Bihar is one of the most densely-populated states in India and until recent years had been mostly dependent on agriculture. Thanks to economic reforms and access to the latest tools and technology, a lot of businesses are now opening up in this state too, and it has certainly got easier for local residents to open their own businesses.
While Bihar’s economy is still struggling and the GDP of the state is still quite low, business owners can still get a business loan in Bihar for their business and use it for managing the day to day business expenses. There are a lot of financial institutions like Bajaj Finserv which offer working capital loans at attractive term loan interest rates. Business owners can avail of these collateral free term loans to fund the working capital of their business.
Advantages of Taking A Collateral Free Business Loan
- Business Owners can get loans for amounts of up to Rs. 45 lakh for their business
- Flexible repayment tenor of up to 84 months allow business owners to focus on running their business and not be overburdened by Loan EMIs.
- Attractive term loan interest rates that are not a burden on the business owner’s pockets.
- Instant loan-approval within 24 hours with minimum documentation make availing of a business loan the best option to fund your business.
- No hidden policies or charges
Eligibility Criteria for Availing Business Loan
- The business loan applicants must be legal residents of India and between the age of 24-70
- The business loan applicant must own a business that’s been running for a minimum of three years
These are basic eligibility criteria, however the exact list of eligibility might differ from lender to lender. Before we go ahead and talk about how to manage working capital efficiently, let’s first discuss the documents you will need to have with you while applying for a term loan.
Documents Required For A Term Loan
- Identity Proof: Loan applicants must have a valid government issued ID proof such as Aadhar card, Voter ID card, PAN card, Passport, Driving licence etc.
- Proof Of Address: Applicants can use documents like electricity bill, telephone bill, passport, rent agreement, or trade license as address proof while applying for a term loan
- Financial Documents: Loan applicants must also provide financial documents for their business consisting of: a copy of past year’s Income Tax Return, bank account statements for the past 6 months, and balance sheet along with the profit and loss statement of the business for the past two years that has been audited by a registered CA.
- Business Ownership Proof: Loan applicants need to provide a business ownership proof such as registration document of the business, PAN card, electricity bills, proprietor ownership document, partnership agreement, etc., depending on the type of business the business owner owns.
The above-mentioned list of documents is the basic requirement, however the exact list of documents might differ from lender to lender. Hence it is important to go through the website of your preferred lender for a detailed list of eligibility and documents so that you can avoid loan rejections.
After fulfilling the required eligibility and submitting documents, you can get your loan amount approved and credited in your account within 24 hours*. Make sure that you track your expenses and payment receivables properly, and keep a track of the inflow and outflow of funds so that your funds are in order, and you don’t face problems in the future.