I have started a business and need a business loan


I have started a business and need a business loan. The banks seek IT returns of the business for last 3 years which I don’t have. What are my options?


Realistically you can opt for a personal loan if your business is a proprietorship concern. With personal loans you can get a loan instantly if you fulfill the basic legibility criteria. If you are just starting out you may not always have a collateral security to offer. Opting for a personal loan
therefore becomes easier and more effective as a first time entrepreneur.

For business loans if your business qualifies under the credit guarantee scheme then you can opt for a business loan minus any collateral security. Also consider opting for a loan under the Mudra scheme if you are eligible as the maximum borrowing limit is Rs. 10 Lakhs only.


Hi Sohini,

Most banks do not require your income tax return if you are looking to avail a Personal Loan or business loan. However, they will need your audited income statements, bank statements, proof of identity and proof of address. Most banks ask for the below documents.

Proof of identity
 Passport
 Driver’s license
 Voter ID
 PAN Card

Residence or Address Proof
 Passport copy
 Any utility bill such as electricity or water bills
 Rental agreement
 Ration card

Proof of Income
 Audited financial statements
 Income receipts

Bank Statements
 Last 3 – 6 months bank statements of your business account

 At least 2 passport-sized photographs. Completed and signed application form with all the relevant details filled in

Looking for a Personal Loan? Click here.

BB Expert