If you are a start-up entrepreneur and want to start your new business, you might feel the need for additional working capital. Alongside the concept, strategy, and execution, one vital aspect of launching a business is working capital. And borrowing a business loan can give a much-needed boost to your business with no effort. If you are seeking how to get a business loan in India, you should consider choosing the best lender for your business loan requirements. Now it’s hassle-free to borrow loans from a lending institution.
Being a small business owner, you can easily apply for a business loan for your entrepreneurial journey with an alternative lender like Indifi. They offer a wide range of financial products alongside EMI facilities to pay back. Their business loan approval process is easy and saves your time and effort.
Nevertheless, every budding entrepreneur should follow some guidelines to prove their business loan eligibility. Let’s check out the top 5 rules every entrepreneur must follow while submitting a business loan application!
File your taxes timely
Many start-up owners are not efficient in tax filing and file taxes of 2 or more years together prior to applying for a business loan. The result will be a direct refusal of your loan application. Every lender needs the last 3 years’ ITR filed earlier due dates of the respective years. So, make sure your tax filings and accounts are responsive and maintained properly while approaching a lender.
Have all documents required for a business loan
Lenders need to see all necessitous documents required for business loan approval. An alternative lender like Indifi approves business loans with no collateral when it sees you are operating a business for at least 2 years. The track record of your business provides them a guarantee of your capacity to repay the loan amount.
Have a well-designed business strategy
Many lenders hesitate to lend the new-age businesses. Hence, if you are a budding entrepreneur, be prepared with a well-drafted business strategy, clarifying the target and object of the organization, accomplishments, and revenue model to impress the lending institutions.
Showcase all incomes in ITR
Many entrepreneurs showcase less income while filing ITR for saving tax. Although cash outflow in terms of mock purchases, ballooned costs, and rental income may help save tax, remember that lenders will issue loans only by pondering the gross income after all operational costs, as shown in the ITR, i.e. for the amount that you paid tax. If you are wondering that projected profit and loss account and your bank statement will showcase all your income flow, you need to think again. Decide the loan amount you want to borrow and check your business loan’s eligibility. You can consult your CA for showcasing real income in the next tax filing and in case it takes time, file tax in advance for presenting it before the lending institution.
Choose the right lender
The terms and conditions decided by every lender are different. Some lenders can give you unpleasant surprises. Some even have penalties in their repayment schedules. So, ensure to choose the right lender while starting your new business. With Indifi, you don’t have to worry about how to get a business loan. They process everything as smooth as possible.
The Bottom Line
So, you can borrow your business loan without hassle if you follow the aforementioned guidelines. Else, there are many reasons to experience rejection. Nevertheless, you need to meet the following business loan eligibility criteria to get a business loan application approval:
- Your age should be between 25-55 years.
- You need to give business operation evidence of at least 2 years.
- You need to showcase the ITR files of at least the past 1 year.
- Make sure to submit all necessitous documents required for a business loan.
Hence, without delaying, understand your business loan requirements and submit your loan application online.