What documentation is required to apply for a business term loan?

When applying for a business term loan, you will need to submit certain documents to the lending institutions to support your loan application. Here is an overview of the key documents that are generally required:

• PAN Card: This is mandatory for the company/firm/individual applying for the loan. The PAN card establishes functioning and operations of the business.
• Identity Proof: You need to submit a copy of your Aadhaar Card, Passport, Voter's ID or Driving Licence as identity proof.
• Address Proof: Submit a copy of Aadhaar Card, Passport, Voter's ID, Driving Licence or bank statement of last 6 months as proof of your business' address.
• Latest ITR: The last 2 years of Income Tax Returns (ITRs) need to be submitted along with computation of income, balance sheets and profit/loss statements certified by a CA/auditor. This shows the financial performance of your business.
• Proof of Continuation: Submit ITR, trade licence, and establishment/sales tax certificate as proof that your business is operational.
• Business Registration Docs: For sole proprietorship, submit a declaration; for partnerships, a certified copy of the partnership deed; and for companies, certified copies of the Memorandum & Articles of Association and Board Resolution authorising the loan application.
• Know Your Customer (KYC) Documents: Submit identity and address proof documents like Aadhaar, Passport, Voter's ID, Driving Licence for all promoters/partners/directors of the business.
• Other References: Provide any other documents like bank account statements, and business references, that may be requested by the loan provider during loan evaluation.