5 Ways to Use a Personal Loan for an Online Business

It is expected that India’s e-commerce sector will be worth an impressive $ 150 billion by 2022. By 2025, there will be more than 200 million online shoppers. So if you are running an online business, you can imagine the growth potential that lies ahead.

There would be instances when you would need access to funds for scaling up your venture. Other than your savings or getting your family and friends to invest, getting a personal loan for online business is possibly one of the easiest funding avenues rather than going for a more complex business loan.

Here’s how an instant personal loan from SMFG India Credit can benefit when you start your online venture.

1. Meet Your Working Capital Needs

The process to apply for a personal loan from SMFG India Credit - is quick and easy. The application requires minimal paperwork, most of which can be completed online. You can apply for a loan of up to INR 25 lakhs at competitive interest rates starting from 13%*.

SMFG India Credit’s personal loan is one of the easiest ways for newly launched online businesses to meet their working capital requirements such as rent, overhead salary, utility bills and inventory management. Generally, post the verification phase, the loan is approved and disbursed within a period of 24 business hours. Therefore, it is one of the most convenient ways for business owners to tide over their immediate financial requirements in a short time span.

2. Be Financially Liquid

As opposed to business loans, you can apply for a personal loan at SMFG India Credit for your virtual business enterprise without having to put up any collateral or third-party guarantee. Since any new business - be it online or otherwise - comes with its share of risks, not having to sign off or block precious assets as security for a loan can be a blessing.

Therefore, with a personal loan, you can be financially flexible and liquid to a significant extent which undoubtedly is a huge benefit. Plus, if you plan to expand your business operations in a few years’ time, upscale production, launch new product lines or open new divisions, a collateral-free personal loan can give you wings to fly.

Must Read: 5 Simple Ways to Choose the Right Personal Loan Tenure

3. Upgrading Technology

If your online business picks up, your technology requirements could change overnight. You may need to invest in larger servers and expensive applications. You may also need to make additions to your IT department. These activities may require you to arrange for additional funds within a few days.

You can rely on us to provide you with a personal loan. Our documentation process is hassle free and we disburse loans quickly so that you can go about upgrading your technology.

4. Hiring Temporary Resources

During festive seasons, there might be a spike in your online business. Higher number of orders would mean arranging for more staff members to pack the items that are due to be shipped. However, it may not make sense to hire full time employees during this phase. Instead, you could hire temporary workers to help with packing the orders. These temporary workers may be required only for a few days and you would quickly need funds to clear their wages.

By availing a personal loan from us, you can do just that.

With a fairly quick processing time, with verification of just your credit history and income, no collateral requirement or third party guarantee, you can launch your online business in no time at all.

5. Meet Operational and Marketing Expenditures

Personal loans by SMFG India Credit are ideal when you need urgent funds to replenish inventory to keep up with consumer demand, to upgrade the plant and machinery, purchase raw material, invest in infrastructure, hire new employees or even to market your online business. The personal loan for self-employed can help you take care of your ancillary expenses, for example, insurance, compliance or regulatory requirements, partnership fees, etc.

For new business owners, it can be a challenge to manage cash flow in the first year of operation. If you require a line of credit rather than a loan so that you can withdraw the amount you need when you need, you can opt for SMFG India Credit’s Loan against securities. However, if the amount you need is small and less than INR 30 lakhs, a personal loan may be a better choice.

Must Read: A Guide To Get Personal Loan Using Aadhar Card & PAN Card

How to Apply for a Loan?

To secure a personal loan from SMFG India Credit, follow these structured steps:

1. Access our website www.smfgindiacredit.com or click here to initiate your loan application.
2. Fill in your essential details such as mobile number, PAN, pincode, and specify whether you're salaried or self-employed.
3. Complete the mobile verification using an OTP and ensure that your email ID is verified as well.
4. Enter your email address, birth date, gender, and details regarding your income and employment history.
5. Assess the loan offer prepared for you. This includes the amount, fees, and repayment details. When you are sure, confirm your acceptance and decide if you wish to apply for a higher loan amount. You will get an option for this.
6. Provide employment-specific details if you're in a salaried position.
7. Use well-known methods such as CKYC, OKYC, or DigiLocker to complete the digital process for verifying your identity and address.
8. Input your bank account information. We will verify your bank details, after which you can proceed to the ‘Additional Details’ section. Here, we will require some details such as your father’s name, mother’s maiden name, reference information, etc.
9. Choose between a debit card and internet banking for your payment mode and set up eNACH.
10. Review and sign the loan agreement digitally, finalising it with an OTP verification.

Completing these easy steps will get you closer to achieving your financial objectives with a personal loan from SMFG India Credit.