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Help And Support

GrowmoreLoans is a  DSA, having  partnerships with more than 60+ leading Banks and NBFCs and Fintechs to offer loans across India. 

FAQ's

Applying for a loan typically involves several steps to ensure that you understand the terms and conditions of the loan and provide the necessary documentation for the lender to evaluate your eligibility. Here's a general guide on how to apply for a loan:

  1. Determine Your Loan Needs: First, assess your financial situation and determine the amount of money you need to borrow, the purpose of the loan, and your ability to repay it. Consider factors such as interest rates, repayment terms, and any collateral requirements.
  2. Research Lenders: Research different lenders, including banks, credit unions, online lenders, and peer-to-peer lending platforms, to find one that offers loans that meet your needs and preferences. Compare interest rates, fees, loan terms, and customer reviews to make an informed decision.
  3. Check Your Credit Score: Your credit score plays a significant role in determining your eligibility for a loan and the interest rate you'll receive. Obtain a copy of your credit report from credit bureaus like Equifax, Experian, or TransUnion, and review it for accuracy. If your credit score is low, take steps to improve it before applying for a loan.
  4. Gather Documentation: Lenders typically require documentation to verify your identity, income, employment status, and other financial information. Common documents include government-issued ID, pay stubs, tax returns, bank statements, and proof of assets or collateral.
  5. Fill Out the Loan Application: Once you've chosen a lender, complete the loan application form accurately and provide all requested information. Be prepared to provide details about your personal and financial background, including your income, expenses, debts, and assets.
  6. Submit Your Application: Submit your loan application to the lender through their preferred method, which may include online applications, in-person visits to a bank branch, or phone applications. Ensure that you've included all required documentation and information to expedite the review process.
  7. Wait for Approval: After submitting your application, the lender will review your application, credit history, and documentation to assess your eligibility for the loan. This process may take a few days to several weeks, depending on the lender and the complexity of your application.
  8. Review Loan Terms: If your loan application is approved, carefully review the loan terms and conditions, including the interest rate, repayment schedule, fees, and any other terms outlined in the loan agreement. Make sure you understand the terms before accepting the loan.
  9. Sign the Loan Agreement: Once you're satisfied with the loan terms, sign the loan agreement to formalize the loan arrangement. Be sure to keep a copy of the agreement for your records.
  10. Receive Funds: After signing the loan agreement, the lender will disburse the loan funds to you, typically through direct deposit into your bank account or by issuing a check. Use the funds responsibly for the intended purpose and make timely payments according to the loan terms.

Remember to borrow only what you need and can afford to repay comfortably to avoid financial strain or defaulting on the loan. Additionally, be cautious of predatory lenders and scams, and always read the fine print before signing any loan agreement.

 

Checking the status of your loan typically depends on the lender and the method through which you applied for the loan. Here are some common ways to check the status of your loan:

  • Online Account: Many lenders provide online account access where you can log in to view the status of your loan application or existing loan. Check the lender's website and log in to your account using your username and password. Once logged in, navigate to the section for loan status or application status to view updates.
  • Phone: Contact the lender's customer service department by phone and inquire about the status of your loan. Provide your personal information and application details as requested, and the customer service representative should be able to provide you with an update on your loan status.
  • Email: If you received confirmation of your loan application via email, check your email inbox for any updates or notifications regarding your loan status. Lenders often send automated emails to applicants to confirm receipt of the application and provide updates on the status of the application.
  • Loan Application Portal: Some lenders have dedicated loan application portals where you can track the progress of your application online. If you applied for the loan through such a portal, log in using your credentials and navigate to the section for application status or updates.
  • Mobile App: If the lender has a mobile app, you may be able to check the status of your loan application or existing loan directly from the app. Download the lender's mobile app from the app store, log in using your account credentials, and look for the loan status or application status section.
  • In-Person Visit: If the lender has physical branches or offices, you may visit in person and inquire about the status of your loan application. Bring any relevant documentation or identification, such as your application reference number or government-issued ID, to assist the loan officer in locating your application.
  • If you're unable to check the status of your loan using any of the above methods, or if you encounter any difficulties or delays, don't hesitate to contact the lender's customer service department for assistance. They should be able to provide you with the information you need and address any concerns you may have regarding your loan status.

