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Personal Loans for Your Business – Everything You Need to Know

If you are looking to expand your business and take things to the next level financially, you will need funding and investments. You may not have ready funds or may not want to invest your savings in the expansion of your business. This is where personal loans come handy. You can avail personal loans and use the loan amount to invest in the promotion and expansion of your business. Chola is a trustworthy NBFC from which you can easily apply and avail Business loans. Paperless digital application and quick turnaround time makes it all the more desirable in case of emergencies.

Advantages of taking a personal loan for your business:

Easy to qualify for the loan:

Getting approval for an instant personal loan or an unsecured loan today is very easy. With minimum documentation and online application, loan approvals are just a matter of hours. Also, it is easier to prove eligibility for availing the loan with a good credit history and steady source of income.

Avail for small businesses too:

Getting a business loan for a startup or a small business which has only entered the field a couple of years ago can be a little difficult. Business loans are typically given to businesses with a certain revenue or returns. However, if you opt for a personal loan, you can utilize the amount to expand and grow your small business without much hassle.

Unsecured loans are easy:

Instant personal loans are easy to avail with minimum documentation and quick approvals. Also, one of the biggest advantages of instant personal loans are the fact that you need not submit any collateral to get the loan.

Flexibility of usage:

Personal loans can be used for anything – marriages, renovation of home, expansion of business, medical emergencies and so on. This kind of a loan is feasible for small businesses and salaried people.

Faster disbursal:

Getting a business loan will require you to submit many documents which in turns makes the process of getting the loan a little more tedious. However, getting an instant personal loan does not have that complication. Most lenders approve your loan application within a matter of hours and the loan amount will be disbursed to your account within 24 to 48 hours.

Expansion of business is not the only thing you can do with a personal loan. You can even start your own small business with a personal loan.

Now take your business to the next level with Chola personal and business loans. Easy EMI options and loan tenures make Chola among the best in class.

How to qualify for a personal loan for your business?

Good credit score or credit history: Paying back the money you owe to your lender on time is a good history to have. Lenders want to make sure that the borrower is trustworthy and the credibility of the borrower is usually associated with their credit history.

Regular income: It is important for you to have and for the lender to know that you have a regular income coming in so that you can make the repayment on time. If you are planning to quit your job to take care of your business, you will have to ensure you have ample savings to show proof of your eligibility to avail the personal loan.

Personal loans for businesses are tax deductible

For a personal loan, you can claim your interest payments as a tax deduction. Meaning, you can deduct the interest payments from your business income to decrease the amount of taxable business profit.

In order to do this, you will have to use the personal loan you have availed for your business use only. You will have to keep a track record of what your expenditures are in your business and can use it to claim interest payments on a personal loan as a tax-deductible.

Pros and cons of personal loan for business

Pros:

  • It is easy
  • It is fast
  • It can be affordable
  • It is versatile
  • Unsecured loan

Cons:

  • It could be risky
  • It can be expensive
  • It might not be enough to stand tall your business

Key features of Chola personal loans are mentioned below.

  • Loans from 1 lakh to 10 lakhs
  • No collateral needed
  • Term loans and flexy loans on offer
  • Quick turnaround time
  • Paperless digital process
  • All over India coverage
  • Affordable interest rates

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