • Bank statement of the last 12 months.
  • Proof of business registration, including business registration certificate, GST filing, Gumastadhara, drug licence, trade licence, TIN, or VAT registration. 
  • PAN card copies of the proprietor/s.
  • Copy of partnership deed.
  • PAN Card of the company.
  • Identity proof like PAN card, passport, voter’s ID card, driving licence, or Market Participation Identification Number (MAPIN) card.
  • Address proof, including voter’s ID card, electricity bill, gas bill, telephone bill, Aadhaar card, ration card, or lease agreement.
  • Income proof.

Business Loan Documents for Private Ltd. and Partnership Firms

Owners of Private Ltd. and partnership firms need to submit the following business loan documents to avail of the loan:

  • PAN Card
  • Address proof, like voter’s ID card, electricity bill, gas bill, telephone bill, Aadhaar card, ration card, or lease agreement.
  • Last six months bank statement.
  • Income tax returns of the last two years.
  • Chartered Accountant (CA) audited the Balance Sheet of the last two years.
  • Profit and loss statement audited by a Chartered Accountant (CA) for the last two years.
  • Continuation proof, including trade licence, ITR, sales tax certificate, or establishment.
  • Certified copy of partnership/declaration of a sole proprietorship, memorandum certified true copy, original board resolution, and articles of association.

A business loan is not processed until the applicant meets all the document requirements. So, a duly filled application form and the other business loan documents must be submitted to the financial institution for successful business loan processing and quick approval. Hence, keep the documents ready before approaching a business loan.

FAQs

What are the documents needed for business loans for a salaried applicant?

For a salaried individual, identity proof, duly filled application form, income proof, ITR age proof, etc., are some of the documents needed for a business loan.

How to know what business loan amount am I eligible for?

The business loan amount you will get depends on your profile, requirements, CIBIL score, repayment history, ITR, etc.

How to know my eligibility for a business loan?

The eligibility criteria for a business loan are that businesses should make a profit for the last two years and have an annual income of a minimum of ₹ 1.5 lakhs. Also, the minimum age to apply for a business loan is 21 years, while the maximum age is 65 years.

What business loan document is required to submit to the bank?

The essential documents needed for a business loan are identity proof, address proof, ITR for self-employed individuals, salary slips of the last three months for salaried individuals, income proof, etc.

How to apply for a business loan?

You can apply for a business loan either through the financial institution's online portal or by visiting the same in person. Make sure to keep the documents handy while applying for a business loan.

 

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Category:Business Loan

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