Personal Loan for Business

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Personal Loan for Business Purposes
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Why Personal Loan for Business?

• Personal loans have no restriction on the
  spending of money.
• You can use it for holidays, marriage, home
  renovation, education, and even business.
• Yes, you can take a personal loan for business
  purpose also.
• You can spend this fund for starting your
  business or meeting daily business requirements.
• Many people who are not eligible for business
  loan or are in some urgent need of money use
  personal loans for business.

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How can you use a Personal Loan for Business?

• Expansion of business
• Starting a new business Well, the personal loan
  has also become a great way to start a new
  venture. However, you must take the interest rate
  into account while availing it.
• Funding daily business needs Cash crunch may
  occur any time and you may not have enough funds
  to manage daily expenses of your business. For a
  temporary basis, a personal loan to fund your
  daily needs will help your business. Once funds
  are available, you can repay the amount in full
  and avoid making a dent in your credit score.

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How can you use a Personal Loan for Business?

• Paying off old debts to take a business loan
  Business loans are formulated especially for
  business purpose. However, banks only offer
  business loans to those who have a good track
  record of repayment and CIBIL score. In case one
  fails on these aspects, then you need to
  restructure your previous records. A personal
  loan at this stage can help you to clear the old
  debts and bills, which will eventually help in
  rebuilding the credit score.

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Things to keep in mind before taking Personal
Loan for Business

• Higher Interest Rate Availing a personal loan
  for business purpose comes at a higher rate of
  interest. It is recommended only when you can
  repay the loan on time. Failure of doing so will
  add a burden to you and will also impact your
  credit score.
• Check your CIBL score While the personal loan
  may look lucrative, but you can only get this
  loan if you have a good credit score. Banks often
  check the credit score to analyze your
  creditworthiness, and based on this score, they
  approve or disapprove the loan.
• A hassle-free loan People opt for a personal
  loan for business as no security needed. Thus, it
  makes easy for the business owner to get a loan
  for business purpose without the burden of any
  collateral.
• Flexible repayment

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Personal Loan Vs Business Loan

1. Business loans can only be availed by those who
   have a pre-established business which is least a
   few months old. But that is not the case with a
   personal loan. The bank only looks at your credit
   score and supporting documents to approve your
   personal loan. Personal loans have no restriction
   on the spending of money, including the start of
   a business.
2. Besides, business loans are of a higher amount,
   which is not the case with a personal loan. There
   is a cap on the loan amount. So, you can get only
   limited money which you can use for managing your
   office expenses or other costs.

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Wrapping it up

• Personal loan for business is a good choice, but
  you must take into account the pros and cons
  before applying for the same.
• Check with the banks and compare their interest
  rates before applying for a personal loan.
• You should also make sure to contact those banks
  first with whom you already have banking
  relationships as there are fair chances of
  getting personal loans at relatively lower
  interest rates.

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Thank You !!!