A business loan is approved for starting a new company, expanding the current acquisition of assets, etc. Many entrepreneurs don’t understand how to apply for a bank loan, and what the requirements are. Here we clarify the procedures which will help you get a bank loan. 

How to get a business loan?

Documents needed to get a Business Loan

You should arrange the mentioned documents before approaching a bank

KYC documents

Your Identification Details. Please take PAN, AADHAR, Election ID, Ration Card, Driving License, etc. You should also probably take 3 photocopies of each of the same (preferably Aadhar and PAN)

Company registration details

Your company identification details such as registration information that it already runs or will launch a new one.

To receive a loan you will complete the application process. MOA / AOA, Partnership Agreement, Panchayat / Municipality / Corporation Registration Information, Licenses issued for your company, such as FSSAI, pollution, boiler licenses, etc., which are required for your company. Rent agreement, (if applicable) registration of GST, etc.

Project report

You will have a project plan that will clearly illustrate the specifics of your business and why you need the money, how you can repay loans, your position and maintenance facilities, expected profitability, the balance sheet for the next 3-5 years, etc.

Sharda Associates will help you get a loan by producing a comprehensive project report.


To apply for the loan you will be carrying your photo. When it is a group of people then take photos of all the stakeholders.

Source of capital

The bank can issue just 75 percent of the overall cost of the project, the developer will pay 25 percent of the money generally known as margin money. Often, the specifics of the margin money must be sent. Eg: Friends / Family Fund etc.

Personal Credit score

This is a history of the past bank loans, financial obligations, etc., and how capable you are in repaying it. This is generally called the CIBIL score, Experian score, etc.

You don’t need to carry this, the bank can use your Aadhar information to sort that out. You can also review the credit score free of charge from civil.

Due diligence certificate

It is a paper which the bank manager has compiled by reviewing the information from other entrepreneurs or from society. This will document your history, experience, etc.