India is a country full of young and fresh minds. Innovative ideas are produced in this land every hour. From science to arts and literature, every field has rapid growth in the entry of enthusiastic minds.You get to read or hear about new start-up ideas every other day. It is no longer something to wonder about.
When you move ahead to start up a new business, it gives you the freedom to do everything to you. But, before taking the next step, after ideation, the practical approach suggests that you must be ready with the required amount of funds. The start-ups mostly depend on investors for the initial fund to start their business. Other than investors, and private lenders, the business start-ups can also go for loans from different sources that provide secured as well as unsecured business loans for start-ups in India.
Must Read : Do you know how to form a startup company ?
Eligibility for a new business loan in India
For every business loan for a new business, there is a certain requirement that must be met in order to be eligible for the loan.
Any start-up or company looking to expand to ensure the following:
- The applicant for the start-up business financing should be above the age of 21 years and should be below the age of 65 years.
- ID Proof of the individual must be provided in the form of a driver’s license or Aadhaar card.
- Bank statements for the past six months must be procured and presented at the time of loan negotiations.
These are essential to establish the credibility of the individual who is applying for the start-up loans.
Documents required for a new business loan:
- Identity proof: For this, one can present their driving license, passport, PAN card, Voters ID card or even their Aadhaar card.
- Income proof: The bank and financial statement for the last 2 years must be procured.
- Proof of business ownership: It is mandatory to have documents like a Sole Proprietorship Declaration or a certified true copy of Memorandum and Article of Association in order to show proof of the business and/ or start-up for which the loan is being raised.
Read more about the business start-up loans in India:
Government loans for start-ups:
Want to know about the 10 business loans for start-ups and MSMEs by the Indian Government? To know more, Click here
Bajaj Loan opportunities:
With ample opportunities for new businesses, the Start up ecosystem is rapidly booming in India. To support the growth of your Start up, Bajaj Finserv brings to you Start up Loan - Know more
We, at OpenGrowth are constantly looking for trending start-ups in the ecosystem. If you want to know any further information about the start-up ecosystem, then do let us know in the comment section below.
About the Author: Amrita Sinha
Amrita is in the field of media. She has a deep inclination towards writing and public speaking. She has the aim of removing the stereotypical mind-set of society. She loves to read and photography is her passion.