When fixed income falls short to meet all the rising demands and emergencies, a salaried individual may decide to show some entrepreneurship energy. However, the applicant must be working at MNCs, public companies or any private reputed company. The monthly income of the salaried applicant should be greater than Rs.25,000. If you meet this eligibility criteria you can surely get hold of a business loan. Choose Clix Capital to apply for a small business loan and you can get self-sufficient in a better way. A business loan gives you access to a huge amount of funds that you can use for the betterment of the business. It is an optimal choice to keep your income for expenses, and take a business loan for funding your business. Make sure when you are applying for one, you meet the eligibility criteria and have all the documents in place. India is the third highest in terms of start-up, and the young generation is showing some amazing entrepreneurship skills.
Documentation for business loan
- Filled application form
- Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
- Valid address proof (latest utility bill/ ration card/passport)
- Financial documents: income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof.
- Current year performance and projected turnover on letterhead of the entity
- Proof of identity (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
- Proof of address (latest utility bill/ ration card/passport)
- Proof of income (Salary slip of last 6 months, 6 months bank statement, form 16 of current year)
- All the lease documents (if applicable)
What is a business loan?
A business loan is the type of loan that is offered by the different range of financial institutions to business owners. It is very important for you to get hold of the right eligibility criteria so that it is easy to convince your loan provider. The financial institutions will disburse the entire loan amount at one go and then you can keep the loan repayment covered for years. It is a short-term loan that can be covered within a few years depending upon the return on investment. There is absolutely no need for any kind of collateral as it is an unsecured loan. However a business loan can also be very secured when you purchase any expensive technology or machinery for your business. This becomes an asset and can be used as a security. The eligibility criteria of a business loan is high with a good credit score and income from business. However, if you cannot meet the eligibility you can go ahead and secure your loan with a property or a security. Make sure you keep your documents right so that it does not cause any hassle while you apply for a small business loan.
Business loan eligibility
A good credit score and a good income generation from business plays the most vital role. It will help you get hold of a right loan product at the best low cost. You can easily negotiate for the rate of interest and other charges when you have a good credit score. A score of 750 and above is considered to be a good one for almost all the generalized loan institutions. Apart from the credit score and income, you also need to work on your business stability in the market and get a good business plan. Draft a business plan in such a way that it looks like a source of generating revenue. If it looks promising with meticulous planning, it can convince your business loan provider for an investment. Work on various aspects of your business and make sure you keep your cash flow and cash reserve in a good position. It talks a lot about your business health.
Where to get a business loan from?
The loan industry is growing everyday and not limited or stagnant to traditional banks. Banks are there, but the loan industry has seen a huge rise in the non banking financial institutions. These institutions are working both offline and online mode with an improved experience. It offers unsecured business loans at ease with minimal documentation. Working with experts you can be sure about getting the right loan experience with Clix Capital. From application to approval and finally disbursement you can get all of it within a click, when you choose the right financial services. It gives you the best rate of interest in the market so that the total cost is low. When you compare you will find the maximum business loan applications disbursed from non banking institutions. It gives the best rates and offers loans without any need of collateral.
If you are salaried you can apply small business loan, by meeting the right eligibility criteria. It gives you a good source of income along with your salary. A business loan is very helpful to start something of your own and become self-sufficient.