Most people are eager to start their own business to shine in their life, and it means a lot to them. A start-up business is a new company started by one or more persons and focuses on a particular product or service. To start any business, the person should initially have enough amounts of working capital and financial strength. Money is one of the important foundations for many businesses. If people do not have enough money to start a business, then they can apply for loans and it is one of the best ideas to get money. There are different business loans available for the new organization based on the aim, idea, and nature of the business. It has two major types they are short term working capital loans and long-term loans. The short-term loans help in meeting your daily expenses of the business-like salaries for employees, funds for the daily operation of the business, and the overall cost to run the business. The long-term loans provide support for the growth and expansion of your start-ups and are useful for purchasing inventories and machinery.
Required Document for processing Loan
The basic requirements of getting a start up business loans are as follows,
- Should provide original identify proofs like Aadhar card, Pan Card, Voter’s ID, driving license, or any standard document.
- Should submit the bank account statements for the last six months.
- You must have the original address proofs in your passport, electricity bill, rent agreements, and telephone bills.
- You must give the ITR copy for the duration of a minimum of one year.
- Should submit a proof document of your business ownership registration copy and also the original copies of Article of Association and Memorandum.
- The applicant applying for the business loan must have age criteria above 21 years and below 65 years of age.
- You must submit your signature proof with 2 photocopies.
There are different loans available in different banks, and the applicant should select the correct type of loan that suits them to start the business. Many banks offer low-interest rates for the new business, with many benefits based on the type of business.
- The eligibility criteria may include,
- The person applying for the loan must be a resident citizen of that country.
- The CIBIL score of the applicant should be at least 700.
- Applicant should run the business for at least two years of time.
- The minimum annual turnover and income of the business should be nearly 2 lakhs.
- They must come between the ages of 21 to 65 years.
They give the start-up loans more flexibility, which allows the person to concentrate on the business development and growth rather than worrying about the repayment. They provide the funds required by the applicant as soon as possible, getting no delay. The interest rate of the loans is lesser than other private equity lenders and has the added tax benefit in it. Large banks have special loan schemes for small companies, new start-ups, and other businesses. They do not take share values from that company, and they don’t require the financial history transaction status.