Eligibility checklist
- Business running for at least one to three years, depending on the lender
- Income tax returns filed for the last two to three years
- Steady or growing turnover and profit
- GST returns filed regularly, if registered
- Healthy credit score for the business and promoters
- Bank account showing regular business transactions
- No recent defaults or bounced EMIs
Documents lenders ask for
| Document | Proprietor | Firm or company |
|---|---|---|
| KYC | PAN, Aadhaar, photo | Entity PAN, deed or incorporation, KYC of partners or directors |
| Business proof | GST, Udyam, shop licence | Same, plus board resolution to borrow |
| Income | ITRs with computation for 2–3 years | ITRs and audited financials for 2–3 years |
| Bank | 6–12 months’ statements | 6–12 months’ statements for all accounts |
| GST | Recent GST returns | Recent GST returns |
| Existing loans | Loan statements and sanction letters | Same |
| Security | Property papers if secured | Same |
Why consistency matters
Lenders compare turnover in your ITR, GST returns and bank credits. Large gaps raise questions. Under-reported income in the ITR limits the loan you can get, because lenders rely on declared income.
How to strengthen your file
- File ITRs and GST returns on time.
- Route business receipts through the business bank account.
- Avoid bounced cheques and late EMIs.
- Check your credit report and correct errors before applying.
- Prepare financial statements and, for larger loans, a project report.
- Apply with one or two lenders that fit your profile rather than many at once.
Government credit guarantee schemes can help eligible MSMEs with Udyam registration get loans without collateral. Check current scheme terms with the lender.
Frequently asked questions
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Sources
Information is for general guidance and not a substitute for professional advice. Rules, rates and due dates change; confirm with us before acting.