Should I Take a Personal Loan to Fund My Start-up?

Start-up culture has taken the whole world by storm. You can see in almost every country that a number of young, budding and aspirational entrepreneurs are coming up with ingenious ideas which have the potential to change the face of this world. They are being encouraged by governments as well as private sector entitiesthat are nurturing them and guiding them through the difficult growth path.

Some of the start-up owners manage to start their operations through personal funds of the founders or some manage to procure funding from Venture Capitalists (VCs). The fact of the matter is that it is not possible to get a start-up venture going if you do not have adequate funds in the first place. There are various options at your disposal when your start-up has reached a promising stage,but when it comes to funding for the starting up the stage, there are not many options that can be pursued. If you are also facing such a dilemma, then you must take a Personal Loan to fund your start-up.

What are Personal Loans and how to apply for them?

Personal Loans are a form of unsecured lending extended by various financial institutions in India. As these loans do not require any collateral to secure the loan amount, they can be easily used for any purpose that you may deem fit. There is no need to inform the lender regarding the end use of the money borrowed as a Personal Loan. You can use the loan amount for any requirement that you may have. The repayment tenure can extend up to 60 months. The amount available as Personal Loans can go up to Rs. 50 Lakhs, making them ideal for funding your start-up venture or meeting any other business related or personal expenses. So, you must take a Personal Loan to meet your funding requirements at the start of your venture.

How to apply for a Personal Loan?

With the rapid integration of technology in the financial services sector, it has become really convenient to apply for a personal loan. If you are thinking about How to Apply for a Personal Loan,then there are two options that you can avail, offline and online. The online method of application for the PersonalLoan is fast becoming the most popular option for prospective borrowers. You can compare different loan offers from multiple lenders conveniently and then apply for the most suitable loan product according to your requirements.

You can either apply directly through the company website or use online finance marketplaces to apply for the personal loan to fund your start-up venture. When you applythrough the online channel, you need to fill up a simple application form with essential financial and personal information. If your profile meets the criteria specified by the lender, then your application would be approved instantly, and the amount will be credited to your account within a few hours of signing the loan agreement.

Why must you take a Personal Loan to fund your start-up?

There are various benefits of availing a Personal Loan to fund your start-up venture as compared to other means of finance available in the market. Some of the significant benefits that you get are as follows:

  • Easy availability

Personal Loans are being offered by a number of lenders in the market to help you finance any personal or professional requirement. If you have been having a regular full-time job and receiving a steady paycheck, then your application for a Personal Loan would be approved easily.

  • Flexible to use

The best part about a Personal Loan is that you need not submit any detailed business plans or information regarding usage of the money. The amount is credited directly to your account,and you can use it for any financial requirement that you may have, without any need to inform the lender.

  • No security required

Personal Loans are unsecured in nature, as such you do not need to pledge any security with the lender to secure the loan amount. As no security is involved, these loans are processed really quickly, and the amount is usually credited to the bank account within 24 hours.

  • No interference by the lender

There is no interference from the lender in the day to day operations of the venture and neither do you need to partake with your ownership stake. You just need to repay your EMIs (Equated Monthly Instalments) on time to keep enjoying the flexibility offered by Personal Loans.

  • Only personal credit score required

Another benefit that these loans offer is that it does not matter if your business has any credit history or not. The loan application is processed based on your personal credit score and credit history. So, if you enjoy a credit score inthe north of 700, then you will not have much difficulty in availing the loan.

Being the owner of your own start-up venture is one of the greatest feelings in the world. By using a Personal Loan to finance your funding requirements, you can infuse the necessary capital in your venture and then conveniently repay the amount in easy monthly instalments.

Also Read:Need an Instant Loan? Choose MyMoneyMantra

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