• Custom Free
     

    Custom quote

  • Personal Loan for Private Sector

    Loading your search...
  • Are you interested in setting up a business in the private sector? Most people who dream of starting a business consider only one category of loans and they are business loans. Banks offer business loans exclusively for starting a business. Business loans generally comprise of high loan amounts and they take very long to get approved due to lengthy processes. You can instead take a personal loan to fund your business activities in the private sector.

    Advantages of taking a Personal Loan for your Business

    Let us discuss some of the key advantages of applying for a personal loan for your business:

    • A personal loan is more cost-efficient when compared to its alternative: business loan.
    • Personal loans can be repaid on a monthly basis at lower rates of interest as opposed to conventional business loans.
    • The minimum revenue requirement for a personal loan is much lesser compared to the requirement for a business loan.
    • Personal loans are the right choice for individuals with minimal business history.
    • Personal loans are good for business people who have a poor credit score.
    • You do not have to give any collateral to your loan provider when you need a personal loan.
    • When you take a personal loan, the bank will not interfere in your business or impose restrictions on the functioning of your business.
    • The availability of personal loans is higher than business loans for new entrepreneurs in the private sector. Most banks are reluctant to give business loans to start-up companies.
    • There is lesser paperwork for personal loans.
    • Personal loans come with flexible repayment options.
    • Personal loans can be paid in equated monthly installments.

    How can a Company in the Private Sector use a Personal Loan?

    Let us take a look at some of the ways a business can fund its activities with a personal loan:

    • If a sole proprietor or a partnership firm wants to start a business, they can apply for a personal loan and procure it without much delay. Sole proprietorships and partnership firms generally will have a low budget during the initial period of the business. Hence, a personal loan is ideal for this kind of budget. They will incur lower costs with a personal loan.
    • A personal loan is great even for a large company. The company can fund its production and marketing activities on a small or a medium scale with a personal loan.
    • Companies of all sizes can finance their needs such as office property, office accessories, office furniture, and so on.
    • Personal loans can be used to fund activities such as hiring and recruitment of manpower in the private sector companies.
    • If an established business wants to fund its expansion projects or brand new projects, it can apply for a personal loan. A company can recreate its whole business strategy with a personal loan by planning wisely.
    • When a company with lesser years of experience in the industry, is denied a business loan, a personal loan is a superb choice.

    Best Banks that offer Personal Loans in India

    Let us view some of the top banks that offer personal loans in India:

    • ICICI Bank
    • Kotak Mahindra Bank
    • Fullerton Bank
    • HDFC Bank
    • SBI
    • Yes Bank
    • IndusInd Bank Ltd
    • Standard Chartered Bank

    When you are planning to start a business or expand your business, you need to be aware of all the risks associated with it. Taking a personal loan is a brilliant less-known way to capitalise the endless requirements of your company in the private sector.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.