Over the past few decades, women entrepreneurs have increased globally. This is because of the vibrant and encouraging startup environment and the easy availability of credit facilities. A personal loan is one credit facility that homemakers can readily avail themselves of to finance their entrepreneurship journey.
Read on to know how a personal loan can prove beneficial for women entrepreneurs –
Can apply with a co-applicant
As homemakers have no steady income flow, opting for a business loan is difficult. In such cases, a personal loan is a viable option because a personal loan allows homemakers to add in a co-applicant like a parent, spouse, sibling, or child to show a steady source of income.
With a co-applicant to your loan, your request for a personal loan may be approved if you meet the basic personal loan eligibility parameters. Also, note that adding a co-applicant also allows you to avail of an online loan at a lower individual loan interest rate if the co-applicants credit score is good, i.e., 750 and above.
You can avail of the loan instantly through an online platform
Nowadays, you do not need to visit the lender’s branch to avail personal loan. To avail of the loan, you need to visit any online lending marketplace to compare amongst different lenders. Once you have selected the lender, you need to click on the personal loan application online button available on the lender’s platform. Once done, your loan application will be reviewed, and if you are eligible, the lender will approach you with an offer. Ensure to negotiate on the request.
Use the personal loan EMI calculator to compute a suitable offer per your cash flow and repayment capacity. Once you know the relevant figures as per your potential, like the preferable personal loan EMI, individual loan interest rate, and tenure, negotiate with the lender for the same. Go for the lender providing optimal benefits at the lowest rate and processing charges.
Unsecured in nature
A personal loan is unsecured, so you do not require providing any collateral to avail of the loan approval. However, as they are unsecured, lenders usually may charge a slightly higher personal loan interest rate than secured credit options. Thus, to avail the lowest rate possible on a personal loan, ensure a strong credit score; if you don’t have a credit profile, add a co-applicant or guarantor with a strong credit profile and high income.
Documentation and processing time for a personal loan is way lower than for other loans. It is because the loan approval does not require collateral. In the case of secured loans, in-depth analysis and evaluation of the collateral by lenders are conducted to check its value, which takes a lot of time.
For a personal loan, the main documents required are ID proof, income proof, and address proof. You do not need to provide copies, and the proceeds are disbursed on the same day of applying. Many lenders also offer you a preapproved personal loan.
You can repay the personal loan in the form of EMIs. Payment tenures for personal loans are flexible and range between 1 and 5 years. You can select any term based on your cash flow and affordability.
Now that you know how a personal loan can help finance your startup journey, you must ensure to opt for it in case of fund shortages or mismatches. However, before this, select a suitable lender offering the lowest interest rate and processing charges at favorable terms and conditions.