Required documents for bank loan purpose

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Kollipara Sundaraiah (Querist)
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19 May 2022 Sir,
A small business person rs:6 lacs cc loan required from bank.if bank manager asked project p&l and balance sheet for 2023 and 2024 and udyog aadhar registered certificate document required for bank loan purpose.
Question:
1.projected p & l and balance sheet for 2023 and 2024 how much sales turnover declared for 6 lacs loan.
2.udyog aadhar registered compulsory for bank loan purpose.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 For a small business seeking a CC (Cash Credit) loan of Rs. 6 lakhs from a bank, here’s how you can approach the requirements:

### 1. Projected P&L and Balance Sheet for 2023 and 2024

#### Projected Sales Turnover:
When projecting your sales turnover for the purpose of obtaining a loan, you need to provide realistic estimates based on your business operations and market conditions. Here’s a general approach to estimate sales turnover:

- **Historical Data:** Look at your past sales performance to understand your growth trajectory.
- **Market Analysis:** Consider the market demand and industry trends that could impact your sales.
- **Business Strategy:** Evaluate your business plans, marketing efforts, and potential new clients to gauge future sales growth.

Since the loan amount is Rs. 6 lakhs, banks typically expect your projected sales turnover to justify the loan amount. For example:

- If your business has historically achieved a turnover of Rs. 10 lakhs annually, and you are projecting a moderate growth due to planned marketing efforts and new contracts, you could estimate a turnover of Rs. 12 lakhs for 2023 and Rs. 14 lakhs for 2024.
- These projections should be supported by your business plan, market analysis, and operational capabilities.

### 2. Udyog Aadhaar Registration

#### Requirement:
- **Compulsory Registration:** Udyog Aadhaar registration is mandatory for small businesses seeking loans under various government schemes, including MSME loans. It provides recognition as an MSME (Micro, Small, and Medium Enterprises) and facilitates easier access to credit, subsidies, and other benefits.
- **Process:** You can register for Udyog Aadhaar online through the Udyam Registration portal (https://udyamregistration.gov.in/).

#### Benefits:
- **Loan Eligibility:** Banks often prefer businesses registered under Udyog Aadhaar as it verifies your status as an MSME.
- **Government Schemes:** Access to various government schemes and benefits for MSMEs.

### Conclusion:
- Ensure your projected P&L and Balance Sheet reflect realistic growth and justify the loan amount of Rs. 6 lakhs.
- Register your business under Udyog Aadhaar to streamline the loan application process and enhance your eligibility for MSME benefits.

By fulfilling these requirements with accurate projections and proper registration, you can strengthen your loan application and increase the likelihood of approval from the bank.