Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Business > What is a Pre-Approved Business Loan?

Loan for Business

What is a Pre-Approved Business Loan?

What is a Pre-Approved Business Loan?

Lenders offer pre-approved loans to eligible borrowers with a sound financial background.  All you need to do is fill and submit a preliminary business loan application to your lender, who will review your credit history and might make an offer. A lending institution might also pitch you a pre-decided pre-approved loan amount if they are aware of your financials.

The amount approved in both instances depends solely on the lender’s evaluation.

Benefits of a pre-approved business loan

Here is why you should say yes to pre-approved business finance:

#1Covers any business expenses

A lender doesn’t extend pre-approved business finance for any specific business expenditure. But, as long as you are borrowing funds for a business-related expense, you’re good. So, you can take a pre-approved loan to cover your working capital needs, payment of staff salaries, or business expansion; the choice is yours.

#2Tempting business loan interest rates

If a lending institution is pre-approving your loan for business, it means you must have high creditworthiness. And if you have a debt-free repayment history and an excellent CIBIL score, you can also collect business loan at attractive interest rates and flexible repayment tenures.

#3Quick loan disbursal

With pre-approved loan offers, you are more likely to get swift disbursal of loan funds. Why? Because the loan is already approved and takes limited time to reach your bank account.

Additional Read: How to Speed Up Your Business Loan Disbursal Process?

Business loan eligibility criteria for pre-approved finance

Here is what you need to be eligible for this type of loan:

  • Lenders usually consider applicants between the age of 26 and 66 years. The minimum age can go down depending on your financial situation and latest business revenue.
  • You must own a business running for 3 years and with at least 1 year of IT returns already filed.

Documents required for a pre-approved loan for business

  • Identity proof –KYC documents like your Aadhar card, voter ID card, PAN card, passport, or driving license
  • Address proof – Utility bills, ration card, lease agreement, or any other government document displaying your permanent residence
  • Proof of business – Partnership agreement in case of a partnership business, business incorporation or registration document in case of a sole-proprietorship, and commencement certificate or Article and Memorandum of Association for companies
  • Financial documents – Income tax returns filed in the last year, last 6 months’ bank account statements, balance sheet and profit and loss account statements for the previous 2 years

Additional Read: Must Follow Rules before applying for a business loan in 2021

The bottom line 

If you are looking to finance your business operations quickly, choose Tata Capital. We award easy loans for business with attractive interest rates, quick processing, flexible repayment tenures, and structured EMI plans.

You can calculate your potential monthly instalments and interest payable by using our business loan EMI calculator before applying for the loan. This helps you manage your other expenses, plan your EMIs, and comfortably pay off the loan.

Moreover, we don’t burden you with heavy paperwork and ensure hassle-free processing. To know more about our business finance offerings, get in touch with us today!

Apply Now

Give Your Business the Right Boost: Apply for a Business Loan Today

Apply now
Popular Searches
business idea udyogini scheme hsn code full form low investment business ideas top 10 most successful businesses to start transport business import export business in india mineral water plant cost collateral free loans
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.