Noida is one of the most visited cities in Uttar Pradesh. The city is also known for its IT and software sector growth. Being the most important place in the National Capital Region, it holds a lot of attraction for the people. It is known for its cleanliness and its infrastructure. It has grown a lot in the last few decades, and the city continues to develop and is becoming the primary hub of the IT sector. One of the most important reasons for this growth is the infrastructure, and the city has good connectivity with Delhi, the capital of India. It has many leading schools, colleges, and universities that provide high-quality education. The city has some of the best schools run by top public and private sector companies. Several new companies have set up their base in Noida and are looking to hire freshers and experienced professionals.
Moreover, the city is expanding in all sectors and is a preferred destination. And business and start-ups are the two main sectors driving the city’s growth. Therefore, if you are planning to start your own business or grow your existing one, Noida is a great place to start. However, starting a business or growing your existing one can be a challenge as the competition in the market is very high. Therefore, you must have a strategic budget to sustain your business. And to meet all your business expenses, you can opt for a personal loan in Noida for business requirements.
And before going further, let us dive deep to understand what a personal loan for business is and the purpose for which you can avail of a personal loan for your business requirements.
What is a Personal Loan For Business?
Banks and NBFIs offer personal loans for entrepreneurs to meet the financial requirements for running a business. It is an unsecured loan and does not require any collateral to get a loan. You can get a personal loan for your business using Buddy Loan, as it is the best third-party aggregator that helps get loans for various categories with affordable interest rates and flexible loan tenure of repayment.
When To Get A Personal Loan In Noida For Business Needs?
Starting and sustaining your business requires a lot of capital investment in a competitive city like Noida. Therefore, here are a few situations where you can apply for a personal loan to cover your business needs.
Launching your new business:
You can quickly start a business, but sustaining in the market is the challenge. It requires research, innovation, and a constant eye for upgradation. Moreover, when you start your business, you must ensure that you stand out from your potential competitors and manage the overhead costs. Hence, a personal loan will help you handle all those expenses and transform your business idea into a profitable venture.
Expanding your existing business:
When your business is running with profits, you might want to grow your business to increase the network and acquire new customers. However, it requires a lot of capital investment to up-scale your business, expand the productions and operations, launches a new product in the market, etc. Therefore, you can easily cover this vast capital expenditure by taking a personal loan.
Procurement of new machinery or equipment:
With the constant technological change, you must keep upgrading the machinery and equipment according to the current demand, especially if it’s a manufacturing firm. Hence to stand out from competitors and sustain in the market, getting a business loan will help you cover the cost of new machinery smoothly.
For a business, managing the inventory is an essential part. It mainly includes: procurement of raw materials, getting the components from suppliers, storing the finished product, warehousing, and transporting the finished goods to the consumers. The whole process is quite expensive to manage for a growing business. Hence, you can take a personal loan to meet this requirement.
Human Resource Management:
The cost of recruiting, training, and mentoring talented employees requires a lot of capital investment. Hence, a personal loan can help you manage such costs efficiently.
Every business requires a strong marketing strategy to promote its product or services and establish its brand. However, a good marketing strategy comes with a cost. To meet those expenses, a personal loan will be an additional benefit.
Benefits Of Getting A Personal Loan In Noida
|All-Purpose||You can apply for a personal loan for various financial needs such as vacation plans, wedding expenses, medical emergencies, business expansion, etc.|
|Flexible Tenure||You can choose the tenure of repayment which starts from 6 months to 60 months and repay your loan through EMIs.|
|Instant disbursal||With digital verification, your loan will get instantly approved and disbursed within a few hours to account.|
|No collateral||Since it is an unsecured loan, submitting any asset as security is not necessary to get your loan application approved..|
|Minimum documentation||Only minimum documents like Aadhar Card, PAN card, and bank statements are required to get your loan instantly.|
|Paperless process||With digitalization, the loan process is paperless. Hence, you need not visit banks to apply for a loan.|
Eligibility Criteria Of Personal Loan For Business
Before you apply for a personal loan, check if you meet the following eligibility criteria:
|Age||24 to 70 years.|
|Business Tenure||The business must be registered and established with high profits and ROI for a minimum of three years.|
|Business Type||New entrepreneurs, SMEs, MSMEs, Manufacturers, etc|
|Business Turnover||Annual turnover of INR 12 lakhs and more|
|Debts||The business must not have any pending debts in past years|
|Credit Score of the owner||Must have a credit score above 750|
|Sl. No.||Particulars||Documents required|
|1||Proof of Identity||Aadhar Card, PAN Card, Driving License, Passport|
|2||Proof of Address||Aadhar Card, Electricity Bill, Water Bill, Passport|
|3||Proof of Income||Bank statement for the past 3 months
Salary Slips of 3 months
Income Tax Returns for the last 3 years
Balance Sheet and Profit & Loss Statements for the last 3 years audited by a CA.
Remember This While Applying For A Personal Loan in Noida
Credit Score: You must maintain your credit score above 750 as it shows that you have a good credit history and can repay your debts on time. Having a good rating will also help you get loans at lower interest rates. Hence, if you want to check your credit score, you can use Buddy Score to know your creditworthiness.
Loan amount: If you apply for a loan amount more than you require, you might fall into a debt trap and fail to repay your debts on time. As a result, your credit score will also drop, affecting your creditworthiness. Therefore, plan your budget and only take out the loan amount for what you need.
EMI: Calculate how much EMI you have to pay monthly with the help of EMI calculators that are available on various websites for free. This way, you can compare the interest rates, tenure of repayment, and EMIs offered by other lenders and chose the lender who offers the lowest interest rate.
Relationship with the lender: Sometimes, lenders will be ready to offer you loans even if you don’t have sufficient documents if you have already taken a loan from them. Since they already know your financial status and have a good relationship, they will trust you when lending you money.
Debt-to-Income ratio: Usually Debt-to-Income ratio shows your ability to manage your debts with your monthly income. Therefore, lenders will expect you to have your DTI ratio be less than or equal to 50%.
Additional Charges: Make sure you check with your lender if they are including any additional charges such as GST of 18% and processing fees between 0.5 percent to 2.50 percent deducted from the loan amount.
In a business and IT hub like Noida, you will get a lot of opportunities to grow your business or start a new venture. With heavy competition in the market, managing its cost to sustain is the biggest challenge. This is why getting a personal loan is highly beneficial when you face financial crunches in your business. Moreover, you can apply for a personal loan using Buddy Loan to cover your business needs. It is one of the best third-party aggregators that help you get instant loans online for various categories.
Where can I apply for a personal loan for my business?
You can apply for a personal loan using Buddy Loan, the largest loan aggregator. It will help you have a smooth process when getting a personal loan. And you can use this personal loan for your business needs.
Is credit score important when applying for a personal loan?
A credit score is the first thing lenders check to determine your credit history and repayment ability. And if you have a poor score, your loan might get rejected. Therefore, you must have a minimum score of above 750 to get your loan approved.
Can I get a tax exemption for a personal loan used for my business?
Yes, if your business is an MSME, the interest paid towards your loan is exempt from tax as it is an expense, not revenue. However, the principal amount is not tax-deductible.