BENGALURU: Each and every business has some sort of financial backup to help it start, no matter if that business is a small one or a big one. A simple personal loan always proves to be very useful. So, as a business owner, you should always consider taking a personal loan to fund your business, according to ET.

Credit Rating Is Good While Starting A Business

If you already have a business and it has been a part of the institutional finance channel, the chances are that your business will have a credit rating. If the credit rating of your business is good then getting a favorable business loan will not be difficult. Generally, business loans carry a lesser interest rate when compared to a personal loan and with longer tenures.

Qualifying Under CGTMSE

If you have a small enterprise, you qualify for the Credit Guarantee Scheme (CGS). Under this scheme, a business can get collateral free loans up to 1 crore and the money can be used as cash credit for meeting working capital finance requirement for the purchase of commercial assets and business expansion needs.Banks Don’t Question About The Use Of Money:

Business loans are extended based on the utilization plan for the money that the banks are providing as loan. If the bank feels your business plan is sketchy, the loan will be rejected but on the other hand, if your personal loans are extended for any other purpose then no questions are asked about how the borrower will utilize it and in what way.

Amount Of The Loan Is Less:

If the amount that you need for your business is not enough, then one can think about taking a personal loan. Business Loans  always work best only if the amount is larger in nature, since the procedure to avail the loan is generally long and a tedious process. A personal loan is always hassle free only for smaller amounts.

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