Business loans — whether unsecured term loans, GST-based products or working capital limits — need a clear paper trail of who owns the business, how it earns and how it banks. Requirements scale with loan size: a small digital ticket may need less than a multi-crore facility.
1. Identity and address (promoters)
- PAN of all applicants / partners / directors as required
- Aadhaar or other officially valid ID
- Recent photographs
- Address proof if not already covered
For companies and LLPs, personal KYC of authorised signatories is still mandatory.
2. Business existence proofs
- Udyam registration (strongly preferred for MSME-labelled products)
- GST registration and recent returns
- Partnership deed, Certificate of Incorporation, or shop establishment licence 0.50%–2.00% typically
- Trade licences or sector-specific permits where relevant
3. Financial documents
- Income Tax Returns and computation (commonly last 2 years)
- Audited financial statements if the lender asks (more common above certain turnover)
- Provisional profit and loss for the current year for larger tickets
4. Banking evidence
- 6–12 months current account statements (PDF from net banking is usually fine)
- Existing loan account statements, if any
- Cancelled cheque or account proof for disbursal
Clean credits matching GST sales help a lot. Regular cash deposits without invoice trail can invite extra queries.
5. Purpose and security (when applicable)
- Machinery quotations or vendor proforma invoices
- Brief use-of-funds note for expansion or working capital
- Property papers if the facility is secured or is a loan against property
Typical document matrix
| Document | Small digital loan | Bank term loan / WC |
|---|---|---|
| PAN / Aadhaar | Yes | Yes |
| GST returns | Often | Usually |
| ITR (2 years) | Sometimes | Usually |
| Bank statements | Yes | Yes (longer history) |
| Udyam | Preferred | Preferred / required |
| Audited accounts | Rare | As per ticket size |
Preparation tips
- Name PDF files clearly (e.g. GST_Q1_2025.pdf)
- Ensure statements show the same entity name as registration
- Clear small cheque bounces before applying
- Disclose existing loans — FOIR is calculated anyway from bureau data
When documents are ready, you can explore business loans and MSME options on LoanPao or send a free enquiry.