Ahmedabad (also known as Amdavad) is the fifth most populous city in Gujarat. With emerging industrial hubs, Ahmedabad has become the second-largest producer of cotton. As a result, it is known as the “Manchester of India.”
The enormous development of commerce, communication, and construction has made this place the best city to live in. As a result, the population of this city has increased, which in turn has given more scope for new entrepreneurs to kickstart their careers in business.
Starting a business in a competitive environment like Ahmedabad can be pretty tricky. You might have an excellent business idea, but a lack of financial resources can hinder bringing it into existence.
But now, you don’t have to worry about your financial resources. You can easily apply for a personal loan in Ahmedabad to help you in fulfilling your business dreams.
Are you wondering how to apply? This article will help you understand what a Personal Loan for a business is and guide you through getting one quickly in Ahmedabad.
What is a Personal Loan for Business (Business Loan)?
A business loan is an unsecured loan offered to meet financial requirements. You can use this loan to start a business, expand your existing business, manage inventory, etc. Since it is unsecured, you don’t have to submit any collateral while applying for this loan.
You can also get a personal loan in Ahmedabad quickly using Buddy Loan. It is one of the best third-party aggregators that offer loans for various categories. As it is easily accessible, it is considered the most convenient source of funds, especially during an emergency.
When Can You Choose a Personal Loan For Business?
You can always choose a business loan when there are the following requirements:
Start or Launch Your New Business
As an entrepreneur, you might have always dreamed of bringing your business idea into a successful venture. But starting a business that stands out from your competitors requires a lot of financial resources. Therefore, you can take a personal loan for your business to handle all your overhead costs.
Expansion of Your Existing Business
When your business has good ROI and profits, you might choose to expand your business. Expansion is a huge process that requires heavy investment to launch your new product, expand your operations and productions, etc. Therefore, getting a business loan will help you expand your business successfully.
New Equipment And Machinery
Sustaining a business is the most challenging part. With cut-throat competition, you must keep an eye on the current market trend, technology upgradation, and competitors’ moves. You must keep your business updated by purchasing new equipment and machinery, which requires a lot of funds. Therefore, you can smoothly handle these expenses by taking a business loan.
Inventory Management
It tracks the stocks required from purchase to the sale of goods to the end-users. It includes managing raw materials, getting components from suppliers, warehousing the products, and reaching the finished product to the customers. Therefore, you can use a business loan to meet the expenses required for managing the inventory.
Human Resource Management
When you start your business, you need talented employees to run the business successfully. The cost of hiring, training and mentoring can be pretty much for a new startup to handle. Therefore, a personal loan is the best solution to meet these expenses.
Marketing Strategy
The marketing strategy plays a vital role in bringing profits to the business. It helps the business build a strong brand that attracts customers. Therefore, to curb the costs required for marketing strategy, you can always choose to apply for a business loan easily.
Also Read : Planning To Launch a Business? A Small Business Loan Is An Ideal Solution
Why Taking a Personal Loan For Business a Good Idea?
When your business requires some financial aid, it is better to choose a personal loan to meet those expenses hassle-free. Here are a few reasons why availing of one is a good idea:
- Collateral Free: A personal loan is an unsecured loan, which means that you can get this loan without submitting any collateral as security.
- No Hidden Charges: There are no hidden charges applied for a personal loan. However, the banks and lending institutions charge GST of 18% and processing fees of 0.5% deducted from your total loan amount.
- Minimum Documentation: You only have to submit minimum documents for KYC and income proof.
- Flexible Tenure: The repayment tenure for a personal loan starts from 6 months to 60 months. You can plan and choose your tenure period according to your budget.
- Quick Loan approval: Since the process is online, your loan amount will be disbursed quickly to your bank account after completion of verification within 24 to 48 hours.
- Paperless Process: You need not physically come and visit your bank to apply for a personal loan. You can easily apply using their official website or mobile application.
Also Read: Looking For a Personal Loan in Surat? Here’s How You Can Get One.
Who Can Apply For a Business Loan?
You can apply for a business loan if you meet the following eligibility criteria:
- Must be an Indian citizen.
- Age ranges from 24 to 70 years.
- Your business entity must be registered, and it must run successfully with significant profits and ROI for at least three years.
- Individual entrepreneurs, SMEs, MSMEs, Manufacturers, Public, and Private limited companies, partnership firms, etc., are eligible for this loan.
- Your business must have a yearly turnover of INR 12 lakhs and more.
- It would be best not to have any pending debts in previous years.
Minimum Documentation Required
| Sl. No. | Particulars | Documents required |
| 1 | Proof of Identity | Aadhar Card, PAN Card, Driving Licence, Passport |
| 2 | Proof of Address | Aadhar Card, Electricity Bill, Water Bill, Passport |
| 3 | Proof of Income | Bank statement for the past three months Salary Slips of three months Income Tax Returns for the last three years Balance Sheet and Profit & Loss Statements for the last three years audited by a CA. |
Things to Keep In Mind Before Applying For a Personal Loan
Credit Score:
A high credit score shows a clean and consistent credit history. It indicates your repayment ability. As a result, you are a low-risk borrower. A score of above 750 is considered good and will help you get a loan at comparatively lower interest rates. If you want to check your credit score, you can use Buddy Score to get your instant credit report.
Loan Amount:
As personal loans are easily accessible, it is tempting to take more than you require. But if you do so, you have a higher chance of default, which will hurt your credit score. Therefore, you must take the loan amount only for what you need.
EMI:
Plan and calculate the EMI that you will be paying to plan your expenses accordingly.
Relationship With The Lender:
You have a higher chance of getting your loan approved when you maintain a good relationship with your lender. The reason is that the lender will already know your current financial situation and your creditworthiness.
Interest Rates:
Before applying for an instant personal loan, compare the interest rates provided by various lenders and choose the one that provides lower interest rates.
Other Charges:
Be aware of other charges that lenders include, such as GST of 18% for banking services and processing fees of 0.5%, which will be deducted from the total loan amount.
Also Read : A Comprehensive Guide for Getting a Personal Loan in Bangalore!
In Conclusion
Starting your dream business and sustaining it in a competitive place like Ahmedabad can be challenging. Moreover, it would be best if you always kept an eye on constant innovation and technology upgradation depending on the current market trends. The cost of launching a business, expanding the operations, managing inventory, and marketing can be easily handled by applying for a personal loan in Ahmedabad. Therefore, you can use this loan to make your dream business into a successful venture.
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