Dreaming of a business? How a Personal Loan can fund your first steps

If you are a businessman in the early stages of your venture, obtaining a Business Loan can be challenging, as banks typically require a solid financial portfolio, a thriving office, and a dependable income. Obtaining a Businss Loan endorsement can be challenging due to several reasons, including a lack of collateral, poor credit, low income, insufficient capital investment, or a start-up portfolio. Now, it is essential to extricate ourselves from this situation.

A Personal Loan helps entrepreneurs strengthen their business portfolio, making it easier to apply for a Business Loan in the future. Many expenses can be covered by a Business or Personal Loan to improve the overall venture. The points are as follows:

1. Infrastructure: You can use the Personal Loan to create a suitable work environment. This includes a manufacturing unit, office space, or a warehouse. These directly or indirectly impact the growth of your business.
2. Tech update: We are currently living in a world where technological advancements occur at every instance, and you require money to perform this transition in your venture. Applying for a Personal Loan can directly aid this requirement.
3. Expanding the business: Business expansion requires capital and does not assure success. There is a significant need for capital in this subject area, and a Personal Loan helps new entrepreneurs. Hiring employees also falls under the expansion, and there is a need for cash flow to hire new personnel. 
4. Marketing: You would require capital for your marketing strategy. This is an ongoing cost. A Personal Loan helps new entrepreneurs expand their reach both offline and online.

Personal Loan eligibility criteria

There are several Personal Loan eligibility criteria that you must meet if you need one. Your age should be between 21 and 60 years. You should be an Indian citizen who is either salaried or self-employed with a CIBIL score of 750 or higher. You should have a minimum of one year of work experience, with at least six months in the current organisation.

The minimum monthly earnings required for salaried individuals are Rs. 25,000 (Mumbai and Delhi) or Rs. 20,000 (for other Indian cities). For self-employed professionals, the minimum criteria for turnover and profit after taxes are per the policy applicable at the time of the Loan application.

Documentation and interest rates

Besides eligibility criteria, certain documentation is required to avail of an Instant Personal Loan from the lending institution, including PAN and address proof, income proof (such as salary slips and financial statements for self-employed applicants), and bank statements for the last six months. Personal Loan interest rates at SMFG India Credit start from 13% per annum.

The eligibility and final interest rate depend on various factors, including the lender’s policy at the time of Loan application.

Conclusion

There are several ways to obtain the best interest rate for a Loan. Improving your credit score, not missing instalments on existing debt, and comparing interest rates from different lenders can help you get the best offer.