 

Venture debt is a type of debt financing. In simple terms, it is a non-convertible secured loan that complements equity financing and has several use cases for new-age businesses, such as:

  • Protecting Equity Dilution – Using debt as growth capital fuels high-level business growth, preventing equity dilution.
  • Extending Runway Between Rounds – Using debt capital helps entrepreneurs to boost capital-raising capacity in the future.
  • Financing Working Capital Mismatch- Meets working capital requirements of a growing business
  • Financing Capital Investments – Funds business acquisitions and capital expenditures in the absence of bank finance.
  • Create a Credit Track Record – By providing a robust capital blend of debt and equity finance, companies can build an appealing credit track record at an early stage.

How is Venture Debt Structured?

Here is how a venture debt is structured:

  • The fundamental instrument in venture debt is a Non-convertible Debentures (NCD).
  • NCDs are coupon-bearing tools.
  • Lender also signs up for the equity warrants of the borrowing company.
  • Warrants allow the holders to sign up for the company‘s equity at the desired price for a particular tenure.

How Does Venture Debt Work?

It is a type of debt offered by banks and financing institutions for a small or medium term. However, sanctioning the venture debt funds depends on the last equity round generated by the business.

Typically, around 30% of the capital raised as initial equity funding is sanctioned as venture debt funds. Borrowing a company’s equity capital warrants such debt funds. The interest rate for such borrowings can be a benchmark rate like the LIBOR rate.

Covenants & Liquidation Preference

Bank and non-bank lenders both include covenants and liquidation in the loan agreement. It helps to regulate the incentives and boosts the chances of repayment from the borrower.

Types of Venture Debt

  • Equipment Financing: Enables businesses to finance the equipment required for operations.
  • Accounts Receivables Financing: Provided against accounts receivable of the borrowing company.
  • Growth Capital: Source of working capital for businesses, helping organizations accelerate growth.

Obtaining construction finance debt typically involves providing various documents to lenders to assess the project's viability, your financial standing, and the potential risks involved. While specific requirements may vary depending on the lender and the nature of the construction project, here is a list of common documents needed for construction finance debt:

  1. Business Plan or Project Proposal: Outline the details of the construction project, including the scope, timeline, budget, funding requirements, and projected returns. Include information on the location, size, design, permits, regulatory approvals, and any other relevant details.
  2. Construction Cost Estimates: Provide detailed cost estimates for the project, including materials, labor, equipment, subcontractors, permits, fees, and contingency allowances. Include a breakdown of costs for each phase of the project.
  3. Financial Statements: Submit your company's financial statements, including balance sheets, income statements, cash flow statements, and tax returns for the past few years. This helps lenders assess your financial stability and ability to repay the debt.
  4. Personal Financial Statements: Provide personal financial statements for key stakeholders, such as company owners, directors, or guarantors. This helps lenders evaluate the personal financial capacity and creditworthiness of individuals involved in the project.
  5. Project Feasibility Study: Include a feasibility study that analyzes the market demand, competition, pricing, revenue projections, and potential risks associated with the construction project. This helps lenders assess the project's viability and potential for success.
  6. Construction Timeline: Provide a detailed construction timeline or schedule, outlining key milestones, phases, and completion dates for the project. This helps lenders understand the project's progress and timeline for repayment.
  7. Construction Contracts and Agreements: Include copies of construction contracts, agreements with subcontractors, architects, engineers, suppliers, and other parties involved in the project. This helps lenders understand the contractual obligations and risks associated with the project.
  8. Property Documentation: Provide documentation related to the property, such as deeds, titles, surveys, zoning approvals, environmental assessments, and any other legal documents. This helps lenders assess the property's value, ownership, and potential risks.
  9. Insurance Policies: Provide proof of insurance coverage for the construction project, including builder's risk insurance, liability insurance, and any other required policies. This helps mitigate risks and protect the project against unforeseen events.
  10. Permits and Approvals: Include copies of building permits, planning approvals, environmental permits, and other regulatory approvals required for the construction project. This demonstrates compliance with local laws and regulations.
  11. Project Management Plan: Provide a project management plan outlining roles, responsibilities, reporting structures, quality control measures, safety protocols, and risk management strategies for the construction project.
  12. Other Documentation: Depending on the lender's requirements and the specific nature of the construction project, additional documentation may be needed, such as personal guarantees, collateral, appraisals, environmental reports, and legal opinions.
  13. Developer Profile: Details of past projects completed, RERA registration details, No. of sq. ft area sold, cost of construction, sale price, any unsold inventory available etc.

