For a business to be successful, it must be sustainable and adaptable to change. If you are a start-up or a small business planning to grow and expand your operations, then availing of a personal loan for your business needs is the right solution.
This article will help you understand what a personal loan is and how availing of one can help you fulfil your entrepreneurial dreams.
What is a personal loan?
A personal loan is an unsecured loan to fulfil various financial requirements, be it medical emergencies, wedding plans, vacation or business needs. Since it is an unsecured loan, you need not submit any collateral. As a result, lenders usually check your credit score and monthly income to determine your creditworthiness. If you want to apply for apersonal loanfor your business needs, you can use Buddy Loan with interest rates starting from 11% per annum.
Reasons for which you can apply for a Personal Loan for business requirements
Launching your new business
You can use a personal loan to start your new business. When starting a business, it will help you handle your overhead costs, such as advertising, labour charges, utilities, supplies, etc., when starting a business.
Expanding your existing business
It requires a tremendous amount of capital investment. It includes hiring new employees, upscaling the products, expanding productions and operations, etc. You can take abusiness loan to fulfil these expenses in such a scenario.
Updating your equipment and machinery for business
With the constant technological change, you must keep your business updated to the current demand. Moreover, updating the technology and buying new equipment or machinery can be a massive cost to your business. To aid this financial situation, you can avail of a personal loan.
A Marketing strategy helps a business build its brand, attracting more customers, and it plays a significant role in bringing profits to the company. However, a good marketing strategy comes is an ongoing cost, and you can take a personal loan to curb those expenses.
Benefits of a Personal Loan for business needs
Here are the benefits and features of an availing of a personal loan for business requirements:
- Zero hidden Charges.
- No Collateral
- Instant approval of the loan
- Minimum Documentation for KYC.
- Flexible Tenure of loan repayment from 6 months to 60 months.
- Get loan amount within 24 to 48 Hrs of approval.
The following table shows the Personal Loan eligibility criteria:
|2||Age||21 to 60|
|3||Employment Status||Employed or Self-Employed|
|4||Minimum Income||INR 20,000 per month|
|5||Work Experience||Min 1 year completed|
|6||Credit Score||Above 750|
The following table shows the documents to be submitted for Personal Loan for self-employed.
|Sl. No.||Particulars||Documents required|
|1||Proof of Identity||Aadhar Card, PAN Card, Driving Licence, Passport|
|2||Proof of Address||Aadhar Card, Electricity Bill, Water Bill, Passport|
|3||Proof of Income||Bank statement for the past three months Salary Slips of three months Income Tax Returns for the last three years Balance Sheet and Profit & Loss Statements for the last three years audited by a CA.|
It can be quite challenging to sustain your business in a competitive world. It requires constant innovation and upgradation in technology to stay ahead of your competitors. However, it can overwhelm you to handle the cost of sustaining your business. The best solution is to take a personal loan to meet these expenses smoothly.