Starting and running a small business in India comes with its own set of challenges. Financing is often at the top of this list, and for many entrepreneurs, new small business loans can provide much-needed financial support. If you are wondering how to streamline this daunting process, read on. This guide is intended to help you understand the application process in five straightforward steps.
Step 1: Identify Your Business Needs
First, determine why you need the loan and make a budget for how much you require. Is it for working capital, for business expansion, or to meet short-term financial needs? Once you have a clear objective and a budget in mind, you can move forward with identifying the type of loan that suits your needs. Small ticket business loans can be an ideal way to fund your business’s short and medium-term requirements.
Step 2: Check Eligibility Criteria
Before applying for any loan, it is crucial to know the eligibility criteria. Banks offer loans to self-employed individuals and small enterprises with a minimum business vintage of two years. The applicant must also be at least 25 years old at the time of applying and no older than 70 at loan maturity. Loans greater than Rs. 2 Lakhs require GST documentation.
Step 3: Compile Necessary Documentation
Different banks have different documentation requirements. However, you will generally need:
- Proof of business vintage
- Business and personal financial statements
- GST documentation for loans over Rs. 2 Lakhs
- Identification and age-proof
Step 4: Apply for the Loan
Now you can apply for the loan, either online or offline. Most banks offer a digital loan application process for quick disbursal. Make sure all your documentation is accurate and complete to expedite the process. Any discrepancies or incomplete applications may cause delays.
Step 5: Await Approval and Disbursement
Once your application is submitted, the bank will review it and check whether you meet the eligibility criteria. Upon successful review and approval, the bank will disburse the funds to your business account.
Final Thoughts
Getting a small business loan does not have to be a complicated process. Understanding what you need, meeting the eligibility criteria, and submitting a complete application is key to securing a loan. IndusInd Bank offers a “Small Ticket Business Loan” that provides loan amounts ranging from Rs. 2 Lakhs to Rs. 20 lakhs with a loan tenure of 12 to 36 months, perfect for fulfilling short to medium-term fund requirements. Low rate of interest, low processing fees, and quick and easy application process make IndusInd Bank a smart choice for Indian entrepreneurs.
Apply today and take your business to newer heights with new small business loans from IndusInd Bank.
Also check: What is an SBA Business Plan, Why Should You Have One?