It's essential to work closely with your lender and provide all requested documentation in a timely manner to facilitate the construction finance debt application process. Be prepared to answer any questions or provide additional information as needed to support your loan application.

No Data

Let us see, what are the documents required for a personal loan for different kinds of applicants.

List of Documents Required for Salaried Employees

Income Proof - Copy of Form 16, last 3 months’ bank account statements / salary certificate or salary slips of the account where the salary is being credited.

Identity Proof - A copy of PAN card/ Aadhar card/ voter’s ID card or driving license.

Address Proof – A copy of driving license/ utility bills/ bank statement / Aadhar card

Employment Proof - A copy of job appointment letter/ contract / company’s / HR’s email ID or official identity card.

Residence Ownership Proof - Copy of property documents, maintenance bill and electricity bill of the residence.

Investment Proof (if any) - Copy of receipts of fixed deposits or mutual fund

Photograph - Latest coloured passport-size photograph.

List of Documents Required for Self Employed

Income Proof - Copy of latest income tax returns submitted by the applicant, documents supporting the audited financials of the past 2 financial years and your last 6 months’ bank statements.

Identity Proof - A copy of PAN card / passport / voter’s ID card or driving license.

Address Proof - A copy of passport / Aadhar card or utility bills

Office Address Proof - Copy of incorporation documents/ registration certificates/ MSME/ GST registration document or shop & establishment act certificate of the commercial space.

Office Ownership Proof - Copy of Maintenance bill, property documents or electricity bill of office.

Business Existence Proof - A copy of company registration license or tax registration.

Photograph - Latest coloured passport-size photograph.

List of Documents Required for Pensioners

Income Proof - Copy of pension document / bank account statements.

Identity Proof - A copy of Aadhar card / PAN card / voter ID card / passport or driving license.

Address Proof - A copy of driving license / utility bills / bank statement / Aadhar Card

Photograph - Latest coloured passport-size photograph.

List of Documents Needed for Personal (Pension) Loan for Senior Citizen ( Pension Loan )

Income Proof - Copy of pension document (if any) / bank account statements / PPO

Identity Proof - A copy of Aadhar card / PAN card / voter ID card / passport or driving license.

Address Proof - A copy of PAN card / driving license / utility bills / bank statement.

Photograph - Latest coloured passport-size photograph.

 

Depending on the group of clients (salaried/professional/businessman/NRI) they belong to, an applicant must present a variety of documents that verify their KYC, the antecedents of the property they seek to acquire, their income background, etc. in order to secure a house loan. The paperwork needed to apply for a house loan in India are listed below:

15 Documents that all citizens will require:

  • Loan application form.

  • Property detailed documents

  • 3 photographs passport sized.

  • Identify proof

  • Residence proof

  • Bank Account Statement/Passbook for the last 6 months.

  • Liabilities statement and Personal Assets.

  • Signature verification by bankers of the applicant.

