The Most Important Documents Required to Get a Loan

byDilip PrasadLast Updated: December 29, 2023
Important Documents Required to Get a Loan

In the world of finance, securing a loan can be a pivotal step in achieving personal or professional goals. From personal loans to mortgages and business loans, each type of loan has its unique set of prerequisites in terms of documentation. The documents needed to obtain a loan serve as proof of identity, financial stability, and the ability to repay the borrowed amount. These documents offer lenders insights into an applicant’s financial history, creditworthiness, and overall reliability, enabling them to make informed decisions about loan approvals and terms.

An overview of the documents required for loans for business from Banks and NBFCs

To get a loan for your business you need to submit these documents:

  • KYC documents – PAN with Aadhaar/driving licence/ passport
  • Proof of business ownership – Business licences, documents of registration, tax return of the business, statements of business bank account, etc.
  • Proof of business financials – ITR, GST payment statement, balance sheet, profit and loss statement, bank account statement, etc.

Read more: Government Business Loans: A Path to Entrepreneurial Success

Having mentioned all these, it is safe to say that arranging all these papers can be quite a hassle. As a result, it either limits the credit opportunity for businesses or delays the whole process.

Don’t worry – Merchant Loan is here! 

But there is a way to avoid this. It’s a Merchant loan from Paytm’s lending partners. India’s leading fintech, in association with reputed financial institutions, has introduced this loan to ensure you get the funds you need without wasting time on arranging a long list of documents.

You only need to ensure the following to apply and get a merchant loan from Paytm:

  • PAN details
  • Selfie, Aadhaar details for KYC
  • Linked bank account
  • E-mandate set-up for easy repayment

Paytm ensures the privacy and safety of customer data with highest priority.

Merchant Loan vs Bank Loan

How to Apply for the Merchant Loan?

Step 1: Sign in to your Paytm for Business app and Click on Loans Icon.

Step 2: Then, use the slider to choose the preferable amount.

Step 3: Now go to the ‘Basic Details’ section. Enter your PAN Details, Date of Birth, and Email Address.

#1 How to Apply for the Merchant Loan?

Step 4: Then you need to take a selfie and complete the KYC verification.

Step 5: Then you need to link your bank account.

#2 How to Apply for the Merchant Loan?

Step 6: Once you are done here, you will receive a summary of your loan, and you need to choose the bank account where you want to transfer the loan amount and setup E-Mandate

#3 How to Apply for the Merchant Loan?

Step 7: Then you need to click on ‘Accept and Transfer Money to the Bank’, and you are done.

To sum up, these are the details on documents needed to get a loan for your business. But, it is essential to know that the list of documents mentioned here is tentative, and the final requirement will solely depend on the prerequisites of the lender you choose. And, if you are an existing merchant with Paytm, then a simple KYC verification can get you access to easy loans at a very competitive rate.

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