What is the Process and Documents Required to Apply for Business Loan in Mumbai?

What is the Process and Documents Required to Apply for Business Loan in Mumbai?

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There are times when you have to gather funds for your business urgently. The best way to come across such funds is to apply for a business loan in Mumbai. As a matter of fact, you can find several reasons why this may be the best course of action depending on the kind of loan you are asking for. But why?

  • If you are applying for a business loan, then you need not set a collateral asset up to a certain loan amount
  • Since all the work and applications are to be done online nowadays, there is no overwhelming burden of doing lots of paperwork to get a loan approved
  • Getting a loan is a very fast and easy process nowadays since only 72 business hours is needed to successfully business loan in Mumbai and you will get if its approve then the loan amount will be credited in your bank account easily

Now that you understand why getting a business loan is the best way to arrange for funds you are probably thinking about how to get a business loan. Let’s find out

How can an individual get Business Loan in Mumbai?

Well, firstly, you have to fulfil some kind of eligibility criteria set down by the bank to apply for a loan. These include such criteria as having the business running for more than 6 months and having a turnover of more than Rs. 90,000 in the last three months. You have to also ensure that your business or the area your business is located is not blacklisted in any way.

Based on your immediate requirements, there are different kinds of business loans that you can opt for.

  • Short-term loans: These are usually opted for by a business for a short duration and are generally used for payroll financing, short-term expansion, immediate purchase and so on. The loan applicant need not submit any collateral security for the requested loan.
  • Equity Funding: These loans are only availed and approved when you can use the company’s solicitations as collateral. Such loans incur the risk of dilution of your ownership in the company.
  • Credit line: Businesses generally adopt a revolving credit facility which allows business individuals to withdraw some amount. There is a specific threshold of withdrawal and any amount surpassing that is technically considered to be a loan.
  • Asset Finance: This is the kind of loan generally availed by a business looking to purchase new machinery or equipment.
  • Loan on accounts receivable: Such loans require a very high credit score and are sanctioned for accounts receivable to a business.

Documents required to apply for Business Loan in Mumbai

Getting a business loan in Mumbai is no big deal at all nowadays. The entire application can be conducted online. All you need to do is apply with the necessary personal details, details about your business, and financial details. Once submitted, you have to wait for a loan offer from the respective agent.

Below documents that you have to submit when you are applying for a loan:

  • ID proof such as Voter’s ID, Adhaar card, PAN card, or passport
  • Send details about your business such as partnership deeds, certificates of establishment, incorporation, and registration, and company PAN card
  • Send financial details like audited reports, IT returns, balance sheets, VAT returns for the last 2 years, profit and loss statements, and bank statements for the last 6 months

The requirements can vary from payroll financing to external business process, business loans are always safe and secure. Are you looking forward to apply?

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