6 Documents for Business Loans That Reduce Your Chances of Loan Rejection

April 3, 2023
Updated on

Bigger companies and brands can easily receive business loans. But this can be much more challenging for small businesses. Some factors like collateral, cash flow, credit score and lack of proper documentation may obstruct the process. Kinara Capital has come up with a solution for this. We focus on providing quick collateral-free loans to MSMEs to kickstart the growth. This essentially means that people will not have to give up their properties or assets as collateral to procure a loan. In addition, we provide fast services, with doorstep customer service and disbursals in just 24 hours. It is a great way for small businesses to grow and expand. We offer loans in the form of asset purchase and working capital, as well as discounted loans for women entrepreneurs.

Eligibility criteria for 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 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:

  • Business type should be manufacturing, trading or services.
  • The pin code should be one where Kinara Capital is already offering services.
  • Total monthly turnover should be greater than Rs. 50,000 and less than Rs. 2 crores.
  • The total requested loan amount should be between Rs. 50,000 and Rs. 30 lakhs. 
  • The business should fall under the list of sectors and sub-sectors serviced by Kinara. If it is in the list of exclusions, then it will not be approved.

Grow your MSME with collateral-free business loans

Important documents for business loans:

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. 

The necessary documents can include anything from address proof to a KYC for your business. Keeping these documents handy before your loan process begins also helps the NBFCs process your loan quicker. It also establishes your credibility to the lender. Some general and additional permits and documents for business loans are mentioned below.

Proof Of Identity:

You will have to provide proof of the company’s existence. This may be presented as water or electricity bills, Udhyam Registration, Company registration, the PAN card of your business, etc.

Proof Of Individual Identity:

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 unavailable.

KYC Documents:

These are the most important and common documents for business loans. These include the incorporation certificate, partnership deed, identity/address proof, PAN cards, etc.

Financial documents:

Finance related documents like profit and loss account, balance sheet, passbook, account statement etc.

Bank Statements:

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.

By now you should be well versed in the steps to take to improve your chances of approval when applying for a loan. Having all the documents necessary will make sure you don’t have to face rejection for your application. In addition, these will help you get through the loan application process hassle-free. So, don’t wait. Begin your journey of growth with Kinara Capital right away!

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