Documents Required for Business Loans - Complete Checklist

It is possible to manage the cash flow, upgrade business equipment and grow the business by the option of business loans. Each bank has specific requirements, criteria and eligibility factors. Here is the list of few banks document requirements and other details mentioned.

To avail a business loan, an applicant needs to provide the following documents as per the lender's requirements.

• Identity Proof: Driving License / PAN Card / Passport / Voters ID Card / Aadhaar Card.
• Address Proof: Ration Card /Telephone Bill / Electricity Bill / Passport / Trade license / Lease agreement / Sales Tax certificate.
• Income Proof: Bank Statement of Last 2 Years.
• Financial Documents: Last 2 Years ITR along with computation of Balance Sheet, income & Profit & Loss a/c for the last 2 yrs.
• Proof of Business Continuation
• Business Ownership[ Proof: Other Mandatory Documents such as Sole Proprietorship Declaration, Certified true copy of Memorandum & Articles of Association
• Last 3 years audited financials.

Here is a list of documents that are commonly required by all the business loan lenders.

• Application Form: Complete loan application form with one passport size photograph
• Valid Proof of Applicant's Identity: Passport, Photo PAN card, Voter’s identity card , Driving license and MAPIN card
• Proof of Residence: Ration card/Telephone Bill/ Lease agreement/ Electricity Bill/ Passport/Trade license /Sales Tax certificate
• Proof of Age: Passport, Photo PAN card, Voter’s identity card
• Financial Documents: Copies of IT returns for the last two years along with the latest Bank statements for 6 months and P & L and balance sheet for last two years audited by a C.A.
1. Self Employed (Private Ltd. Co. and Partnership Firms): P & L Copies of IT returns for the last two years and P & L and balance sheet for last two years audited by a chartered accountant.
2. Self Employed Individuals - Professionals: Copies of IT returns for the last two years and Bank statements for last 6 months and – Professionals: P & L and balance sheet for last two years audited by a chartered accountant
3. Self Employed Individuals - Non Professionals: P & L and balance sheet for last two years audited by a chartered accountant and Copies of IT returns for the last two years and Bank statements

• Proof of Identity of Private Limited Company: Sales tax / VAT /Service tax / Excise registration, / IT return of the concern, Water / Electricity / Registration under Shops and Establishment Act, PAN ID /Municipal tax bill in the name of the concern, Memorandum and Articles of Association
• Proof of Individual Identity: Proof to be submitted for the authorized signatories and about two directors (which includes the managing director) (any one of the following): PAN card, Voter’s identity card, Driving license and Passport

• Proof of Identity of Sole Proprietorship: Proof of identity of the sole proprietorship
• PAN ID / IT return of the concern or Municipal tax, Water, Electricity bill in the name of the concern
• Individual identity proof to be submitted for the Sole Proprietor: Passport, Driving license, Voter’s identity card, Photo PAN card.
• Proof of residence address for the Sole Proprietor: Driving license, Ration card, Passport, Voter’s identity card

• Proof of identity of the sole proprietorship
• Proof of individual identity
• Three years income tax returns
• Three years sales tax returns
• Copy of periodic stock, age wise book-debt and creditors-statement for latest three months
• Copy of last 6 months bank statement of main banker / copy of bank statement for the term loan

Business Loan Application Form is a mandatory document to be filled, it is clear that irrespective of which bank you are look to apply for a business loan, without necessary documentation the request will not be process. Keep these paper works done before approaching the bank.