Promissory Note - Meaning, Benefits & Format
Jun 11, 2025 | 4 mins read
Applying for an SME Loan requires specific documentation to establish your business’s credibility and financial stability. We assess these documents to ensure SME loan eligibility and repayment capacity. A clear understanding of the required paperwork makes the application process seamless and increases the chances of approval. Accurate and valid SME Loan documents also help speed up your loan approval.
Here are the list of Documents required for SME Loan
1. KYC Documents
Entity - PAN Details, Entity Registration Docs - depending on Entity Type (Shop Act / GST Returns / MOA / AOA / Certificate of Incorporation / Partnership Deed / LLP Agreement)
Individual (Proprietor / Partner / Director) - PAN Details, OVD Document (Aadhar Card / Voter ID / Driving License / Passport / Utility Bill + Rent Agreement)
2. Income Documents
Latest 2 years – Audited Financial Statements, Income Tax Returns, Tax Audit Reports, 6 months GST Returns
3. Bank Account Statement
Operative Bank Account Statement for Latest 6 months
4. Others Documents
Ownership Documents ((Any 1) - Utility Bill / Sales Deed / Index II / Property Tax Receipt), Board Resolution, List of Shareholders, List of Directors
business's and MSMEs can get a loan of up to ₹ 75 Lakh with L&T Finance.
Generally, businesses must be operational for atleast 3 years, but requirements may differ based on the lender.
L&T Finance offers loan amounts starting from ₹ 7 Lakh to ₹ 75 Lakh*, depending on your business profile.
Audited financials strengthen your application, but you can apply for an business loan without audited financial statements.
Yes, the formula remains the same but the inputs like interest rates and tenures may vary by loan type.
Yes, applicable taxes like GST may be added to processing fees and other charges.
Yes, most lenders require ITRs to assess financial stability. However, specific requirements may vary by lender.
L&T Finance levies a prepayment charge of 2% plus applicable if you make a prepayment.
A business plan may not be mandatory for all business Loans, but it is strongly recommended. It helps lenders understand your loan utilisation and repayment capacity.
Yes, negotiation is possible, especially if you have a strong credit profile and business stability.
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