Know how much you need
Prepare a simple use-of-funds plan for stock, equipment, or working capital.
Business finance
Business Loan
Check business loan options for working capital, stock, equipment, or business growth.
Before you start
Business Loan Eligibility and Document Guide
Lenders commonly check business age, turnover, profit, bank activity, tax records, and credit history.
Important before you apply
Key points to consider for Business Loan
Check these points carefully before choosing an option or starting your application.
Keep records updated
Current bank statements, ITR, GST, and business proofs can reduce delay.
Protect business cash flow
Select an EMI that the business can pay even in a slower month.
24 eligibility points
Eligibility Criteria
See the basic conditions normally checked before you can apply.
Eligibility Criteria - Indian Market Baseline
Eligible applicant types (lender-dependent)
- Self-employed individual / proprietor
- Partnership firm
- LLP
- Private/public limited company
- Professional practice
- HUF / trust / society only where lender permits
Promoter/applicant
- Minimum age commonly 21 years.
- Maximum age at loan maturity commonly around 60-65 for proprietor/promoter-led products.
Business vintage
- Typical market range: minimum 2-3 years in business.
- Some products may require 3+ years.
- Start-ups without operating history usually need a separate startup/government scheme rather than standard unsecured business-loan underwriting.
Credit
- Example lender minimums are around 650-675; 700+ is a stronger multi-lender matching threshold.
- Proprietor/promoter bureau history and business bureau history may both be reviewed.
Business performance
- Stable/regular banking.
- Consistent turnover and preferably upward trend.
- Profitability / positive cash flow.
- Adequate repayment capacity after existing obligations.
- GST/ITR/financials should be consistent with bank credits and declared turnover.
- Industry, geography and negative-sector policy can affect eligibility.
32 document points
Document Requirements
Check which clear and valid documents you should keep ready.
Document Requirements
KYC
- PAN of applicant/promoter and business/entity where applicable
- OVD identity/address proof
- Registered office / business-address proof
Business constitution / ownership
Proprietorship
- GST / Udyam / Shop & Establishment / trade licence / business registration
- Sole-proprietorship declaration where requested
Partnership
- Partnership deed
- Firm PAN / GST
- KYC of partners
- Authority letter / borrowing authorisation, where required
LLP / Company
- Certificate of incorporation
- LLP Agreement OR Memorandum & Articles, as applicable
- PAN / GST
- KYC of directors/designated partners/beneficial owners as required
- Board resolution / borrowing authorisation, where required
- Shareholding/director details, if requested
Financial
- ITRs and computation of income, commonly last 2 years; some lenders ask 2-3 years
- Audited Balance Sheet and Profit & Loss, commonly last 2 years; sometimes 3 years
- Tax audit report, where applicable
- GST returns / GST statements, commonly last 6-12 months
- Current-account / business-bank statements, commonly last 6-12 months
- Existing loan / OD / CC statements
- Debtor/creditor or stock statements if lender's program requires
Other
- Business profile / purpose of loan
- Proforma invoices / quotations if end-use verification is needed
- Additional collateral documents ONLY if the product is secured
Simple steps
Get a business loan in three steps
Follow these three simple steps.
Check your eligibility
Review the income, age, credit, and document points for a business loan.
Compare current options
Check the available lender options, total cost, EMI, and important terms.
Apply and track
Continue in your secure account and follow every application update.
Reference Basis
These public sources were checked for this guide. Rules can change, so open the source for the latest official information.