Personal loan vs Business loan – Know the difference.
Life is all about going through ups and downs. But don’t worry; PaySense is there for you all the time. It is an app that offers personal loans in all the major cities across India, such as Haridwar, Agra, Jamshedpur, Madurai, Salem, and many others. The app is available Play Store and you download it to solve your difficult, inconvenient, and not transparent access to credit. You can also enjoy getting instant loans up to Rs. 5 lacs using your laptop or phone.
Personal loan
But do you know what a personal loan is? You might know that a loan is a method of lending money to organisations, individuals, or other entities. So, a personal loan can be understood by relating it to personal stuff. This type of loaning is lending money to fulfil personal needs and requirements. Your requirement to seek a personal loan may vary, as it can be for education, buying a property, or anything else.
Nowadays, most people seek personal loans as it offers one-time payment to cash borrowers. However, the best thing about a personal loan is that you can pay the amount in instalments. So, if you are a person who wants to get a car but does not have full-fledged savings for it, then you can choose to have a personal loan. This will let you fulfil not only your requirements but your dreams too.
The eligible criteria for seeking a personal loan are that you need to be a resident of India, and your age should be between 21 to 60 years. Your employment type can be salaried or self-employed, with a minimum monthly income of approximately Rs.18,000 or Rs.20,000. While you are eligible to seek a personal loan, you should have documents like identity, address, and income proof.
For identity proof, you can use your Pan card and selfie; for address proof, you can use an aadhar card, voter id, passport, or driving licence. While you also need income proof so you can use net banking or the last three months’ bank e-statements.
The process to seek an instant personal loan acquires three simple steps.
- Firstly, you must check eligibility and select a personal loan plan. Next, you need to fill in some essential details to check your eligibility for instant personal loans and get a Credit Line. Then it is followed by choosing the loan amount, best EMIs, and loan duration.
- Secondly, you will have to upload KYC documents. After uploading your documents, you can receive approval within 2 hours.
- Thirdly and lastly, once your loan is approved, the application procedure is complete, and your money will be transferred to your account. So, isn’t it easy to get an instant personal loan?
Business loan
A business loan is lending an amount of money that is specifically for fulfilling business purposes. One can lend money to organisations, individuals, or other entities. This kind of debt is expected to be repaid with interest within a selected time per the agreement.
There are different business loans, such as SBA Loans, term loans, invoice financing, commercial real estate loans, and many others. For example, you might need a business loan to expand your business and fulfil inventory needs and cash flow. Some other reasons to seek a business loan are to improve your credit history or to buy types of equipment.
You can enjoy several benefits from lending a business loan, such as an SBA loan offering low-interest rates, and with lines of credit, you will have to pay back the amount you borrowed. In case you don’t have a good credit score, you can go for short-term loans, and the application process is more straightforward.
Differences between Personal loans and business loan
There are several differences between a personal and business loan. Some of them are mentioned below.
- Personal loans can be taken for fulfilling various kinds of requirements. Whereas business loan is offered only to the ones with good business ideas.
- No collateral is required to seek a personal loan, and you can seek it from any loan app in India. But for a business loan, you might be asked for a mortgage.
- Lack of tax benefits with a personal loan. But the interest you pay for a business loan is tax-deductible.
- Personal loan is for a short term. Whereas business loans can be for short-term and long-term as well.
- Seeking a personal loan is easy, as it requires minimum documentation. But in a business loan, you might have to submit several documents.
Conclusion
Personal loans and business loans have several differences. You can choose the best one as per your needs. PaySense is the best loan app in India, so what are you waiting for? Go check out something for yourself on the company’s website.