A personal business loan is a personal loan for business. It comes to your rescue when other financing options are not working in favour of your business venture. It may not be possible for everyone to get a business loan as it can often have many limitations and rigid eligibility criteria. However, with unsecured, collateral-free personal loans, you can overcome such hurdles that come in your way of funding your start-up or expanding your business.
Opting for personal business loans has its own advantages. Unlike traditional business loans, which require a tedious amount of paperwork, these have a streamlined application process. Hence, personal loans are ideal when you have a limited window of time to secure funds. Additionally, the process requires minimal documentation. The entire process can be done through the lender's website or their mobile app. This eliminates the need for any physical paperwork. You don’t have to visit any bank or a financial institution either.
One of the main features of business personal loans is that they are unsecured. They don't require collateral or a guarantor. Even though the interest rates are relatively high compared to secured loans, the convenience and speed of accessing funds without collateral make them a go-to option for those in dire need of some funds to finance their business.
Another common positive feature of taking a personal loan for business is that it offers a range of loan amounts to suit different financial needs. The repayment tenure can typically range from a few months to a couple of years. This flexibility allows small business owners to apply for loans depending on their needs. Moreover, they have a repayment tenure that caters to your financial circumstances as well.
Business loans are not accessible to everyone. Many lenders have set stringent eligibility criteria and lengthy, time-consuming procedures for granting business loans. Adding to this issue, entrepreneurs are often not granted loans because of insufficient credit history, lack of collateral, market or industry risks, insufficient documentation, etc. Business personal loans, on the other hand, are easy to apply and acquire. They can be used for a variety of purposes, including funding a business venture or covering business expenses.
When considering taking a personal business loan, you shouldn’t forget to consult a financial advisor or small business expert who can also provide valuable guidance in choosing the right financing solution for your business. Fi Money provides instant loans through licensed partner Federal Bank, that arrive directly in your Savings Account. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank assigns an eligible loan amount to each user (up to ₹5 lakhs).
You have to be at least 21 years old. Your business must be registered legally and have a good financial track record. To get a business loan, you typically need to fulfil many other requirements like documentation of tax returns, financial statements, ID proofs, etc.
You can use a business loan to finance day-to-day operations, expand your business, increase production, for marketing and promotions, develop new products, technologies, etc. You can also consolidate multiple high-interest loans or debts into a single loan with a lower interest rate.