Eligibility Criteria

Business Loan is not the only source for small business loans. State and local economic development agencies and numerous non-profit organizations provide low-interest loans to small business owners who may not qualify for traditional commercial loans.

While every loan program has specific forms you need to fill out and documents you need to submit, you will likely need to submit the same information for different loan packages.

Before you start applying for loans, you should get some basic documentation together. The following are typical items for any small business loan application:

You and your lender should review this checklist to ensure all documentation is included.

      1. Loan Application (Application Form)This form should be completed by you, the business owner.
        Forms vary by program and lending institution, but they all ask for the same information. You should be prepared to answer the following questions. It’s a good idea to have this information prepared before you fill out the application:

          Why are you applying for this loan?

    How will the loan proceeds be used? What assets need to be purchased, and who are your suppliers? What other business debt do you have, and who are your creditors? Who are the members of your management team?

Personal Background (Statement of Personal History)

Either as part of the loan application or as a separate document, you will likely need to provide some personal background information, including previous addresses, names used, criminal record, educational background, etc.

Resumes

Personal Resume including business experience of each principal.

Some lenders require evidence of management or business experience, particularly for loans that can be used to start a new business.

    1. Personal Credit ReportYour lender will obtain your personal credit report as part of the application process. However, you should obtain a credit report from all three major consumer credit rating agencies before submitting a loan application to the lender. Inaccuracies and blemishes on your credit report can hurt your chances of getting a loan approved. It’s critical you try to clear these up before beginning the application process.
    2. Personal Financial Statement (Personal Financial Statement)Signed Personal Income Tax Returns of principals for previous three (3) years and One (01) years Bank Statements.

Business Credit Report

If you are already in business, you should be prepared to submit a credit report for your business. As with the personal credit report, it is important to review your business’ credit report before beginning the application process.

Business Financial Statements

Many loan programs require owners with more than a 20% stake in your business to submit signed personal financial statements.

You may also be required to provide projected financial statements either as part of, or separate from your business plan. It is a good idea to have these prepared and ready in case a program for which you are applying requires these documents to be submitted individual.

The following forms may be used to prepare your projected financial statements:

      • Balance Sheet Income Statement Cash Flow

a. Current Balance Sheet and Profit & Loss Statement of business to be purchased.
b. Previous two (2) years Federal Income Tax Returns of the business.
c. Propose Bill of Sale Including: Terms of Sale.
d. Asking Price with schedule of:

1. Inventory
2. Machinery & Equipment
3. Furniture & Fixtures

 

Detailed, signed Balance Sheet and Profit & Loss. Statements current (within 90 days of application) and last three (3) fiscal years Supplementary Schedules required on Current Financial Statements.

    1. Bank StatementsRequire one year of personal and business bank statements to be submitted.
    2. Projected Financial StatementsDetailed one (1) year projection of Income & Finances (please attach written explanation as to how you expect to achieve same).

Ownership and Affiliations

A list of names and addresses of any subsidiaries and affiliates, including concerns in which the applicant holds a controlling (but not necessarily a majority) interest and other concerns that may be affiliated by stock ownership, franchise, proposed merger or otherwise with the applicant.

    1. Business Certificate / LicenseCertificate of Doing Business (If a corporation, stamp corporate seal).

Accounts Receivable and Accounts Payable

Most loan programs require details of a business’ most current financial position. Before you begin the loan application process, make sure you have accounts receivable and accounts payable.

Hence, acquiring more capital in order to promote any business or consolidating old debts and credits, beckons the call for Business loans.

The applicant must meet the below eligibility criteria’s
1. Minimum Age:21 Years
2. Maximum Age:65 Years
3. Minimum Income (Annual):Rs. 5,00,000/-
4. Minimum Loan Amount:Rs. 10,00,000/-
5. Maximum Loan Amount:Rs. 2,00,00,000/-
6. Minimum Loan Tenure:01 Years
7. Maximum Loan Tenure:05 Years
8. Minimum Years of Business Existence:03 Years.