Documents Required for Business Loan Application: Bank-wise Requirements

Applying for a business loan can be a game-changer for entrepreneurs looking to scale operations, manage cash flow, or invest in equipment. But before you get the funds, you’ll need to gather the right paperwork. Understanding the documents required for business loan approval — especially bank-wise document lists — is crucial for a smooth and speedy process.

In this guide, we break down everything you need to know, from general loan paperwork in India to specific bank business loan documents required by leading financial institutions.

🧾 Why Are Documents Important in Business Loan Applications?

Documents act as proof — of your identity, your business legitimacy, and your ability to repay. Banks and NBFCs assess these details to determine your eligibility, loan amount, interest rate, and repayment terms.

Providing accurate business loan paperwork upfront increases your chances of quick approval.

🏦 General Documents Required for Business Loan in India

Whether you’re applying to SBI, HDFC, ICICI, or a private NBFC, there’s a standard document checklist most lenders ask for. Here’s what you’ll typically need:

1. Identity Proof (Any one)

• Aadhaar Card

• PAN Card

• Voter ID

• Passport

• Driving License

2. Address Proof

• Utility Bill (electricity, water, phone)

• Passport

• Aadhaar Card

• Lease/rent agreement

3. Business Existence Proof

• GST Certificate

• Udyam Registration

• Trade License

• Shop & Establishment Act certificate

4. Financial Documents

• Last 6–12 months of bank statements

• ITR (Income Tax Returns) for the past 2–3 years

• Balance Sheet & Profit-Loss statements (CA certified)

• Audited financials (for large loans)

5. Ownership Proof

• Partnership Deed (if applicable)

• MOA/AOA for Private Limited Companies

• Proprietorship declaration

6. Photographs

• Passport-sized photos of business owner(s)

🏦 Bank-wise Document List for Business Loan Applications

Let’s now look at bank-wise business loan paperwork for major lenders in India:

🔹 SBI (State Bank of India)

SBI offers various business loans like SME loans, working capital loans, and more. Here’s what you’ll need:

Documents Required:

• Duly filled application form

• KYC documents of proprietor/partners/directors

• ITRs for the last 2–3 years

• Audited balance sheet and P&L account

• Business address proof (utility bill, lease deed)

• Sales tax/GST returns

• Collateral documents (if applicable)

✅ Tip: SBI is very strict about financials. Keep your statements updated and filed correctly.

🔹 HDFC Bank

HDFC is a preferred private bank for MSMEs due to its faster processing and lesser red tape.

Documents Required:

• Business PAN Card and Aadhaar of proprietor

• Bank statements (last 6–12 months)

• Proof of business continuity (minimum 3 years)

• ITR with computation and balance sheets (2 years)

• Office and residence address proof

✅ Tip: HDFC often asks for digital KYC and prefers ITRs filed online.

🔹 ICICI Bank

ICICI offers flexible unsecured and secured business loan options.

Documents Required:

• KYC of business and owners

• GST registration and filings

• Audited P&L and balance sheet

• Business continuity proof

• Property papers (for secured loans)

✅ Tip: ICICI accepts digital documents uploaded via its SME portal — a major convenience.

🔹 Axis Bank

Axis offers collateral-free business loans up to ₹50 lakh.

Documents Required:

• Application form with photos

• GST certificate or trade license

• Last 12-month bank statement

• Income documents (ITR, audited financials)

• Proprietor/partner/director ID & address proof

✅ Tip: For loans above ₹25 lakh, Axis may ask for additional collateral papers.

🔹 Kotak Mahindra Bank

Kotak provides business loans for professionals, traders, and manufacturers.

Documents Required:

• Identity and address proof

• Bank account statements (12 months)

• Business registration documents

• Income documents (ITRs, balance sheets)

✅ Tip: Kotak favors applicants with good digital credit history.

🔹 Bajaj Finserv (NBFC)

NBFCs like Bajaj Finserv require fewer documents and process loans faster.

Documents Required:

• Aadhaar + PAN

• Bank statements (6 months)

• Business proof (GST, shop license)

• ITR for 1–2 years

✅ Tip: NBFCs may skip audited financials if your bank statement shows healthy turnover.

🗂️ Self-Employed Business Loan Paperwork: Additional Tips

For self-employed individuals, here’s how to strengthen your loan file:

• Include any existing loan repayment track record

• Submit utility bills or rent receipts in your business name

• Provide business photos or a website printout for online operations

• Share vendor/client invoices to prove transaction history

These informal documents boost your loan eligibility, especially for smaller loan amounts.

💼 Common Mistakes to Avoid in Business Loan Documentation

Even a small error can delay or derail your loan approval. Here are key pitfalls to avoid:

❌ Mismatched names across documents
❌ Submitting outdated bank statements
❌ Missing ITR pages or computation sheets
❌ Submitting hand-written invoices or financials
❌ Skipping registration documents (like GST or Udyam)

Always double-check your paperwork before submission.

📋 Business Loan Paperwork Checklist (Quick Summary)

📚 Real-Life Example: Rahul’s SME Loan Story

Rahul, a small manufacturer from Pune, applied for a ₹15 lakh working capital loan from SBI. His application was initially delayed due to an expired trade license and missing GST filings.

After updating his business loan documents, including fresh ITR and CA-certified financials, his loan was approved within 12 working days.

👉 Lesson: Keep all your business and tax filings up to date to avoid delays.

🙋 FAQs: Documents Required for Business Loan

1. What documents are needed for a ₹10 lakh business loan in India?

You’ll typically need Aadhaar, PAN, GST certificate, ITRs (last 2 years), balance sheet, profit & loss account, and 6–12 months bank statements.

2. Do I need collateral for business loans?

Not always. Many banks and NBFCs offer unsecured business loans up to ₹50 lakh. However, collateral improves your chances and may reduce interest rates.

3. Can I get a business loan without GST registration?

Some NBFCs may allow it if your income proof is strong, but banks usually require GST or another proof of business activity.

4. Is audited financials mandatory for a business loan?

Yes, for loans above ₹25 lakh, most banks will ask for CA-certified or audited financials. For smaller amounts, bank statements and ITRs may suffice.

5. What if my business is less than a year old?

New businesses may find it harder to qualify unless backed by strong personal credit or collateral. Some startup-focused lenders may still offer options.

6. How can I check my loan document status online?

Most banks now allow document tracking via their SME loan portals or mobile apps. Keep your reference/application number handy.

7. What’s the best bank for business loan in India based on paperwork?

Private banks like HDFC and ICICI often have fewer paperwork hassles, while SBI may ask for more documentation but offer better rates.

🏁 Conclusion: Get Your Business Loan Faster with the Right Paperwork

Getting a business loan approved isn’t just about eligibility — it’s about being prepared with the right paperwork. Whether you’re applying to a public sector giant like SBI or a nimble NBFC like Bajaj Finserv, the documents required for business loan approval are your ticket to fast funding.

Make a checklist, gather all bank-specific forms, and stay updated with your financials — because the smoother your documents, the faster your business gets the boost it needs.