What Are Pre Approved Business Loans?
A Pre Approved Business Loan is a loan which lender offers to eligible borrowers with a strong financial background. Know more about eligibility, documents, etc.
Business owners need constant capital to ensure the smooth running of business operations. However, they look towards a business loan as the capital amount can be high. Such loans require numerous steps to be followed by business owners for approval which may make the loan process complex. Hence, lenders have designed a loan product where the amount is approved beforehand and offered to business owners to raise immediate capital.
What Are Pre Approved Business Loans?
Lenders such as banks and NBFCs seek business owners with sound financial backgrounds presented through a high credit score. This factor forms the basis of a pre-approved loan. A pre-approved business loan is a loan lenders offer to business owners where a specific loan amount is approved before they can fill out the loan application.
If the business owners are interested, they need to fill out the loan application form and submit the relevant documents to get the pre-approved amount as a business loan.
A pre-approved loan can help business owners through the below-listed benefits:
1. Immediate Capital:Pre-approved Loans do not need to be approved. Hence, they are disbursed faster than other types of business loans.
2. Attractive Interest Rates:Lenders charge nominal interest rates on pre-approved loans as the borrower has high creditworthiness.
3. Time-Effective:Business owners do not have to scout for various business loans and wait for approval when it comes to pre-approved loans, making them time-effective.
Eligibility Criteria For Taking A Pre-approved Business Loan
Here are the eligibility criteria:
1. Established businesses operating for more than six months at the time of application.
2. Minimum turnover of Rs 90,000 in the last three months from the time of application.
3. The business does not fall under any category or list of blacklisted/excluded businesses.
4. The office/business location is not on the negative location list.
5. Charitable organisations, NGOs, and trusts are not eligible for a business loan.
Documents Required For Taking A Pre-approved Loan?
Here are the documents required for taking a loan with prior approval:
• KYC documents – Identity proof and address proof of the borrower and all co-borrowers
• PAN Card of the borrower and all co-borrowers
• Last (6-12 Months) months bank statement of main operative business account
• Signed copy of standard terms (term loan facility)
• Additional document(s) may be required for credit assessment and processing of loan request
• GST Registration
• Previous 12 months’ bank statements
• Proof of business registration
• PAN Card and Aadhar Card copy of the Proprietor(s)
• Deed copy and company PAN Card copy in the case of partnerships
Avail Of A Business Loan With Prior Approval From IIFL FinanceIIFL Finance offers financial services like customised and comprehensive business loans with prior approval. The business loan does not need collateral and offers instant funds up to Rs 30 lakh with a quick disbursal process. The application process is entirely online with minimal paperwork with attractive and affordable interest rates to ensure the repayment doesn’t create a financial burden.
Q.1: Does IIFL Finance provide loans with prior approval?
Ans: Yes. If you have a good financial history, IIFL Finance will offer you loans with prior approval.
Q.2: Do I need to submit collateral to avail of a business loan from IIFL Finance?
Ans: No, IIFL Finance business loan does not require pledging any asset as collateral to take the business loan.
Q.3: How can I know my business loan EMI beforehand?
Ans: You can use the IIFL Finance business loan calculator to estimate the EMI for your business loan based on the required amount and tenure.