While the requirement of a business loan in Mumbai differs, the requirement of documents to fulfill the formalities of loan process remains consistent from lender to lender. Riddhi Siddhi Multi Services work closely with entrepreneurs to understand their financial requirements and came up with the best plan for them. The following are items that will generally be required as part of any small business loan application:

1.Personal Background: Personal background check is an integral part for acquiring business loan in Mumbai and it can be a part of the loan application or a separate document requested by many lenders consisting of previous addresses, names used, criminal record, educational background, etc.

2.Resume: Some investors or lenders may require management or business experience evidence of small business owner or entrepreneur, mostly in case of granting loans that are intended to start a new business.

3.Business Plan: Lenders generally require the submission of a thoughtful business plan. The business plan should include a complete set of projected financial statements, including profit and loss, cash flow, and a balance sheet.

4.Personal Credit Report: The lender will obtain a personal credit report for each principal as part of the application process. Each principal should obtain a credit report from all three major consumer credit rating agencies prior to submitting a loan application.

5.Business Credit Report: The lender will usually obtain a business credit report. It is important for the principals to review in advance the business’ credit report in order to identify and remedy any issues.

6.Income Tax Returns: Most lenders require applicants to submit personal and business income tax returns for the previous 3 years.

7.Financial Statements: Lenders usually require principals to submit signed personal financial statements. Some lenders require financial statements from all principals – regardless of ownership percentage.

8.Bank Statements: Lenders generally require one year of personal and business bank statements to be submitted as part of a loan package.

9.Collateral: Collateral requirements vary greatly. Some loan programs do not require collateral. Loans with a higher operational risk needs substantial collateral.

10.Legal Documents: The lender may require the principals to submit one or more legal documents. The following documents are typically requested:

•Business licenses and registrations required to conduct business;
•Articles of Incorporation; o Copies of contracts with any third parties;
•Franchise agreements; and,
•Commercial leases.

Riddhi Siddhi Multi Services advice entrepreneurs looking for business loan in Mumbai to go through legal counsel relative to formation purchase/franchise agreements, employment contracts, documents and filings, leases, and other documents that are beneficial form a legal perspective.