Should You Take a Personal Loan for Your Business Plan?

By Kishore Sabareeshan | August 9, 2018

Brilliant business ideas come once in a purple moon. If you’re hesitant about funding your idea with a Personal Loan, here are some reasons that may change your mind!

Should You Take a Personal Loan for Your Business Plan?

It’s a wonderful thing to be a young dreamer. Entrepreneurial ideas can strike you when you least expect them. Some of them drift away, while a few (very, very few) stay with you for life. So, what do you do when you have a rock-solid business idea that looks quite promising? Are you ready enough to get off your corporate wagon and start off your solo journey into the business world?

Keep in mind that there’s one basic requirement you’ll need to meet before turning your idea into a reality; financial investment. Yes, you’ll need to fuel your start-up idea with money to get it up and running. This, obviously, poses a major question…

What’s the best way to do this?

Should you touch your hard-earned savings? Maybe not. Should you withdraw your PF and invest it all in your new business? Hmmm, maybe not, again.

 “Ok, I’m running out of options now!”

Not quite, my friend. Have you considered taking a Personal Loan for your business?

“Uhm…I don’t know if that’s a good idea!”

Fair enough. That’s why we’ve come up with a list of awesome reasons why you should go ahead and get a Personal Loan for your business needs.

Your savings remain undisturbed

We understand how disheartening it can be when you’re forced to dig into your hard-earned savings and investments, no matter what the reason is. With a Personal Loan on your side, you won’t have to even think of reaching out for that savings amount – save it for the future.  It’s a simple calculation, really. Check if the return that you expect to get from, say, a Mutual Fund you’ve invested in is greater than the interest you will pay on a Personal Loan. You have your answer right there!

Loans help you seize the opportunity

It’s uncommon for the ideal situation to the present itself every now and then, so if you’re thinking of putting off your business idea purely due to short finances, think again. When you consider funding a Personal Loan for your business, you allow your ideas to bloom in a much more organic way without hindering its timing – you may never be in the same frame of mind a few years from now!

As long as you have enough conviction and drive to lead your idea into action mode, you can be sure to make enough money to repay your loan without hassle in the coming years.

Reasonable interest rates and fixed EMI

Personal Loans have fairly reasonable rates of interest. Moreover, once you’ve frozen on your loan tenure, you can be sure about the EMI amount you’re going to pay every month; now that’s reassuring because it can help you plan your finances accordingly, which in turn can also help you plot out your break-even point.

Additional Reading: 8 Reasons To Take A Personal Loan To Boost Your Credit Score

Quick processing  

Thanks to the digital world, you can get your Personal Loan application processed on BankBazaar.com within 24 hours. This means you don’t need to worry about postponing your business launch date in fear of a delayed loan application process. What’s more? Based on your eligibility, you can choose from a variety of loans from different banks as per your requirement.

Explore Personal Loans

Flexible loan tenure

One of the best things about a Personal Loan is its flexibility in payment terms. For example, let’s say you’re about to take a loan of Rs, 1,00,000 for a short-term project. You’re presented with different loan periods; you can choose one that suits you best from the options given to you. If you wish to close out your loan fast, you can choose to go for a higher EMI amount and seal the deal in, say, two years. On the other hand, if you need more time to repay, you can spread it out over three years and pay smaller EMIs; it’s up to you! (Keep in mind that tenure options differ with every loan)

Additional Reading: Personal Loan Pitfalls To Avoid

Enables you to grow entrepreneurial wings when you’re still young

If you ask people from your dad’s generation about starting a business venture, they’ll probably advise you to do it once you’ve worked for 10 to 15 years, saved enough money to invest in a business, and secured important assets like a house of your own and what not. Our generation’s approach towards life, however, is slightly different. Most of us want to take the risk of leaving a secure job and daring to stand on our own two feet.

This is where a Personal Loan can help. It can give us the confidence to become independent without thinking about accumulating savings over a decade. Besides, the business world is much faster than it ever was before, so it makes sense you let your idea out while it’s still economically and socially relevant, and this is why you should take that loan and deep dive into the business pool!

Personal Loans can help you build a good credit portfolio

A good reason to consider a Personal Loan is to fortify your chances of being eligible for credit products in the future. An active credit history with timely payments can help you build a good Credit Score and banks are more likely to grant you Car Loans and Home Loans, to name a few, in the future.

Check Your Credit Score!

Loans give you peace of mind

Let’s say you ditch your loan idea and decide to fund your start-up with your hard-earned savings. You may do well, but the thought of you having to rebuild your savings from scratch may bother you somewhere in the back of your mind. Why go through all this when you can focus solely on your business strategy by getting a loan; easy peasy?

We hope this helps you clear your mind and makes you take the plunge with confidence! As we said before, if you have a great idea, there’s no reason to put it off just for financial reasons.

Ready to explore financing options for your start-up? A Personal Loan for your business is just a few clicks away!

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