Courtesy to exemplary advancements in the Indian Fintech ecosystem. Lending is much easier than ever before. Growing and expanding up business in India is now no more a hassle prone task. Business loans are the financial products intended to fulfill the funding needs of a business. These can be used for meeting working capital requirements, inventory and equipment purchase, and for other business-specific growth purposes. According to the Income Tax Act, 1961, receiving capital through loaning isn’t the same as earning revenue for the business. Thus, the interest levied on a business loan is considered to be tax-deductible as a business expense.
Bank Loan Application Checklist
The loaned amount can be used to serve various business purposes.
Easy and flexible repayment options offered by various NBFC’s (non-banking financial institution) make the loan reimbursement a bit more palatable.
The distinct customized loan types offered by lending institutions can be used to meet the varying demands of the business as per the requirements.
The interest paid on business loans is tax-deductible due to it being termed as a business expense. This reduction in interest payments lightens up the borrower’s tax burden.
- Bankable project report
- KYC documents – PAN card, Aadhar Card, Address Proof, passport size photos.
- Quotation of machinery, equipment, furniture & other assets to be purchased.
- ITR/ form 16A- mandatory for exisng business.
- 6 months bank statement.
- Business specific license & work orders, if any.