How to start a pharmaceutical business?

How to get a business loan in banks to start a new business? which bank is best in business loan?

• Hi! I need to start a new business in my hometown. how to get a business loan in banks to start a new business? which bank is best in business loan? What are the documents ...show more

• Answer:

  All businesses cannot get a business loan, so you need to take highest care in applying for one. By ensuring that the whole lot is as accurate as possible and by putting your business in the best possible radiance, you will improve your chance to get the loan. Step-1: Obtain a copy of your credit report to ensure that it’s accurate. Obtain a copy of CIBIL report with score. Most financial institutions review your credit report while they review your loan application. Better CIBIL SCORE will give you better bargaining power. If you’re CIBIL score is not up to the mark or if it is not correct according to your record try to improve it or rectify it. Step-2: Get together some essential financial statements. In order to qualify for a small business loan, the lender needs to be reasonably certain you'll be able to pay it back. Here are some of the essential financial documents you'll need to pay back: • ID Proof of promoters: Papers as proof of identity like Passport, Pan card, Voters ID Card and Driving License. • Address Proof. • Bank Statement 6 Months. • Latest ITR along with computation of income, Balance Sheet & Profit & Loss a/c for the last 2 yrs. Audited or Certified by a CA Step-3: Make a projection of future operations. This projection of future operations should go as far as a year or until positive cash flow is achieved, whichever comes first. Type in "12 month profit and loss projection" into a reputable search engine for a pre-formatted spreadsheet that you'll be able to work with. • Try to follow industry standards when projecting your profits and losses. If you don't follow industry standards, or you don't know what those standards are, try to make explicit any assumptions you are factoring into your projection. This way, the lenders reading your application can better understand your methodology. Step-4: Ask the financial institution which specific documents you'll need. Also ask what additional information the lender requires for your loan proposal. Different institutions have different requirements for small business loan applications. The following is a short rundown of basic documents which are traditionally given to the lender. Step-5: If a loan isn't granted, even after fulfilling above steps successfully, inquire about the loan guarantee program under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. Through this program, the Central Government guarantees loans that financial institutions couldn’t otherwise afford to make. If the financial institution can do this, give it permission to process your loan application under CGTMSE Scheme. You will then receive a loan through your local financial institution. You can try the above steps and if face any problem contact any Chartered Account/CPA in your locality. You can also have some good suggestions from different websites. You may try http://www.caglobal.net/LoanServices.aspx#BusinessLoan , as per my knowledge they provide free of cost suggestions over phone.