How to Get a Small Business Loan in India

Almost every kind of business requires a considerable investment. However, if you don’t have enough funds to cover it then a small business loan can be a really good option. It is safe, and easy to get too.

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If you want a small business loan then follow these steps:

1. Create your business Plan
   This is the first thing your lender will ask you. In fact, it is one of the things that can either nudge them in the right direction or make them toss your application in the bin. Thus, be sure to devise your business plan carefully. It must contain the following: executive summary, company description, financial projections, marketing and sales, market analysis, service or product line details, etc.
2. Reach Out to Your Personal Bank
   One of the biggest advantages of speaking with your personal bank for the business loan is that you already have an established credibility with them. Since they know you and trust you, it won’t be too difficult for them to sanction a loan.
3. Study the Guidelines Carefully
   Every financial institution has its own distinct guidelines for loan applications. So, it’s important that you go through them to see whether you qualify for the loan, or what you need to do if you don’t qualify already. Also check out the interest rates they are offering, etc.
4. Gather Documents
   Most banks and NBFC’s expect the following documents from the loan applicants:
   • ID proof (PAN card, passport, etc.)
   • Address proof
   • Bank statement of past 6 months
   • Statement of computation of income and ITR
   • Ownership proof of office/business facility

   Make sure go compare all your options before finally settling with a bank as the interest rates and T&C vary greatly. Doing your homework in advance can save you a lot of time and help to getthe best deal possible.