Bank Loan with Business License: Procedures and Documentation

Simplifying the Process of Finding, Registering, and Preparing Loan Documents to Increase Approval Chances for Individual Business Owners at Banks, Mytour has curated an article on how to borrow money with a business license. By reading the detailed content of the article, you will quickly find a loan suitable for your interest rate, loan period, purpose, and needs, and complete the loan documents in a short time.

How to Borrow Money from Banks with a Business License

1. What is Borrowing with a Business License?

After delving into the concept of borrowing from banks using a business license, in order to understand deeply and easily compare, differentiate the form of borrowing through a business license with other forms of borrowing, you can refer to the article 'Salary-based Loans' - which banks offer loans, procedures for borrowing as edited by Mytour earlier.

Concept, benefits when borrowing from banks through a business license

2. Interest rates for loans with a business license? Top banks offering low-interest loans with a business license

According to Mytour's survey, typically, the interest rates for loans with a business license at banks range from 7% - 12% per year, the loan limits range from 70% - 100% of the collateral value. In cases where the borrower does not have collateral, the interest rates for loans through a business license will range from 0.8% - 1% per month depending on the business item and loan period (average about 12 months - 60 months).

Specifically, the list of banks offering low-interest loans with a business license includes:

- Vietcombank Business License Loans: Providing 2 attractive loan packages, namely medium-term business loans: maximum loan amount of 5 billion VND, maximum loan period of 60 months, and prosperity business loans: lending up to 85% of the business plan, short-term loan period, maximum 12 months.
- BIDV Business License Loans: Competitive loan interest rates, supporting 100% of the business plan, long-term loan period up to 5 years.
- VPBank Business License Loans: No collateral required, loan limit up to 200 million VND, maximum loan period of 60 months.
- Sacombank Business License Loans: Unlimited loan amount, loan period, meeting the borrowing needs for production and business, purchasing machinery, equipment, construction, expanding workshops, etc., of borrowers.
- UOB Business License Loans: Unsecured loans, loan interest rate of 1.3% per month, loan amount from 50 million to 1.6 billion VND based on business efficiency on offline + online channels of borrowers in the past year.
- AgriBank Business License Loans: Mortgage loans with secured assets, average loan interest rate 11.5 - 12% per year, long-term loan period (up to 7 years). You can view the borrowing conditions in this Agribank capital borrowing article.

- In addition, some other banks are also implementing loans through reputable business registration certificates, low-interest rates that you can refer to are TPBank, Techcombank, MBbank, PG Bank, OCB, MSB, SHB,... Besides, readers should also explore the article which bank to borrow from for low-interest rates to quickly update, grasp loans at banks, and find the best borrowing solutions for themselves.

3. Conditions for borrowing through a business license at banks

Compared to other loan packages (home loans, car loans, personal loans, etc.), the process of preparing loan documents, conditions for borrowing from banks with a business license are somewhat simpler and more convenient. However, not all loan applications are approved and disbursed by banks. Therefore, to be able to borrow money based on a business license, you need to meet the following conditions:

- Being a representative of a business household or authorized by the representative of a business household to borrow, aged between 20 - 60 years old, having full capacity for civil conduct.
- Possessing complete documents proving the business activities of the household: Business registration certificate, documents, records of business activities, having a production location, other permits proving business activities (professional certificates, certificates of facilities meeting food safety and hygiene conditions, fire prevention and fighting certificates, etc.)
- Participating in business activities in fields such as agricultural production, product manufacturing, trading, grocery business, retail store, pharmacy, restaurant, etc. Stable and continuous operations for at least 12 months.
- Having a clear investment plan, business production; borrowing purposes suitable for industries, business sectors,...
- No bad debts at banks.

Conditions for borrowing money with a business license at banks

4. Procedures for borrowing from banks with a business license

Typically, to be considered and approved for borrowing with a business license at banks, you need to prepare a dossier, procedures containing the following types of documents:

- ID card or citizen identification card, permanent residence book or KT3 of the individual business registration.
- Certificate of business household registration, rental receipt for store/stall (if any), documents proving business activities of the household,...
- Loan request letter with capital utilization plan and repayment plan (according to the bank's template)
- Documents or receipts of tax payment to the state;
- Documents proving the purpose of capital usage and other documents (if any)
- Collateral dossier: Documents proving ownership rights, rights to use secured assets.

5. Process, how to borrow money from banks with a business license

To have a loan based on a business license, after finding a suitable type of loan and meeting the borrowing conditions, you need to make loan requests according to the instructions on how to borrow money from banks through a business license. Details are as follows:

Step 1: Submit loan registration request

At this step, you can directly submit a loan request through the bank's website system or contact the lending department at the local branch of the bank you live in for advice and guidance on completing the loan application.

Step 2: Receive loan application

After preparing all the necessary documents, you need to submit the loan application at the bank's lending department and wait for the bank to review and approve the loan application.

Step 3: Await loan application appraisal

With your loan application, the bank will be able to approve the loan, disburse it, or reject the loan.

In case the bank rejects the loan, you need to inquire about the reasons and find solutions.

Step 4: Await loan disbursement

After signing the loan contract, depending on your preference, the bank may disburse the loan amount into the borrower's account or disburse it in cash at the bank branch.

Guidelines on borrowing money through a business license at banks

6. Frequently asked questions when borrowing money through a business license

6.1. Can business households borrow money from banks?

Answer: 'Yes'. As analyzed above, the loan packages through business licenses are mainly for individual business households, sole traders.

6.2. How much can I borrow with a business license?

Depending on the capital utilization needs, the efficiency of business operations as well as the regulations on loan packages of each bank, the amount you can borrow through your business license varies. Typically, the amount borrowed through a business license will range from 200 million to 1.6 billion depending on the bank.

6.3. My loan application through a business license was rejected.

If your loan application through a business license is rejected, you can ask the bank's loan advisor for the reasons for the loan rejection. In some cases, the reasons for your loan rejection can be addressed and you can continue to borrow money. For reasons such as poor business efficiency, lack of collateral,... that cannot be addressed, you may consider other sources of funding such as borrowing from friends, relatives, or non-profit organizations,... Each method of borrowing will have its own pros and cons, and you need to carefully consider before borrowing.

Above, Mytour has shared with you detailed concepts, loan interest rates, a list of banks offering low-interest loans through business licenses. Hopefully, through this article, readers will grasp the overview of conditions, procedures, and how to borrow money from banks with a business license and quickly access the best support for their production and business activities. Wish you success.