Do I need a specific type of business structure to qualify?

Generally, the type of business structure is important in determining eligibility for a business loan. Most financial institutions consider various business structures to ensure they align with their lending criteria. Below are typical considerations:

1. Eligible Business Structures

• Financial institutions generally offer business loans to proprietorships, partnerships, private limited companies, public limited companies, and Limited Liability Partnerships (LLPs).

2. Operational History

• Irrespective of structure, the business is typically required to be operational for at least 3 years to qualify for a loan.

3. Documentation Needs

While specific documentation may vary slightly, most structures need to provide:

• Business registration proof
• PAN card
• Financial statements
• Bank account statements

4. Assessment Criteria

More than structure, loan providers focus on factors like:

• Business stability and cash flows
• Revenue and profitability
• Credit history
• Legal standing
• Flexible approval

Loans can be approved for most structures as long as other eligibility criteria regarding finances, collateral, and creditworthiness are met.