Business Loans India | Commercial Loans | Small Business Loans | Business Overdraft | Loan For Entrepreneurs | Loan For Self Employed

Business loans is popular loans in both public as well as private sector banks.The main target of a business loans is to help  businessman and traders.These Loans helpful for start or expand their commercial activities.Loans to self employed professions like  CA, Architects, Doctors are also a part of this category.
Types of Business Loans

* Professional Loans
* Trade Loans

Professional Loans:

Leading banks are catering to the need of self employed professionals like Doctors, Chartered accountants, Interior Decorators, Architects, Company Secretary etc. by offering them professional loans at lucrative rates. Manufacturing/ trading/processing units are not eligible for such a loan. These loans are unsecured in nature.
Maximum Amount of Professional Loans Offered:
The amount of loan varies in banks, depending on the financial standing of the customer, his repayment capacity, tenure of the loan etc.

Interest on Professional Loans:
Interest is charged according to the prime lending rate. It can be taken by clients on a fixed or fluctuating basis. Interest can be discounted depending on the customer’s profile and his financial capacity. The interest is generally calculated on the diminishing balance.

Documentations for Professional Loans:

1. Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
2. Address Proof (Ration card Tel/electricity Bill/ Passport )
3. Bank Statements(latest 6 months bank statement /passbook)
4. Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
5. Qualification proof of the highest professional degree
6. Proof of continuation (Trade license /Establishment /Sales Tax certificate)
7. Other Mandatory Documents(Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)

Trade Loans:

Present day trading involves heavy initial investment and pooling in continuous financial resources. Banks are providing trade loans to traders / businessmen to help them set up or expand their business.

Interest on Trade Loans:
Interest is fixed on the basis of prime lending rate. Rate of interest can vary in different banks due to the policies, it can be on fixed or floating rate.

Documentations for Trade Loans:

1. Proof of business existence for at least two years.
2. Financial Statements including Balance Sheet and P/L statement for the last three years
3. Proof of residence
4. Proof of place of business.

collateral Security for Trade Loans:

Some banks require the borrower to furnish collateral security in the form of mortgage of land (not agricultural land) and building.
National Savings Certificates, Government Bonds, Bank’s Term Deposits, Assignment of Life Insurance Policies, approved shares & bonds standing in the name of the borrower/proprietor/partner/director only, are also acceptable as security.