Is a business plan required for a commercial bike loan application?

Usually, submitting a detailed business plan increases the chances of loan approval when applying for financing commercial two-wheelers, such as bikes or scooters, used for business purposes.

A well-drafted business plan helps loan providers like banks and Non-banking Financial Companies (NBFCs) analyse and understand your business better, building confidence in your repayment capabilities.

Key contents of the business plan:

• Executive summary: Brief overview of your business
• Company description: Nature of business, location, assets, etc.
• Market analysis: Your target audience, competitors, market trends
• Organisation and management: Business structure, key promoters
• Products/services: Details of offerings
• Marketing strategy: How you acquire and retain customers
• Financial projections: Past income statements, balance sheets, cash flow statements and future projections
• Funding requirement: The loan amount needed and end usage

Additionally, you need to provide other documents, such as Know Your Customer (KYC), proof of business existence, financial statements, ownership agreements, and collateral.