Personal loan is taken to overcome difficult situation when you need funds pronto. Personal loan is taken to meet emergency expenses when we don’t have money in hand. One of the main reasons why personal loans are quite popular among people is that it gets quickly approved. When it comes to meeting urgent financial needs, a personal loan is an ideal borrowing option that you can look for. The loan is quite popular among people as it can be used for almost any number of reasons. Besides being flexible, the loan gets processed quickly especially if you apply for it following the online procedure. Unlike the popular belief that personal loans are only offered to salaried professionals, this flexible loan option is available even for self-employed individuals. Personal loan interest rates for salaried professionals might be slightly different from what is offered to self-employed individuals but the latter still gets the well-deserved loan benefits.
Merits For Sole Proprietors Who Avail Personal Loans
In personal loan, there is no restriction on how the loan amount can be used. There is ‘n’ number of reasons to apply for personal loan. Be it business expansion or buying new computer systems, banks and NBFCs (Non Banking Financial Companies) have no issue with your reason till it is legit and does not go against their interest, i.e. to get loan amount on time.
One of the main reasons why personal loans are quite popular among people is that it gets quickly approved. As compared to most loans, personal loans offer faster loan approvals. If the loan applicant is eligible, has all the required documents and good credit report, his/her loan application will get approved in no time.
Choice to use collateral
Personal loans are unsecured loans but can also be used as secured loans. If you are not getting loan approved on the required loan amount, don’t be disappointed as you can still get what you need. Just give the sufficient amount of collateral or security to your lender and get the required loan amount from the lender.
It is a thing of the past when documentation process for personal loan or any loan for that matter used to be complex. Especially since online personal loan applications are now being accepted. Banks and NBFCs have made the documentation process quite simple for everyone.
4 Best Startup Business Loan Options
1.Rollover for Business Startups (ROBS)
A Rollover As Business Startups (ROBS) helps you invest funds into the new business from your retirement account without paying income taxes or withdrawal penalties. There are no loan payments and the business takes on no debt.
2. Personal Loan from a Peer-to-Peer Site
Peer-to-peer (P2P) lending lets you borrowing money through an online service that matches you directly with individuals and institutions. Lending Club is the largest P2P site that connects borrowers to investors in a matter of minutes.
3. Small Business Credit Cards
Knowing how to establish credit for your small business can be tricky. On one hand, you need a track record to secure financing. On the other hand you also need seed money to cover start-up costs. The good news is that there are several ways to establish credit that can set your business up for success.
- Know your personal credit score and clean up any problems to show lenders you’re a good risk.
- Open a credit card and other accounts in your business’s name to create a track record of payment. Be sure to pay on time.
- Build trust with vendors by paying promptly. This is important because other vendors and leaders ask for recommendations when extending credit.
- Check your credit scores periodically to identify and correct any problems to eliminate roadblocks when you need additional financing.
4. Equipment Financing
Equipment loans are relatively easy to qualify for, and the amount of money you’ll be eligible to borrow is based on the type of equipment you’re planning to purchase, and whether it’s used or new. Equipment financing is used for vehicles, machinery etc.