The list is long but predictable. What delays files is not the number of documents — it is the three or four that disagree with each other. This checklist is arranged so you can spot those before an underwriter does.
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Collecting the documents is the easy part. Files stall because the documents contradict one another — GST says one figure, the ITR says another, the address on the electricity bill is an office you left in 2023. Check for those first.
| Document | What it proves | Common problem |
|---|---|---|
| PAN of the business and the promoters | Identity, tax linkage | Proprietorships have only a personal PAN — that is normal |
| Aadhaar of promoters / directors | KYC | Name spelled differently from PAN |
| Business address proof | Where you trade | Bill in a landlord's name with no rent agreement |
| Business registration | Legal existence | Certificate expired or never renewed |
| 12 months bank statements | Real cash flow | Personal account submitted instead of current |
| ITR, 2 – 3 years with computation | Declared income | Latest year not yet filed |
| GST returns, 4 quarters | Sales, independently filed | Nil returns in an active quarter |
| Udyam registration | MSME status, scheme access | Not registered at all — it is free and takes minutes |
| Entity | Additional documents |
|---|---|
| Proprietorship | Shop & establishment licence or Udyam certificate; the proprietor's personal ITR serves as the business ITR |
| Partnership firm | Partnership deed, firm PAN, registration certificate, KYC of every partner |
| LLP | LLP agreement, incorporation certificate, LLPIN, designated partner KYC, audited accounts |
| Private limited | MOA and AOA, certificate of incorporation, CIN, board resolution to borrow, shareholding pattern, director KYC, audited financials |
Register on Udyam before you apply — it is free
Udyam registration takes a few minutes on the government portal, costs nothing, and needs only Aadhaar and PAN. It is what makes you eligible for CGTMSE guarantee cover, priority sector lending, and the interest concessions several banks offer MSMEs. A surprising number of eligible businesses borrow at standard rates purely because nobody told them to register. Be aware that agents charge for this — the official portal does not.
1. GST and ITR that disagree. Sales of ₹90 lakh in GSTR-3B and ₹40 lakh of turnover in the ITR is the single most common query raised in underwriting. There are legitimate reasons — exempt supplies, a different financial year cut, credit notes — but you will be asked to explain in writing, and that costs a week. Have the reconciliation ready before you submit.
2. The wrong bank account. Lenders want the current account the business actually operates through. A proprietor running collections through a personal savings account will be asked to produce a current account, and if one does not exist the file usually stops there.
3. Address mismatch. The address on GST, on the ITR, on the utility bill and on the rent agreement should be the same place. If you have moved, update GST first — it is the record the lender treats as authoritative.
4. The unfiled latest return. Applying in November with the previous year's ITR still not filed reads badly, whatever the reason. File it, then apply.
If you are offering property, add the title deed chain, the latest property tax receipt, an encumbrance certificate, the approved building plan, and a valuation from a lender-empanelled valuer. For machinery finance, add the vendor quotation or proforma invoice with GST details.
These take longer to gather than everything above put together, which is the main reason secured loans take three to six weeks rather than a week. Start on them the day you decide to apply, not after the sanction letter.
Q1. Can I get a business loan without GST registration?
Yes, but the choices narrow sharply. Businesses below the GST threshold can borrow against property, under government schemes, or from NBFCs that assess on bank statements alone. Most mainstream unsecured lenders treat GST returns as the primary independent evidence of sales and will not proceed without them.
Q2. How many months of bank statements are needed?
Twelve is standard. Six may be accepted for smaller amounts or by NBFCs. Lenders want the business current account, and they want it in the bank's own format or as a signed PDF — a self-made spreadsheet is not accepted.
Q3. Is Udyam registration mandatory?
Not for a plain commercial loan, but it is required for MSME schemes, CGTMSE guarantee cover and priority sector pricing. It is free and quick, so there is no good reason to skip it.
Q4. Do I need audited financials?
Companies and LLPs generally need them. Proprietorships and small partnerships below the audit threshold can submit ITR with computation, balance sheet and profit and loss statement, usually certified by a CA. Larger loans attract a request for audited accounts regardless of entity type.
Q5. What if my latest ITR is not filed yet?
File it first if you can. If the deadline has not passed, some lenders will proceed on the two previous years plus provisional financials, but they will ask, and it weakens the file. An unfiled return after the deadline is a serious problem in underwriting.
Q6. Can I submit a savings account statement instead of a current account?
Not usefully. A business is expected to bank through a current account, and its absence suggests either that the business is very small or that its money moves outside the banking system. Both readings hurt. If you do not have one, open it and build a few months of history before applying.
Money Bharti checks your profile against the requirements of RBI-registered banks and NBFCs before you apply, so gaps surface on day one rather than in week three. It is a soft enquiry — nothing lands on your credit reports.
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