December 16, 2018



Banks employ various criteria to screen, rate and assess all loan applications made by an Entrepreneur for obtaining a Business Loan. Hence, it is important to produce correct information to the Banker, as nowadays, it is easier for the Financial Institutions to track the credit score and repayment or default behavior of loan applicants.





Here is the exhaustive list of documents to be filed and taken to the Bank Manager for Loan Evaluation. 



  1. Voter ID

  2. Aadhar Card

  3. PAN Card

  4. Residential Address Proof

  5. Educational Qualification Documents

  6. Previous Work Experience Related Documents: Take all your Offer Letters, Experience Letters, Payslips, and Relieving Letters.


Note:If you have a partner, the above said documents have to be produced for your partner as well.




  1. Sole Proprietorship Registration/ Partnership Agreement etc: Have the Partnership Agreement drafted by a professional and ensure that the agreement clauses are error free. If it is a Company, take a Certificate of Incorporation of a Company.

  2. 6 months bank statement: Take printouts of latest Bank Statement. Ensure that it is not older than 10 days.

  3. Rental Agreement of Office Premises: Be sure to draft a Rental Agreement for your Office Premises. It is an essential documentary proof of existence of your Office/ Business.

  4. Details of permanent Employees of your Company if available: Do not include the details of temporary or contract workers.

  5. Business Plan: Have a good business plan drafted

  6. Last 3 Years Profit and Loss Account duly signed by an Auditor: If you are in business for less than 3 years, then produce the Profit and Loss Account for that many number of years.

  7. Last 3 Years Balance Sheet duly signed by an Auditor: If you are in business for less than 3 years, then produce the Balance Sheet for that many number of years.

  8. Profit and Loss Account Forecasts: Forecasts have to be prepared for 3 to 5 years as the case may be, duly prepared and signed by an Auditor. While preparing the Profit and Loss Forecast, be realistic about your revenue and expenses. The Bank Manager can find out easily if your numbers are cooked up.

  9. Balance Sheet Forecasts: Balance Sheet forecasts have to be prepared for 3 or 5 years as the case may be, duly prepared and signed by an Auditor. Try to be realistic about your assets and liabilities. Please do not try to cook up the numbers.

  10. Profit and Loss Account Ratios duly prepared and signed by an Auditor: Prepare relevant Profit and Loss Account Ratios using the help of an Auditor to assess the strength of your Business.

  11. Balance Sheet Ratios duly prepared and signed by an Auditor: Prepare relevant Balance Sheet Rations using the help of an Auditor, to assess the strength of your business.

  12. Details of Investment in Assets: Take the Title Deeds and other investment details of all the assets you own.

  13. Income Tax Returns of past 3 years: Make sure to file your Income Tax Returns even if you have very less transactions, as this is an important document for your business and becomes absolutely essential when approaching a Bank for a Loan.

  14. GST Returns of past periods: GST returns are gaining importance, just like your Income Tax Returns, hence make sure to file your GST returns without fail.

  15. Brochure of your Business: A well designed brochure stating the type of your business, the products you deal with and age of your business will give the banker a good understanding of your business.


  1. MSME Registration or Udhyog Aadhar Registration Certificate: There are many benefits of registering for Udhyog Aadhar which has been discussed in other posts. For detailed information on whether your business falls under the MSME category and How to Register for Udhyog Aadhar, check out this link. 

                  All About Micro, Small and Medium Enterprises (MSME)            

                 Step by Step Procedure to Register for Udhyog Aadhar


  2. TAN Registration: TAN is the Tax Deduction Account Number. If you are liable to Deduct Tax or Collect Tax at source, you are required to get a TAN mandatorily.

  3. GST Registration Certificate: If you are required under law to obtain a certificate, you must mandatorily register for GST. You may also go for a voluntarily registeration, as there are some benefits of voluntary registration.

  4. Reference Letters from eligible persons: This is to certify your integrity, good character  and achievements if any.

  5. Your CV/ Profile : Do not make it longer than a page or two. This is to assess your skill set, experience and capacity to run the business.

  6. Details of the amount of loan you are looking for.

  7. Details of how the loan amount will be utilized in your business: Remember you cannot use the business loan amount for your personal needs.

For further details and assistance on preparation of P&L, Balance Sheet and Forecasts, reach us @



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