Hopefully, you know the definitions and sources of various loans. You should know that the post is all about two types. Is there any difference in between personal loans that are taken for self-employed individuals and business loans that are taken by present and future entrepreneurs? According to a small portion, there is no difference in between these two types. But some other people find these two types different from each other. Even though there are similarities, the second type is having the correct view. Let’s undertake the similarities and dissimilarities. Hence, we will be discussing some indispensable elements of loan approval.
Both the personal and business loans are unsecured in nature, and offered by banks or non-banking financial companies, after a set of inspections. A business loan is given to the business agencies for the establishment or enlargement of business projects. Given to an individual, a personal loan is driven by the personal cash necessities. However, a personal loan is sometimes given to the proprietorship, partnership or limited companies. ITR, income tax return, is the other thing that brings into consideration while dispatching a personal loan or a business loan. Even though this is a lenient factor, you cannot get a loan without its consideration. Whether you are applying for a personal loan to a Delhi-based NBFC, a Kolkata-based NBFC or a Mumbai-based NBFC, your income tax return will bring into consideration, for sure. We are not insisting you to control those factors which are out of your control, but this is a factor which is strictly controlled by you.
Credit history is another factor that requires deep attention. Well, the credit history is considered in the case of a business loan. You are not supposed to present a healthy credit history if you are applying for a personal loan. Your business revenue will be considered if you are applying for a business loan. Of course, some fin-tech companies consider it as a less essential factor. But yes, a loan cannot be dispatched without its consideration. Many more things are there that require special attention. Due to the limitation of page boundary, we are not discussing those elements today. But we promise that we will highlight some more elements in our upcoming post. So, stays tuned with us, and enrich your knowledge about business as well as personal loan approvals. We have taken the responsibility to explore and share the facts, throughout our write-ups.