Large companies and brands can easily get business loans to expand their operations and cover expenses. However, it can be much more challenging for small businesses to secure credit from formal sources like banks. Some factors like collateral, cash flow, credit score, and lack of proper documentation may obstruct the process. Kinara Capital, an RBI-registered fintech NBFC, has come up with a solution for this. The company focuses on providing quick collateral-free loans to MSMEs to kickstart their growth. This essentially means that people will not have to give up their properties or assets as collateral to procure a loan.
In addition to this, at Kinara, we provide fast processing and doorstep customer service and disbursals in just 24 hours. It is a great way for small businesses to grow and expand. We offer loans for machinery purchase and working capital, as well as discounted loans for women entrepreneurs under our HerVikas program. Kinara has very easy and flexible requirements when it comes to eligibility criteria and documents required for business loan, but to optimize your chances of being approved for a loan, you should have a few pieces of paperwork in place. Read on to find out what you need to do to secure a collateral-free business loan for yourself, and which 6 documents can reduce the chances of your loan being rejected.
Taking some steps might help you increase the chances of getting your loan application approved. These include maintaining the cash flow, improving the company’s credit score, and formulating a good business plan. But the most important is gathering and having the required documents for business loans. Keeping these documents handy before your loan process begins also helps the lender process your loan quickly. Here are the 6 essential documents that you should have before applying for a business loan:
You will have to provide proof of the company’s existence. This may be presented as water or electricity bills, Udyam Registration, Company registration, the PAN card of your business, etc.
You need to provide your proof of identity as well. This can be fulfilled by Aadhar card, PAN card (personal), Driver’s License, Passport, etc. Your co-applicant can skip the PAN card if it is unavailable.
These are the most important and common documents for business loans. These include the incorporation certificate, partnership deed, identity/address proof, PAN cards, etc.
Finance-related documents like profit and loss accounts, balance sheets, passbooks, account statements, etc.
Checking bank statements and credit scores is extremely important. However, it is provided for a particular period.
Some more certifications like GST certification and if valid Shops & Establishment Certificate, Trade License Certificate, or Factory Registration Certificate are also important documents for business loans.
Every lender has a process they follow for giving loans. There is a substantial list of eligibility pointers and documents for a business loan that must be fulfilled and presented before the loan is procured. The eligibility criteria for business loan help the NBFCs understand your business and set up parameters within which the process will be carried out. In Kinara’s loan process, the criteria include:
Kinara Capital provides MSMEs with unsecured business loan to help them grow their businesses. Kinara’s loan application process is easy and requires minimal documentation. In fact, you can apply through the end-to-end digital process on the myKinara App and get your business loan online. You can also avail of the doorstep document collection service and contact Kinara to be guided through the application process step by step. Kinara uses AL/ML-led loan decisioning models to ensure that your loan is processed extremely quickly, and disbursed in just 24 hours.
Keep in mind that having all the documents necessary will make sure you don’t have to face rejection for your application. Kinara representatives will help you through the loan application process hassle-free. To apply for business loan, all you have to do is download the myKinara App and get started. So, don’t wait. Begin your journey of growth with Kinara Capital right away!
1. What are the list of documents required for a business loan?
You will need proof of identity, like water or electricity bills, Udyam Registration, Company registration, the PAN card of your business; proof of individual identity, like Aadhar card, PAN card (personal), Driver’s License, Passport; KYC documents like incorporation certificate, partnership deed, identity/address proof, PAN cards; financial documents like profit and loss accounts, balance sheets, passbooks, account statements; bank statements, and any additional certifications.
2. What is the procedure to apply for a business loan?
Kinara Capital has a simple 3-step application process:
Step 1: Download the myKinara App and take a 1-minute eligibility check. You can access the eligibility check in seven different languages for a seamless experience.
Step 2: Screening
The business and the entrepreneur are screened following Kinara’s MSME loan criteria by validating the KYC and registration details.
Step 3: Document Upload
You need to submit your KYC, applicant, co-applicant, business KYC (ID and address proof), applicant PAN Card, business registration document, last 12 months’ bank statements, GST registration (if available), and business vintage proof.
3. Do I need to provide financial statements of my business to apply for a loan?
Yes, you will need to provide the last 12 months’ bank statements in order to apply for a business loan.