  • Salary Certificate (original) from the employer. (Salaried individuals)

  • Form 16/IT Returns for the past 2 financial years. (Salaried individuals)

  • IT Returns/Assessment Orders copies of the last 3 years. (Self–employed professionals)

  • Challans as proof of Advance Income Tax payment. (Self–employed professionals)

  • Proof of business address for non-salaried individuals. (Self–employed professionals

NRI-Specific Documents:

  • Document establishing KYC.

  • Latest IT Returns (for applicants filing IT returns in the country).

  • Copy of Passport showing the page of residence visa.

  • Bank statements copies from overseas of the past 6 months.

  • Salary Certificate from employer stating in English the name (as per passport), designation, passport number, date of joining, and latest salary.

  • Last 3 to 6 months’ salary slips reflecting variable components like incentives, overtime, etc.

  • For Self Employed NRIs, business documents like Trade License, Sponsor Agreement, Power of Attorney, etc.

  • Proof of employment by the Government of the residing country like work permit, labour contract, etc.

  • Documents related to the Property with cost estimates from an Indian Architect or Engineer.

  • For Salaried NRIs, income documents attested by an embassy official are required if there’s no documented evidence for salary credit or fund remittance to India available.

  • Last 6 months’ NRO/NRE bank statement.

  • If the applicant is unavailable in the country at the time of signing documents, Power of Attorney needs to be produced by the person acting on their behalf.

Documents Required for a Home Loan Application

The following list includes some of the typical documents accepted as KYC:

  • Proof of Age : PAN card, Passport, Birth certificate, Driving license, Bank passbook, Marksheet from 10th class (Any 1)

  • Photo ID proof : Passport, PAN Card, Driving License, Voter ID (Any 1)

  • Proof of residence : Electricity Bill, Ration Card, Telephone Bill, Employment Letter (Any 1)

Documents Required for Loan Guarantor

  • Identify proof.

  • Residence proof.

  • Liabilities Statement and Personal Assets.

  • 2 photographs passport sized.

  • Proof of business address.

  • Signature identification from present bankers.

Property Documents Required for Home Loan

  • Approved building plan (showing floor plan for flat purchase).

  • Original No Objection Certificate issued under the ULC Act, 1976.

  • Deed of Sale or Sale Agreement or Share Certificate (original) in case of a cooperative society.

  • Copy of relative order if agricultural land is being converted.

  • No objection certificate (NOC) from Builder/Housing Society.

  • Receipts for taxes paid for Building and Land, certificate of possession, and a certified sketch of the location of the property from revenue authorities.

  • Allotment Letter from Society/Housing Board/Private builder.

  • Receipts of advance payments for the flat purchase.

  • Certificate of Non-encumbrance encompassing the last 12 years/30 years.

  • Receipt of land tax payment and certificate of possession issued by revenue authorities.

  • Permission letter from Appropriate Authority.

  • Detailed estimate of construction cost.

  • Letter from Society/Builder/Housing Board mentioning their bank and account details, for instalment remittance.

  • Applicable for purchase of land plot, a declaration by loan borrower stipulating the date by which to construct a house.

  • Report from a lawyer as per standard format.

  • Report stating the valuation of property in a standard format by an empanelled valuer.

  • Post closure of loan, documents required for the handover of original Property documents.

  • Power Of Attorney for collecting original documents of Property.

  • In event of the demise of the loan borrower:

    • Letter requesting handing over of Property documents from Legal Heir/Nominee(s).

    • Letter relinquishing the right to Legal Heirs/Nominees for Property documents handover.

