Will it be better to take a business loan or a personal
loan? Indian Money reviews
both options so that you can select the option that will be most suitable for
you.
Indian Money Review – Should
a Person Take a Personal or Business Loan?
Personal Loans
This kind of loan falls in the category of short term loans
and helps people meet their financial emergencies. Moreover, as a borrower you
will have to repay this type of loan within a period of one to seven years.
As per Indian Money CEO, these
loans are considered unsecured loans since there is no collateral or security
used for this type of loan. Additionally, since these are unsecured loans, banks
and other lending agencies tend to charge a higher rate of interest for such
loans.
Business Loans
As the name suggests, these loans are taken primarily for
business purposes and help with tasks like meeting working capital requirement,
business expansion, and other similar requirements.
So, which type of loan is better? Let us look at the details
in the following section.
IndianMoney.com Review
–Which is better, a personal loan or business loan?
1.
It is easier to get a personal loan compared to
a business loan.
2.
Banks will not be asking why you want a personal
loan. On the other hand, when you take a business loan, lenders will be
checking your business plan, credit score, and rest of your financial
statements.
3.
Personal loans have lesser processing time than business
loans.
4.
You will have to pledge collateral for obtaining
a business loan but such requirement does not exist for personal loans.
5.
If a personal loan is taken then repayments are
not made in time then it can have negative effect on credit score.
6.
By taking a business loan you are able to
separate your business from personal finances. Additionally, you will not have
personal liability if there is a business default.
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