Need To Know When Applying For Business Loans Online

With online loans now available, the matter of applying for small business loans has become quite easier. There is no longer need to submit tons of paperwork and wait for the lenders’ decision. An online business has turned out to be pretty beneficial for the prospective borrowers. It offers them with convenience and hassle-free solutions. The best part about the online business loan is that the loan criteria is quite less stringent than the traditional one.

The world of finance has changed drastically. The banking sector is at the helm of it. Due to this growth, there are many opportunities which have been made available by the lenders. There are various Non-Banking Financial Companies (NBFCs) such as Bajaj Finserv which are offering great loan deals with unique benefits. These financial institutions are empowering businesses to succeed. They are providing them with the support they need to grow and expand themselves.

Need To Know When Applying For Business Loans Online

So how do you apply for a business loan online?

In order to apply for a business loan online, there are several things that you need to keep in mind. These are as follows:

#1 Eligibility

In order to avail a business loan, you need to fulfill the eligibility criteria as set by the lender. An eligibility criterion varies from lender to lender. Even for individuals and firms, the eligibility criteria differ from one another. In order to be eligible for a business loan, you need to be:

  • Self Employed Professional
  • Self Employed Non-Professional
  • Limited Company
  • Private Limited Company
  • Partnership Company

#2 Profiles

Profiles play a major role along with eligibility. The criteria vary as per the detail above. However, one thing is common, and that is the need to submit a proof of qualification.

Self Employed Professionals such as CAs, Architects, Doctors, Company secretaries need to show proof of qualification. Similar goes for the traders, service providers and manufacturers. Finally, entities such as partnership firm, Limited liabilities companies, need to submit documents too.

#3 Documents

Talking about Documents, they play the most crucial part in any loan application. Whether you want a loan for a new business or an existing one, you will need to submit the documents as required by the lender. Some of the key documents include:

  • Application Form: This is available online and should be filled in carefully and honestly.
  • Photograph of the Applicant: In case there is more than 1 applicant, a photograph of each applicant is required.
  • Income Details: Take care to ensure that all the documents needed by your chosen lender are provided or are attached to your online application.

Apart from these documents, you also need to keep in mind another criterion such as age, years of experience, annual income, profit recorded and a minimum turnover of the business. These are the things that you need to keep in mind when you apply for a business loan online.

Categories: Business