Need a loan for business but worried about all the paperwork? Now, you can secure a Business Loan with minimal documentation online. Its minimal documentation requirements facilitate easy and quick approvals. So, you don’t need to hold your business growth due to a lack of finance. Here is everything about securing a Business Loan with minimal documentation.
What is a Business Loan with Minimal Documentation?
A minimal documentation loan requires less paperwork than a traditional Business Loan. The lender will only ask for basic business details and identity proof.
When you apply for a loan for business with minimal documentation requirements, the loan provider focuses more on your credit history than documents. Some loan providers may also check your bank statements and cash flow to approve the loan. This reduces the paperwork, thus saving time in the loan sanction process.
How Does a Business Loan With Minimal Documentation Requirements Work?
If you do not qualify for a traditional loan for business from a financial institution, an NBFC Business Loan with minimal documentation requirements is easily accessible. It secures financing quickly with fewer documents than a conventional loan. Lending institutions only require basic documents like identity and income proofs. Once the lender approves the loan, you can repay it in easy EMIs.
Benefits of Obtaining a Business Loan with Minimal Documentation Requirements
Business Loans with minimal documentation requirements offer several features and benefits. These include the following:
- Minimal Paperwork: Unlike traditional Business Loans, which require heaps of paperwork, these loans streamline the loan process by minimising the formalities. Such a facility provides quick access to the funds without much hassle.
- No Collateral Requirement: Top lending institutions like Hero FinCorp provide collateral-free Business Loans. You don’t need to secure an asset against the loan. No collateral means no documentation regarding the security. It is advantageous for small businesses with no or minimal assets.
- Customised Loan Amount: Unsecured Business Loans with minimal documentation requirements are flexible with their loan amounts. You can customise the loan plan according to your specific needs, and you can borrow the right amount without under- or over-borrowing.
- Flexible Repayment Tenure: Leading loan providers allow you to select a repayment period with affordable EMIs. Use an EMI calculator to choose a repayment plan that aligns with your financial plan and cash flow. It makes repayment easier according to your budget constraints.
- Instant Approval and Quick Disbursal: These loans’ minimal documentation process facilitates instant approval and fast disbursal. Quick funding access lets you capitalise on opportunities without delays.
- No Usage Restrictions: Business Loans with minimal documentation requirements do not restrict how you can use the funds. You can allocate the loan for any business purpose, including business expansion, marketing, inventory, operational costs, etc.
When is a No Documentation Business Loan Beneficial?
A no-documentation Business Loan can be beneficial under various circumstances. Some of them include the following:
- Business Expansion: A Business Loan can help you expand your business without hassle. It can help you hire staff, open a new store, or invest in marketing.
- Purchase Raw Material: Secure a loan to purchase raw materials in bulk. Bulk purchases offer discounts and reduce production costs.
- Bridge Financial Gaps: A Business Loan with no documentation requirements bridges gaps in cash flow. Its immediate funding access supports constant business operations.
- Buy New Equipment: Invest in the latest equipment to stay competitive and boost productivity.
Business Loan Eligibility Criteria
To qualify for a Business Loan with minimal documentation requirements, you must fulfil the following eligibility conditions:
- Citizenship: Most lending institutions offer Business Loans to Indian citizens only.
- Age: The applicant should be at least 25 years old at the time of application and, at most, 65 years old at the end of the term.
- Occupation: Self-employed professionals (architects, CAs, CSs, doctors), self-employed non-professionals (sole proprietors, retailers, traders, manufacturers, service providers), entities (LLPs, PLCs, partnership firms, trusts)
- Work Experience: At least five years in the current business
Documents Required for a Business Loan
You must provide only a few documents to fulfil the Business Loan eligibility criteria. These include the following:
- Duly filled application form
- PAN Card
- Identity Proof (Voter ID Card/ Photo ID issued by GOI/Passport/ Driving Licence/Aadhaar Card or any other government-issued ID proof)
- Address Proof (Aadhaar Card/ Voter ID Card/ Property Tax Receipt/ Driving Licence/ Utility Bill/ Registry Copy/Property Tax Receipt/ Lease or Rent Agreement
- Business Continuity Proof (Certificate of incorporation VAT/ Excise/ Sales Tax/ Service Tax Registration, Trade License/ Copy of partnership deed/ Registration Certificate issued by RBI or SEBI/ Certificate of Practice)
- Signature Proof (Banker’s Verification/ Passport/ PAN Card)
- Income Proof (Latest ITR, GST returns for the financial year, Latest audited financials, Last 6 months bank statement)
- Other Documents (Profit and loss statements, balance sheets, and tax returns for the past few years to showcase your business’s financial performance)
How to Apply for a Business Loan with Minimal Documents?
Follow these steps to apply for a Business Loan with minimal documents:
- Visit the lender’s online Business Loan application page and click Apply Now.
- Fill out the necessary fields.
- Upload the relevant documents.
- Enter the Business Loan amount and select a tenure.
- You will receive a reference number.
- Cater to the queries of the customer representative.
- You will receive a loan offer with the sanctioned loan amount and interest rate.
- The disbursal will take place directly to your bank account.
A Business Loan with minimal documentation requirements is a hassle-free funding option for entrepreneurs. It easily provides the required funding without extensive documentation. Its major advantages include flexible repayment and quick funding. Hero FinCorp offers unsecured loans for businesses with quick approvals and minimal documentation requirements. The interest rates are competitive, and repayment terms are flexible and suitable to your budget.