Personal Loan v/s Small Business Loan

Posted by Palak Bisht on July 18th, 2019

Personal Loan v/s Small Business Loan

Are you thinking to start up a business and want some financial help? Are you confused between Personal Loan or the business loan?

Most of the people want to be their own boss, so they are starting up their own business. The mutual problem that arises is the lack of money. To start up a business, one should go with the option of Personal Loan as compared to the Business Loan.

Personal Loan: The loan which we use to fulfil our problems like wedding expenses, renovation of a house, education expenses etc. is called as Personal Loan. It is an unsecured loan; in these loans, there is no need of any collateral. We don’t need any guarantor as the relationship is between you and the lender. You are free to use the loan amount as per your needs.

Business Loan: The loan which we take from the bank for our business purpose is called a business loan. These loans are difficult to avail than Personal Loans. You can only use the amount of loan related to business purposes like for the income of the workers, purchase of equipment.

Which option is better to start up a business?

A personal loan is always the best option if you are starting up a new business. The reasons are listed below:

  1.       Interest rates: The interest rate of the business loan is quite higher than the Personal Loan. Jana Small Finance Bank Personal Loan provides you with the best interest rates and allows you to use it as per your desire. But on the other side, the amount of the business loan is only for the business set up.
  2.       Documentation process: The documentation process of the Personal loan is more accessible than the Business loan. In the process of Personal loan, the documents required are less than the business loan. The documentation process of Jana Small Finance Bank Personal Loan is easy as compared to the business loan.
  3.       The flexibility of use: You are free to use the personal loan amount as per your needs. It is not specific to use that amount on a particular thing, but in business loan, it is mandatory to use the loan amount on the business expenditure. You are not allowed to spend it on other purposes.
  4.       CIBIL score: Meanwhile, both the loans depend on CIBIL score but in the business loan, you need more documents like an application or some data. But the personal Loan mostly depends on CIBIL score. If your CIBIL score is more than 700 than you are eligible for the good amount of Personal Loan.

For the best results one should apply for the Jana Small Finance Bank Personal Loan. This banks serves with the best services to their clients.

Like it? Share it!

Palak Bisht

About the Author

Palak Bisht
Joined: July 12th, 2019
Articles Posted: 6

More by this author