Depending on the lender’s requirements, the borrower will need to furnish documents required for Business Loan as below: 

  • Identity Proof: 
  • Pan Card
  • Aadhar Card
  • Voters Id Card
  • Driving License
  • Address Proof: 
  • Passport
  • Utility Bill – Telephone or Electricity bill not more than 3 months old
  • Trade License
  • Lease Agreement
  • Sales Tax Certificate
  • Income Proof: Bank statement or passbook of the last 2 years.
  • Financial Proof: Income Tax Return of the last 2 years together with the computation of Balance Sheet, Income and Profit & Loss A/c. Together with the previous 3 years audited financials. Last 6 months bank statement. Last 2 years audited Balance Sheet by the CA, GST Challans, and Tax Audit reports. 
  • Proof of continuation of business
  • Business Ownership Proof: depending on the type of business you own that is a sole proprietorship, partnership, registered company etc. you will require to submit the requisite documents. 

Project finance involves financing large-scale infrastructure, energy, or industrial projects where the project's cash flows and assets are used as collateral. Lenders typically require extensive documentation to assess the project's feasibility, risks, and potential for generating sufficient cash flows to repay the debt. Here are the common documents needed for project finance:

  1. Project Feasibility Study: A comprehensive study that evaluates the technical, economic, financial, and environmental viability of the project. It includes market analysis, demand forecasts, cost estimates, revenue projections, risk assessment, and sensitivity analysis.
  2. Business Plan: An in-depth business plan outlining the project's objectives, structure, management team, marketing strategy, competitive analysis, and revenue model. It should demonstrate the project's ability to generate sustainable cash flows and achieve financial viability.
  3. Financial Model: A detailed financial model that forecasts cash flows, income, expenses, and project returns over the project's life. It should include assumptions, sensitivity analysis, and scenario planning to assess the project's financial feasibility and risk factors.
  4. Legal Documentation: Various legal documents related to the project, including project agreements, contracts, permits, licenses, regulatory approvals, land titles, leases, and environmental assessments. These documents establish the project's legal framework, ownership rights, and compliance with regulatory requirements.
  5. Project Contracts: Copies of key project contracts, including construction contracts, engineering procurement and construction (EPC) contracts, off-take agreements, supply agreements, operating agreements, and insurance policies. These contracts define the project scope, obligations, and risk allocation among stakeholders.
  6. Financial Statements: Financial statements for the project sponsor, developers, and any other relevant parties. This includes balance sheets, income statements, cash flow statements, and tax returns to assess the financial strength and creditworthiness of the project sponsors.
  7. Equity Commitments: Documentation confirming the equity contributions from project sponsors and investors, including capital commitments, shareholder agreements, and equity financing arrangements. This demonstrates the sponsor's financial commitment and alignment of interests with lenders.
  8. Project Schedule: A detailed project schedule or timeline outlining the construction milestones, procurement schedule, commissioning dates, and operational ramp-up. This helps lenders assess the project's progress and timeline for generating cash flows.
  9. Risk Assessment: A comprehensive risk assessment report that identifies and evaluates potential risks associated with the project, such as construction risks, operational risks, market risks, regulatory risks, and financial risks. It should include risk mitigation strategies and contingency plans.
  10. Environmental and Social Impact Assessment (ESIA): An ESIA report assessing the project's potential environmental and social impacts, including mitigation measures to address any adverse effects. This is required to comply with environmental regulations and secure financing from environmentally conscious lenders.
  11. Insurance Policies: Proof of insurance coverage for the project, including construction insurance, liability insurance, property insurance, and any other required insurance policies. This helps mitigate risks and protect lenders' interests in case of unforeseen events.
  12. Independent Reports: Independent reports from third-party consultants or engineers, such as technical due diligence reports, market studies, appraisals, and valuation reports. These reports provide an objective assessment of the project's technical and financial aspects.
  13. Loan Documentation: Loan agreements, security documents, and other legal instruments related to the project financing, including terms and conditions, covenants, security interests, and repayment schedules. This outlines the rights and obligations of the parties involved in the project finance transaction.

It's essential to work closely with legal advisors, financial consultants, and other professionals to prepare and review the necessary documentation for project finance. Providing comprehensive and accurate information helps build confidence among lenders and investors and increases the likelihood of securing financing for the project.