Secrets of Faster Approval of Business Loan
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Secrets of Faster Approval of Business Loan

  • Highlights

  • Understand the loan application process

  • Make a realistic plan highlighting your goals and objectives

  • Keep relevant documents in order

  • Maintain a strong credit score

Be it expansion, buying a new equipment, solving short-term cash crunch or investing in employee training programmes, a business loan is a suitable financing option. While the channels for this mode of finance have widened in the past few years, the time taken for loan approval can be the deciding factor between success and failure. Knowing these secrets would help in faster approval of your business loan.


Understand the loan application process

In India, financial institutions need to follow the guidelines issued by the Reserve Bank of India (RBI) while approving loans. Knowing these guidelines will help you present your loan application in a better and favourable manner. It helps you initiate the loan application process with the power of information and preparedness.

Be detailed

Before approving your loan, your potential lender would like to know:

- About your business
- Your credit history
- Your source of revenues
- Your industry experiences

Hence, chalk out a detailed plan that answers the above queries of your lender. Make a realistic plan highlighting your goals and objectives.

Outline fund utilisation

It’s essential for your potential lender to know how you would utilise the funds and how it would enhance revenues as this will affect the loan repayment. Hence, be crystal clear on how you would deploy the funds to grow your business. Be proactive and offer all the relevant information regarding fund utilisation up front.

How To Get Small Business Finance From Bajaj Finserv

Dos and Don’ts when applying for a Business Loan

Business loans from Bajaj Finserv are designed specially to help growing businesses meet their financial requirements. Easy to apply for and hassle-free to avail, these loans come with several unique benefits that make them the ideal mode of business finance for small and medium sized enterprises. However, when applying for a business loan, there are certain dos and don’ts that you should keep in mind, in order to ensure that your application is processed smoothly. Here, we tell you what they are.

Dos and Don’ts when applying for a Business Loan

Maintain a strong credit score

A strong personal and professional credit score goes a long way in quick approval of your business loan. The credit score reflects your creditworthiness. A high score instils a sense of confidence among your lenders regarding loan repayment. To maintain a high personal and professional score always:

- Pay your bills on time
- Keep debt levels low
- File annual returns on time

Attach relevant documents

To expedite the loan approval process, attach the relevant documents with your application. It reflects your preparedness. Irrespective of whether you approach a bank or an NBFC for a business loan, there are certain documents you need to attach with your loan application form. The most common documents along with passport-size photograph are:

- Business proof; Certificate of business existence
- KYC documents
- Bank account statement
- Other financial documents

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