Should you take a Personal Loan for Business Use?

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Every business has its own financial needs. Whether it’s a start-up or a well-established business, everyone requires finance at some point nor the other. So how does one approach this? Does one take a personal loan for business use or opt for a business loan?

A personal loan for self-employed is at times preferred as it has a quicker disbursement rate when compared to a business loan. At SMFG India Credit, we have kept our loan disbursement process straightforward, hence it’s easy to get a loan.

Advantages of opting for Personal Loan for a Business

If one is yet to start their business, it’s generally preferable to opt for a personal loan, even though your business idea or the business itself may be one with a lot of promise or innovation, banks invariably tend to lean towards companies that have a positive track record as well as a complete set of audited financial statements (and other documents) going back at least 2-3 years.
It’s common knowledge that for a bank loan for business purposes, collateral is demanded, in lieu of loan given. As a start-up, you may not have any assets for your company to pledge, and thus you may prefer opting for a personal loan for business use to fulfill your financial obligations.
If the loan amount required is relatively smaller, we at SMFG India Credit advise you to opt for a personal loan. This is especially true if you plan to start a small business or operate as a self-employed professional.
Another major advantage of using a Personal Loan for business use is that no questions will be asked about how one uses the funds. A business loan is generally sanctioned based on the utilization plan of the funds and is more suited for people who run businesses with partners or require larger loan amounts.

SMFG India Credit provides personal loans up to Rs 30 Lakhs subject to fulfillment of eligibility criteria. With our flexible repayment facilities, one can repay loans within upto 60 months* after disbursement, no collateral is required and online access to one’s loan statement are among the many features that we provide. With competitive Interest rates on personal loans starting from 13%*, we strive to provide the most optimum deal to each of our customers as per their individual requirements.

Documents Required for a Personal Loan

We, at SMFG India Credit, believe in easing the process of obtaining a loan and quick loan disbursal, hence the documents required for a personal loan are minimal. These include:

Latest Photograph
PAN Card/Driving License
Address proof such as Electricity Bill
Last 3 months Bank Statements
Income Proofs

*T&C Apply

* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.