Personal Loans For Business Purposes Can Help You Kick-Start Your New Business Venture
Are you a modern Indian entrepreneur wanting to taste success in your new business venture?
The main concern for you would be to arrange finances. As a start-up, you’ll need to prove your credentials before you can get a sizeable loan from any bank. In the meanwhile, you can avail a Personal Loan for business purposes.
That’s right: A Personal Loan can be used for business purposes as well.
In fact, you can use it for just about anything; medical expenses, travel expenditure, paying college admission fees for your child, meet wedding expenses, home renovation, buying household durables, and even to settle off any other outstanding debt.
The best part about a personal loan is that approval is independent of the reason you apply for one.
Features of a Personal Loan
- It is an unsecured loan, and does not call for any collateral
- Can be put to use for whatever purpose you have in mind
- Flexible repayment options
- Minimum documentation required
- Simple procedure to apply
- Quick approval time
These features make the personal loan the apt choice to meet your need for urgent funds. You can choose from the variety of personal loan offers from banks, depending on the interest charged. Being in the nature of an unsecured loan, the interest on personal loans are comparatively high.
Read on to understand how to apply for Personal Loan
You can apply for Personal Business Loans online. Being a loan on which no security/guarantee is demanded, the primary eligibility criteria is your credit score. To this end, ensure that you enjoy a good credit score before you apply for a personal loan.
Applying for a personal loan is quite a simple procedure. You make an application for the loan, and the lender—after verifying your credit score—will approve your personal loan at the prevailing rate of interest. You can negotiate for a favourable interest rate if you’ve consistently maintained a high credit score.
Eligibility Criteria
Salaried or self-employed, it doesn’t matter; either way, you are eligible for a personal loan. The primary criteria that determines your personal loan eligibility is your level of income. Most banks stipulate that your minimum annual income should be Rs.1,44,000 in order to be eligible for a personal loan.
As for the age criteria, you must be the age group 24-60 years (self-employed). You can take a maximum loan of Rs.15 lakhs as a personal loan.
If you’re taking a personal loan for a start-up, your personal Income Tax returns will have to be furnished. In case the loan is for business expansion, you’ll need to provide the lender a copy of the annual financial statements along with your IT returns.
Now that you’ve availed the personal loan, make the best use of it and kick-start your start-up venture.
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Category: Business Debt
