How to Get Instant Small Business Loans in Hyderabad?

Hyderabad is a thriving hub for the pharmaceutical and information technology sector, and a well-known center for major capital infusion in other sectors as well. For instance, almost Rs.20,000 crore investment has happened in the city to improve civic infrastructure in the urban local bodies of Telangana.

Such development has the potential to give rise to multiple business opportunities. For entrepreneurs to take advantage of the city’s growth opportunity, commercial lenders also offer tailor-made business loans in Hyderabad, which can be availed to bridge any monetary gap.

Criteria for the application of business loan 

Like any other city, business loans here are offered to sole proprietors, partnership firms, limited liability partnerships, or companies. Such loans would keep your business financially healthy.

The difference in all these business entities is related to the liability of the business owners and associated bodies, among others. The eligibility criteria include –

• Age of applicant: An applicant for business loans in Hyderabad must be between 25 years to 55 years.

• Business vintage: The particular business must be running for a minimum of 3 years.

• Filing of Income Tax Returns: The business’s Income Tax Returns must be filed for at least 1 year.

Among the checklist for a business loan application, lenders also look for a good credit score. A CIBIL score of 750 and higher is considered a good credit score. The closer such score is to 900, the higher the chances of loan approval.

Based on these simple eligibility criteria, self-employed professionals, self-employed non-professionals, and any other business entity may avail of unsecured business loans of up to Rs.20 lakh. Such loans are also customized to meet the unique needs of a business. For instance, according to their financial requirement, one may avail Working capital loans, Machinery loans, or MSME loans.

Application process of micro business loans in Hyderabad 

The application process for micro business loans is quite simple –

Step I: Fill up the online application form of a business loan with the necessary detail.

Step II: Attach all the relevant documents to complete the application process.

If no discrepancy is found in the application, the loan amount would be credited in the borrower’s account within 24 hours.

Moreover, prominent NBFCs such as Bajaj Finserv extend pre-approved offers for further simplification of the application process. You can check your pre-approved offer by submitting essential details.

Mandatory documents needed for business loan application 

There is minimal documentation involved for a business loan. The following documents are required to successfully apply for a loan.

1. Identity proof: Identification proof has to be provided with appropriate KYC documents like Voter ID, Aadhaar card, Passport, PAN card, driving license, or any other similar document issued by relevant government authority.
2. Address proof: Apart from KYC documents, ration card, telephone bill, electricity bill, passport, trade license, lease agreement would suffice as address proof while applying for business loans in Hyderabad.
3. Financial documents: Some of the common financial documents to be submitted by both self-employed professionals and non-professionals include –

• Bank account statement for the last 6 months.
• Copy of ITR filed for a minimum of 1 year.
• Profit & Loss Statement and Balance Sheet audited by a Chartered Accountant for previous 2 years.

  4. Business ownership proof: The proof of business ownership is dependent on the profile of an applicant as well as the type of business. Here are some of the documents required –

• For Private Limited Companies and Partnerships: In the case of Private Limited Companies, a Memorandum of Association, Articles of Association are required. For partnership firms, a partnership agreement has to be submitted. Other documents include returns of GST, Income tax, registration certificate under Shops and Establishment Act etc.

• For professionals (self-employed): Sole proprietors need to submit registration documents. Other documents include, IT returns, electricity bill, receipt of municipal tax etc.

• For non-professionals (self-employed): Sole proprietors’ registration document has to be submitted. Apart from individual identity proof of the owner, bank statements for the last 6 months, IT Return, GST Return, statement of creditor etc. have to be submitted.

It becomes apparent that availing a business loan in Hyderabad has become quite easier in the present times. However, to ensure that a loan application is approved in the first instance, borrowers must diligently follow the application process.