Bihar is an Indian State with the third-largest population in the country. The state has the highest proportion of young people with almost 58% of the people in the state being under the age of 25.
The state of Bihar has a strong cultural history, and it was a center of learning for Indian and international students alike. The Make-In-India movement by the Government of India has motivated a lot of people in Bihar and other states of India to quit their 9 to 5 jobs and pursue their dream to start a business venture.
However, starting a business is not easy. The biggest hurdle people face in starting their business is the lack of sufficient funds. Any business needs enough money as working capital and for other expenses like buying equipment and raw material.
You can avail of a business loan to fund your business start-up or expand your existing business in the state. Here is your complete guide to getting a business loan in Bihar.
Documents Required for a Business Loan in Bihar:
Leading financial institutions offer business loans at the lowest interest rate in Bihar. Business loans are customer-friendly, and the documents they require to give a business loan in Bihar are minimum. The documents required for a business loan in Bihar are:
- A recent photograph of the loan applicant
- A valid identity proof
- A valid address proof
- Bank statements of the loan applicant
- GST statement or ITR statements of the loan applicant
- Income proof of the loan applicant
- A valid proof of the existence of the business venture, like its certificate of incorporation, etc.
Eligibility Criteria for a Business Loan in Bihar
The eligibility criteria for a business loan in Bihar are as follows:
- The loan applicant can be a self-employed person, proprietor of a firm, or it can be a private limited company, or a partnership firm having a business in manufacturing, trading, or services.
- A person who has been doing the existing business for at least three years and has an overall business experience of at least five years can apply for this loan.
- The loan applicant should not be less than 22 years at the time of applying for a business loan and the maximum age of the loan applicant at the time of the loan’s maturity should not be more than 65 years.
- The annual turnover of the business should be at least Rs. 10 lakhs.
- The business should have been in profit for the last two years.
- The business should have an annual income of Rs. 2 lakhs at least.
Lending institutions provide unsecured business loans of up to Rs. 50 lakhs. If a business enterprise requires a loan of a higher amount, it can apply for a secured business loan.
How to Apply for a Business Loan in Bihar
Top lenders offer a seamless online application procedure for business loans. The online loan application process takes away the need to stand in long queues and fill lengthy forms at the lender’s office. You apply online for a business loan using the following steps:
- Visit the lender’s website and click the suitable option between a business loan and an SME loan based on your requirement.
- Enter the information required to apply for the business loan and upload the documents required.
- Enter the loan amount you require for your business and also enter the tenure for which you need the loan.
- Based on all the information you have entered above, the lender will immediately notify you if your loan application will be considered further or not.
- If the lender decides to consider your loan application for further checks, he will give you a reference number that you need to use for future communications.
- The lender’s representative will contact you if the lender needs any more information.
- The lender verifies the documents and conducts detailed verification of all the information you provide.
- Once the verification is complete, the lender gives the borrower a customized loan offer with a suitable loan amount and rate of interest.
Once the loan is approved, the loan applicant receives the money in his bank account. Lending institutions offer business loans at affordable rates for a tenure of up to 60 months.