It all started with the Digital India initiative where the start-ups weren’t given a push. A new line of youngsters have risen in India who choose to work independently then be in a secure, stable job of a top-notch company. These young minds have path breaking ideas & the perseverance to make it big. However only a few succeed in our dynamic world. A majority of these aspirants belong to a good academic background however find it difficult to manage it full-fledged. The greatest pain remains to be able to get enough funds for working capital & smoothly manage the day-to-day expenses like salaries, rentals, etc.
Why is small business loan required?
Whether it’s a start-up or a growing MNC, funds are the most important to run a business. it’s true that many start-ups get multiple rounds of funding if there is well accepted, on the contrary the funding received could be insufficient. For such young entrepreneurs, its best to get an instant loan for small business. Loan for business can be exclusively used to keep the business running. All top banks and NBFCs have come up with small business loans for start-ups and new ventures.
So, how do you know you’re eligible for a personal loan for business? this usually depends on the earning & risk taking capacity. Home Credit India provides personal cash loan which can also be used for setting up small businesses. Once you fulfil certain eligibility criteria, you quickly get loan money into your bank accounts. Home Credit has its own pre-requisites & checks before approving an application. However, the entire process can be completely online in a shot.
Read More: 5 Key Advantages of Online Banking for Small Business Set ups
Who are eligible for a Personal Loan for Small Business?
- Age Limit: In order to be eligible for a loan, borrower should be minimum 21 years & maximum 65 years.
- Collateral: No collateral guarantee is required for loan approval. This is the basic difference between a typical business loan & Personal loan applied to business.
- Personal Details: Fields like name, age, city, state, income, etc are required to get a loan approval. Only 2 documents are required to be updated, i.e. PAN card & Address proof. Now, you can also download Aadhaar XML to complete your KYC fast.
- Income limit- borrower must be earning Rs.10,000 atleast for eligibility.
Why choose Home Credit Loan over other Investments?
New business entrants can also look for VCs and Investment Firms are investing more in the start-ups, however for small business requirements like working capital personal loan suits best.
- Banks/NBFCs and their online websites are more approachable than venture capitalists
- Online personal loans don’t need equity dilution
- Online loans are quick & structured well for disbursement
- No profit/loss share comes into the picture
Every young entrepreneur must understand the different between business loans & small personal loans. A lot of technicalities are involved in getting a small business loan sanction, careful scrutiny of company status, existing funds & liabilities take place.
