How to Get a Personal Loan For Your Small Business
As an entrepreneur, running your own business involves shouldering a great deal of responsibility, most of which boils down to ensuring that you have the financial muscle to cater to all business needs. Whether it is paying utility bills, hiring skilled staff, or purchasing new machinery to stay abreast of the latest technology, having ample capital is of paramount importance. While you can rely on the revenue you generate to take care of regular expenses, availing an instant personal loan financing can be considered as an option when you need to bolster your supply chain or plug monetary gaps quickly.
When doing so, it’s important that you evaluate the personal loan interest rates attached to offerings and also, determine the quantum of funding you need accurately. This ensures that your profits outweigh your outgo at all times. To help you obtain funding on favorable terms, here’s a rundown on how to get a personal loan for a small business.
Chalk out your business plan keeping in mind the loan structure
Personal loans are convenient as you can use them for any purpose you desire and need not pledge any collateral to avail of funding. That said, you shouldn’t apply haphazardly as the cost of borrowing a personal loan can be relatively high. One way to determine the maximum amount of funding you can get is by using a personal loan eligibility calculator. This online tool computes the total amount you are qualified to borrow based on factors like your income and outgo.
After figuring out how much funding you are eligible to get, fine-tune your requirements by determining how the loan will fit into your business plan. Two main factors to zero in on here are the sanction and the repayment tenor. When combined with the personal loan interest rates offered, these parameters govern the EMIs you pay each month. You can use the personal loan calculator to forecast your monthly outgo and tweak figures on it to settle on the loan structure that works best for you. For instance, large EMIs may hinder the working capital you have at hand, but small ones may mean unnecessary interest outgo. The key is to opt for the loan structure that’s most profitable.
Meet your preferred lender’s eligibility criteria
Whether you are applying for a regular offering or an instant personal loan, meeting your lender’s eligibility terms is the first step to avail funding. Most lenders require you to have a credit score of around 750, as this reflects your creditworthiness and speak for your ability to finance debt on time. Apart from the credit score, lenders enlist certain age and income-related criteria, based on which they evaluate your eligibility for the loan. Keeping this in mind, look for a lender that qualifies for a loan of your choice basis easy-to-meet personal loan eligibility terms.
Make an application and produce the necessary documents
Documents serve as proof of your eligibility and so, the faster you arrange them, the sooner your lender will approve your application. As financial needs for businesses tend to be urgent, choose a lender that has a minimal requirement for personal loan documents and keep them at hand even before you apply formally.
For the same day disbursal and minimal documentation required, you can apply for a Bajaj Finserv Personal Loan and get financing of up to Rs.25 lakh in just 24 hours. The personal loan interest rates here are competitive and further, you can choose to repay your loan over a flexible 60 months tenor. You can even opt for the Flexi loan facility and obtain funding on the go. Thanks to this feature, you can bring down your EMIs by up to 45%, by choosing to pay interest-only EMIs. Also, you can check.
To avail instant personal loan financing, check your pre-approved offer from Bajaj Finserv. Single-step verification here gives you hassle-free approval and access to financing via a customized deal.