What are the typical terms and conditions for manufacturing loans?

Some of the common terms and conditions for manufacturing business loans are:  

Eligibility Criteria

• The applicant/business owner should be an Indian citizen.
• The minimum age required of the  applicant/business owner is typically 18 years. However, for some loan providers, the minimum age requirement is 21 years.
• The manufacturing business should have been operating profitably for at least a year or two.
• The applicant/business owner should have a minimum of 1 year of experience in the same industry field.
• As per CIBIL, typically, a minimum credit score of at least 700 is required. However, lower scores are accepted, provided the applicants/business owners provide some sort of security/collateral.
• It is mandatory to provide the last 3 years' income tax returns (ITRs) of the applicants/business owners.

Documents Required:

• A business plan with financial projections
• An application letter requesting the loan
• A copy of the applicant’s PAN card Documents showing ownership of the business
• ID and address proof documents
• The last 6 months' bank statements of promoters
• A partnership agreement, if the business has partners.
• A certificate of incorporation, in case of  registered businesses.
• A statement of liabilities and assets of promoters