It goes without saying, that when we are about to start or expand our business, we always need financial aid or some kind of business loan to initiate that process. If you are from a good financial background and can start your business from your own pocket then great, but if you are not capable enough to start your business on your own, then a personal loan for business can help you out to start or manage your business.
Here at plangrip, you will be knowing all the lucrative details regarding personal loans from applying to getting approval.
Brief Introduction Of Personal Loan For Business
Without knowing the proper information about a subject we can’t think about its further considerations or processes. So, let’s first understand what exactly personal loan is, as there are different business loans with different interests available for different purposes of your business.
Generally, the personal loan comes under the category of unsecured loans where you don’t have to provide your assets as collateral to banks or any other financial institution.
In order to qualify or get the approval of the personal loan, your credit history and income will matter most.
Personal Loan Processing
After fulfilling the required demands and getting approval for a personal loan for business, then you receive the entire amount of money in a single payment which you must repay with fixed monthly installments over time.
Benefits For Acquiring Personal Loan For Business At Lowest Interest Rates
- You will be availing loan with less interest rates
- No lengthy procedure is required to fill the application form
- Women entrepreneurs can also avail the loan
- As we told you earlier that, a personal loan is a type of unsecured loan where you don’t have to give you any assets as collateral to the bank.
- It includes less qualifying criteria
- It can be easily approved
- Pocket-friendly Repayments
- Pre-approved applicants will be approved under 10 seconds with no extra documents.
Some Significant Factors Will Matter Most For Approval Of Personal Loan
- Your business history
- Requirements for personal loan
- Annual revenue and Income will be asked
- Business credit score will be required too by the lenders and in order to avail the loan you should have a minimum credit score 580 and 600
- Ability to afford interests rates
Important Documents you must keep in your hands while applying For Personal Loan
Here we have listed the most crucial documents or papers that you will need for a personal loan and also we have categorized required documents for salaried and self-employed people in order to avail of the personal loans.
For salaried person
- In order to avail of a personal loan, you will be required to submit or show your identity proof which will include your Passport, Driving License, Voters ID, PAN Card, and Adhaar Card.
- Your residency proof will also be required for personal loans like Leave and License Agreement, Utility Bill – not more than 3 months old, or Passport.
- Recent bank statements up to 3 months
- Salary Slips for the last 3 months
- Recently clicked 2 passport size photograph
- Financial documents such as profit and loss account, balance sheets certified or audited by a CA.
- KYC Documents such as Proof of Identity, Address proof, DOB proof.
- Proof of Residence – will be Leave and License Agreement, Utility Bill (not more than 3 months old, Passport.
- Income proof for the last two years.
- Latest 6 Months Bank statement.
- Office address proof
- Proof of residence or office ownership.
- Proof of continuity of business.
Some Lucrative Facts For Which You Should Use Personal Loan To Start Or Expand A Business
- Cashflow is something that you can not take it for granted or we can say it is the backbone of your business. Moving or flowing money in and out of business in the form of payments and taxes is all about cashflow which you can increase by obtaining a personal loan.
- Flexibility to select tenure
- Considered good for credit cards repayments
- Have a fixed rate of interest
Check If You Are Eligible Or Not To Obtain Personal Loan For Business
As you can guess with the above-mentioned heading to check if you are eligible or not. Yes, there are mostly used online tools available on the internet to check eligibility for obtaining personal loans.
- Your minimum age must be under 21 – 28 years only
- Maximum age limit –Applicant should have maximum age 58 – 65 years
- Employment status –You must have 2 – 3 years in business
- Minimum income –$144.03 and above
- Work experience –Minimum 1 to 2 years is also required
- Business profit –Net profit of at least $720.15
- Applicant profile –you should be working in any registered company.
- An amount of 1 lakh to 10 lakh will be offered.