The short answer
Every business loan needs three sets of documents: who you are, that the business exists, and what it earns. The financial set does most of the work — twelve months of bank statements, two years of ITRs with financials, and GST returns.
Who you are
PAN and Aadhaar. Identity, and the link to your credit record. Names should match between them — a mismatch means a delay while it is explained.
Address proof. Electricity bill, rent agreement, passport or voter ID. It has to match the address on the application. Using an old address because that is the bill you can find is a false economy.
That the business exists
GST registration certificate. Proves registration and, usefully, the date of it — which often establishes vintage.
Udyam or MSME registration. Free, takes a day, and worth having even if nobody has asked.
Business address proof. Utility bill, rent agreement, trade licence or shop and establishment certificate — showing the business operates where you say it does.
Constitution documents. Partnership deed for a firm; LLP agreement and incorporation certificate for an LLP; certificate of incorporation, MOA, AOA and board resolution for a company.
What it earns
Bank statements, twelve months, every current account. The most important document in the file. Download the PDF from net banking — scanned printouts are frequently rejected. Do not omit an account, and do not remove pages.
Income tax returns, two years, with computation. Filed returns with the acknowledgement. An unfiled or late return will hold everything up.
Financial statements, two years. Profit and loss account and balance sheet. Audited where audit applies; for a small proprietorship the computation attached to the ITR is often enough.
GST returns, twelve months. Your GSTR-3B filings — the monthly summary. Lenders compare these against bank credits.
Existing loan sanction letters and statements. Disclose everything. It is on the credit report anyway, and volunteering it reads far better than having it discovered.
The three mistakes that cost the most time
- Bank statements in the wrong format. Costs a week, every time.
- Addresses that disagree across documents. Spend an afternoon on this first.
- An undisclosed existing loan. Damages the file in a way that is hard to recover from.
Free, and it does not ask for your phone number.
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