Startup business loan
How to apply for a startup business loan
If you are having a great idea and looking to start a startup or wish to upgrade your existing startup the biggest challenge you must be facing is the operating costs and cash flows. This limits your growth and expansion. As an early startup, most of the financial institutions hesitate to provide funding. Then the one option to get working capital for your startup is a bank loan. The Modi government has come up with a startups schemes to support early stage startups.
As a startup founder, proper financial modelling and solid documentation with a detailed business plan are the basic documents required to plan for funding. These documents should outline the goals and the objectives of the business including a strong financial model that will represent the growth of the startup along with the potential returns. Give a clear estimation of the funds and fund utilisation plans to specify the use of the startup loan in the business plan.
Learn more about “Modi Government Startup Schemes“
Criterias for applying Startup Business Loan
The eligibility criteria to avail startup business loans is different for each industry. The policies may vary from bank to bank. The major/basic criteria is listed below:
- The age of the applicant / startup founder should be more than 21 years and the maximum age should not exceed 65 years.
- The applicant must be a citizen of India.
- The startup needs to submit a financial model and business plan.
Basic Documents Required to apply Startup Business Loan
- Photographs 2 copies (passport-size)
- Proof of Identity PAN Card, Passport, Aadhaar Card, Voter’s ID, Driving License
- Address Proof Passport, Driving License, Aadhaar Card, Postpaid Phone Bill, Voter’s ID
- Age Proof Passport, PAN Card
- Bank Statements Last six months
- Proof of Income Income Tax Returns, Salary Slips,
- Signature Proof Bank verified signature, PAN Card, Passport
- IFSC Code Proof Cancelled/scanned cheque, copy of passbook’s front page of the same bank account
How to Apply for Startup Business Loan?
Some of the ways through which you can apply for a Startup Business Loan are:
- Visit the official website of the lender you wish to avail the loan and apply for it online by filling up the form and submitting the required documents.
- Visit the nearest lender’s branch and submit the loan application form and documents.
- You can also call the lender’s customer care and request for assistance for applying for a startup loan.
Features and Benefits of Startup Business Loan
- No collateral needs to be provided to avail a startup business loan.
- The documentation required for startup business loan is minimal.
- Startup business loans come with easy and flexible repayment tenures.
- The funds are disbursed to the applicant’s bank account directly.
- The interest rate charged by the lender will depend completely on the credit history of the applicant.