Suppose your company is in a challenging position right now, and you need money to get it back on track. In that case, business loans are available to assist you, or if your wedding runs over budget, simply take a personal loan and enjoy your special day.
Loans are majorly classified into two kinds that are secured loans and unsecured loans. Borrowers with secured loans must provide collateral or security in exchange for their loan. As opposed to secured loans, unsecured loans require no collateral from the bank, NBFC, or any other financial institution.
The two of the most common types of loans are business and personal loans.
What are the things you should know about business loans?
A business loan is a loan made solely to cover business expenses. It is a service provided by banks and non-bank financial institutions (NBFIs). The demand for business loans has risen dramatically as the number of startups and small businesses has grown. Loans for startups and small companies are available at low-interest rates.
Banks and non-bank financial institutions (NBFCs) provide both secured and unsecured business loans, such as:
- Term loan
- Working capital loan
- Loan against property for SME
- Equipment financing
- Merchant cash advance
- Business credit card
- Startup loan
Small Finance Institutions (SFBs) offer business loans ranging from 30,000 to 1 crore with no collateral from prominent private and public banks.
What are the prerequisites for securing a business loan?
- The company must have been in operation for at least one year and be profitable.
- To demonstrate your creditworthiness to pay the loan EMI, your credit score must be 750 or higher.
- The minimum annual turnover should be 12 lakh and above for the existing employees.
- Previous loans should not have defaulted.
What is the essential information you should know regarding personal loans?
A personal loan can save you from any financial catastrophe, whether a scheduled expense like a wedding or an unexpected tragedy like a medical emergency. Commercial banks and non-banking financial firms also offer personal loans (NBFC). A personal loan becomes a suitable solution to fulfill all of your immediate cash needs.
Banks and non-bank financial institutions (NBFCs) offer both secured and unsecured personal loans, such as:
Loan for weddings
Expenses for an emergency
Loan for a vacation
Loans for debt consolidation
Loan for home improvements
What are the requirements for obtaining a personal loan?
- Individuals between the ages of 21 and 60 who have worked for at least two years and should have at least one year of experience with the current employer
- Those who earn at least 15,000 rupees per month in net income.
The loan assistance apps provide all the information you need regarding a personal or business loan. Loan assistance applications give you access to financial tools like EMI and premium calculators, the option to check your credit score, various low interest loan, and other information. In addition, you will receive all of the financial assistance you require to choose the best loan plan for you.