Are you running a partnership firm and looking to secure funding for your business growth? A secured business loan could be your best option. Backed by collateral, these loans come with better interest rates, higher loan amounts, and flexible repayment options. However, to get your loan approved smoothly, you must prepare a complete and correct set of documents.
In this guide, we’ll walk you through the exact documentation required by banks and NBFCs (Non-Banking Financial Companies) when applying for a secured business loan as a partnership firm in India.
📄 Documents Required for Secured Business Loan – Partnership Firms
1. ✅ KYC of the Firm and All Partners
Your identity and legitimacy matter. The first step is submitting valid KYC documents for both the partnership firm and all its partners.
Includes:
- PAN Card of the firm and partners
- Aadhaar Card or Voter ID of partners
- Passport-size photographs
- Partnership deed
2. 💼 Business Registration Documents
You need to provide proof that your business is registered and legally recognized.
Includes:
- GST registration certificate
- Date of incorporation or registration certificate
- Shop establishment license (if applicable)
- MSME/Udyam Registration (if available)
3. 💰 Income Proof – ITR & GST Returns
Banks want to assess the financial health of your firm before lending.
You must submit:
- ITR (Income Tax Returns) of the partnership firm for the last 2–3 years
- GST returns to show sales and turnover consistency
4. 🏦 Bank Statements
Financial institutions require bank statements to evaluate your cash flow and average monthly balance.
Required:
- Bank statements of the firm for the past 6 months to 1 year
5. 🏠 Collateral Documents (Property Papers)
This is what makes the loan “secured.” The property can be:
- Residential property
- Commercial property
- Factory premises
You must provide:
- Sale deed of the property
- Latest property tax receipt
- Khata certificate and Khata extract (for Bangalore-based properties)
- Approved building plan
The property should be clear-title, dispute-free, and owned by the firm or one of the partners.
💡 Why Choose a Secured Business Loan?
- 🔐 Lower interest rates compared to unsecured loans
- 💸 Higher loan amounts based on property value
- 📆 Longer repayment tenures
- ✅ Better approval chances if documentation is proper
🔍 Final Thoughts
A secured business loan is a powerful way for partnership firms to access substantial capital. However, your documentation must be complete, verifiable, and updated. Banks and NBFCs conduct thorough due diligence, so getting this right is crucial for fast approval.
📈 Need help preparing your documents or applying for a loan?
👉 Follow Shivafinz for expert financial advice and professional loan assistance.