Business Loan Documents: Checklist for Self-Employed and MSMEs

Business loans are decided mainly on how your business earns and how money moves through your bank account. Having the right documents ready shortens the process from weeks to days.

1. KYC of owners

• PAN and Aadhaar of the proprietor, all partners or directors.
• Address proof of the owners' residence.

2. Proof that the business exists

• Udyam registration certificate.
• GST registration certificate (if registered).
• Shop and establishment licence or trade licence.
• Partnership deed or company incorporation papers, where relevant.
• Business PAN for partnership firms and companies.

3. Proof of business address

Electricity bill, rent agreement or ownership papers of the office or shop.

4. Income and financials

• ITR of the last 2 years with computation of income.
• Profit and loss account and balance sheet, preferably CA-audited for larger amounts.
• GST returns (GSTR-3B) of the last 6 to 12 months.

5. Bank statements

Current account statements of the last 6 to 12 months. Lenders look at monthly credits, average balance, cheque bounces and existing EMIs. Fewer bounces and a steady average balance make a strong file.

6. Existing loans

Sanction letters and repayment schedules of current business loans, if any.

Tips

• Keep all statements as downloaded PDFs, not scans.
• Make sure turnover in GST returns, ITR and bank statements roughly match – big gaps raise questions.
• Avoid cheque bounces for a few months before applying.