Can I get a personal loan for self employed?
Thanks to non-banking financial institutions in India, availing of personal and business loans for individuals has become significantly easier than ever. Candidate age should between 22-55 years, with a business running no less than 3 years old.
As for documents required, you need to provide your KYC documents, audited financial statements, income tax returns, and bank account statements. You can receive a personal or business loan within 24 hours once you meet all eligibility criteria.
While a business loan can help you address financial gaps in your firm, a personal loan for self-employed professionals can also cover your personal and business’ big-ticket purchases effortlessly. In many cases, a personal loan seems to be more helpful.
Below are a few ways how you can use a personal loan in your business.
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Open a new office/move to a new location
You can utilize these unsecured loans to open a new office or shift your business to a new location. If you target a place with more prominence and opportunities, you have to pay a high price tag; no matter you lease or buy. Personals loans for self-employed up to Rs. 30 Lacs can meet your financial requirements without much hassle.
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Purchase Equipment
New office space will require equipment. Thus, you have to make investments to buy:
- Computers
- Printers
- Electronic appliances, etc.
Also, you need to set up telecommunication systems, internet, and install computer software; all of which call for monetary investments.
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Buy Plant & Machinery
Plant & machinery are parts of your business if you run a manufacturing unit. Buying or upgrading these requires significant investment, again. So, you can avoid using your working capital by availing a personal loan for self-employed.
- Increase Working Capital
Working capital helps your business stay agile and ensures that your short-term liabilities are taken care of. A deficit in the same can hinder your business operations. Hence, taking a personal loan can help you address the shortage in your working capital.
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Inventory Purchase
You may not have the necessary funds to restock your inventory even though your reorder level has arrived. Shortage in-stock can bring your business to a standstill. However, availing of a personal loan supplies you with the necessary funds to restock your inventory.
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Renovate Office
Similar to your house, your new or old office can call for renovation. Interior design is a big expenditure for which a personal loan for self employed business person can largely benefit.
Some of the items that can take up a significant portion of your fund are:
- Office furniture
- Partitions
- Lights
- Interior / Exterior Paint
- Designer Flooring, etc.
Moreover, adding various office decorative items can significantly increase your cost.
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Build a Website / Mobile Apps
Almost all businesses irrespective of their sizes have a website nowadays. Hence, you can use a personal loan for self-employed to build a website for your company.
You’ll also require an e-commerce website as well as custom-developed mobile apps if you plan to sell your products and service online. These sites can cost more than the standard ones.
Also, you have to ensure that your website has a responsive design so that everyone can access it irrespective of the device (computer, smartphone, tablet, etc.) they are using. This improves user experiences and chances of conversion.
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Launch a Marketing Campaign
Marketing is essential if you want to expand your customer base. Whether online or offline, a marketing campaign will require ample investment.
Online marketing gives you the opportunity to make your business visible to more users through search engines and social media. Similarly, you can place ads and banners in various locations through offline marketing.
One crucial aspect of marketing is that you need to invest in it continuously. Hence, a loan for a business person can help you finance your campaign easily. Moreover, there are many other reasons to use business loans for marketing.
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Debt Consolidation
Situations may arise when significant amounts of your debts are overdue. In such cases, applying for a personal loan for self employed is one of the ideal ways to clear off these debts. Also, you can repay your credit card debt or existing loans with high-interest rates using such loans.
