A personal business loan is what it sounds like - it is a Personal Loan that is used for business purposes. Personal loans for businesses can be especially useful for new businesses that do not have an established record. If you are a business owner in this situation, personal business loans usually have lower interest rates than most other business loans you can qualify for.
The Benefits of Personal Loan for Business
Easy to qualify: The main reason you are probably looking for a personal loan for your small business is because you cannot get a traditional business loan. With a personal business loan, Indiabulls Personal Loan will look at your financial background, not your business.
So, if you have a good credit score and income, you will probably have an easier time getting a personal loan for your business than you would with a traditional business loan. For this reason, personal business loans are often very attractive to start-up capital.
Collateral/Security is not required: Many personal loans for businesses are usually unsecured - which means you do not need to provide collateral on your loan agreement. Most business loans, on the other hand, are secured with some form of collateral, whether a physical asset or a personal guarantee.
Low APRs (Annual Percentage Rate): Because your financial history is more powerful (or more established) than your business's financial history, Indiabulls personal loan for a business may give you more favorable terms than a traditional business loan.
Usually, you will see interest rates start as low as 5.99%. You will also receive a fixed payment schedule with monthly payments (as opposed to daily or weekly) as well as longer payment terms.
While certain types of business loans can only be used for certain costs, Indiabulls personal loans for business usually give you less flexibility in terms of where you can spend money.
Challenges of Using a Personal Loan for Business-
You can't create a business credit: Because a loan is not tied to your business, a personal business loan cannot help you build your credit score in the business - this can limit your ability to secure a business loan in the future.
Low loan rates: Personal loans are smaller than a business loan, which means you may not be able to get all the money you need to cover the costs.
Applying for the personal loan-
You can apply for Indiabulls personal loans online, they are an organized and efficient application process, they only need a handful of documents in the application itself.
Documents that you require to apply for the Personal loan:
Driver's license
Credit points
Bank Account Number
Pay Stubs / W-2s
Personal Return
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