{"id":4358,"date":"2022-04-14T11:33:48","date_gmt":"2022-04-14T11:33:48","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4358"},"modified":"2022-04-14T11:34:18","modified_gmt":"2022-04-14T11:34:18","slug":"which-is-best-business-loan-vs-personal-loan","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/","title":{"rendered":"Which Is Best? Business Loan Vs Personal Loan"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d1af9fcc390\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d1af9fcc390\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#What_is_a_better_option_for_a_small_business_owner_%E2%80%93_A_business_loan_or_A_personal_loan\" title=\"What is a better option for a small\u00a0 business owner \u2013 A business loan or A personal loan. \">What is a better option for a small\u00a0 business owner \u2013 A business loan or A personal loan. <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#What_is_business_loan\" title=\"What is business loan ? \n\">What is business loan ? \n<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#Features_and_benefits_of_a_Business_Loan\" title=\"Features and benefits of a Business Loan\">Features and benefits of a Business Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#ELIGIBILITY_CRITERIA_OF_A_BUSINESS_LOAN\" title=\"ELIGIBILITY CRITERIA OF A BUSINESS LOAN\">ELIGIBILITY CRITERIA OF A BUSINESS LOAN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#Advantages_of_business_loan\" title=\"Advantages of business loan \">Advantages of business loan <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#Disadvantages_of_business_loan\" title=\"Disadvantages of business loan \">Disadvantages of business loan <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#What_is_a_personal_loan\" title=\"What is a personal loan? \">What is a personal loan? <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#Characteristics_and_advantages_of_a_personal_loan\" title=\"Characteristics and advantages of a personal loan\">Characteristics and advantages of a personal loan<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#Eligibility_criteria_to_obtain_a_personal_loan\" title=\"Eligibility criteria to obtain a personal loan\">Eligibility criteria to obtain a personal loan<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#For_self-employed_individual\" title=\"For self-employed individual:-\">For self-employed individual:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#For_salaried_individuals\" title=\"For salaried individuals:- \">For salaried individuals:- <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#Advantages_of_a_personal_loan\" title=\"Advantages of a personal loan\">Advantages of a personal loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/which-is-best-business-loan-vs-personal-loan\/#Disadvantages_of_a_personal_loan\" title=\"Disadvantages of a personal loan\">Disadvantages of a personal loan<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_better_option_for_a_small_business_owner_%E2%80%93_A_business_loan_or_A_personal_loan\"><\/span><strong><span style=\"color: #ff0000;\">What is a better option for a small\u00a0 business owner \u2013 A business loan or A personal loan.<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4359\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/04\/PL-vs-BL..jpg\" alt=\"PL-vs-BL.\" width=\"853\" height=\"543\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/04\/PL-vs-BL..jpg 793w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/04\/PL-vs-BL.-300x191.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/04\/PL-vs-BL.-768x489.jpg 768w\" sizes=\"(max-width: 853px) 100vw, 853px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_business_loan\"><\/span><strong><span style=\"color: #000080;\">What is business loan ?<\/span><br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A business loan is given to business owners for all the expenses of the organization. Various banks, financial institutions, and non-bank financial companies (NBFCs) provide it. Small business loans can be secured or unsecured, depending on the loan size, the borrowers&#8217; and lenders&#8217; relationship, and the type of loan.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Features_and_benefits_of_a_Business_Loan\"><\/span><span style=\"color: #000080;\"><strong>Features and benefits of a Business Loan<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table width=\"952\">\n<tbody>\n<tr>\n<td>High loan amount<\/td>\n<td>The borrower can take a high loan amount of up to Rs. 1 crore. The amount of loan can be provided based on your business requirements<\/td>\n<\/tr>\n<tr>\n<td>Hassle-free application process<\/td>\n<td>It requires an easy applicational process and less documentation.<\/td>\n<\/tr>\n<tr>\n<td>Repayment loan tenure<\/td>\n<td>The flexible repayment tenure for a business loan is up to 7 years.<\/td>\n<\/tr>\n<tr>\n<td>No collateral required<\/td>\n<td>A Business loan is a collateral-free loan. Therefore, there is less chance of losing their assets if they default while repaying their loans.<\/td>\n<\/tr>\n<tr>\n<td>Easily accessible<\/td>\n<td>Many lenders provide small business loans to their borrowers, it is easy for the corporation to help the need of their business.<\/td>\n<\/tr>\n<tr>\n<td>Quick disbursal<\/td>\n<td>The business person can avail of the business loan by both methods i.e., online and offline. Both methods help you with the quick disbursal<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"ELIGIBILITY_CRITERIA_OF_A_BUSINESS_LOAN\"><\/span><span style=\"color: #000080;\"><strong>ELIGIBILITY CRITERIA OF A BUSINESS LOAN<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4360\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/04\/Documents-Required-for-Business-Loan..png\" alt=\"Documents-Required-for-Business-Loan.\" width=\"842\" height=\"399\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/04\/Documents-Required-for-Business-Loan..png 720w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/04\/Documents-Required-for-Business-Loan.-300x142.png 300w\" sizes=\"(max-width: 842px) 100vw, 842px\" \/><\/p>\n<p>Business turnover, repayment , creditworthiness are some factors on which the eligibility depends.<\/p>\n<ul>\n<li>Age shall be between 25-65<\/li>\n<li>Business continuity should be a minimum of 3 years<\/li>\n<li>Minimum of 50 lakh and maximum of 1 crore can be availed as loan.<\/li>\n<li>Income tax return shall be filed for at least 1 year.<\/li>\n<li>Sales as well as revenue from operations shall be audited by registered by CA.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Advantages_of_business_loan\"><\/span><strong><span style=\"color: #000080;\">Advantages of business loan<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A high amount of business loan can be availed<\/li>\n<li>Tax benefit can be claimed on paying EMIs of a business loan<\/li>\n<li>The repayment tenure is higher<\/li>\n<li>Loan with low interest rate can be availed by person with good CIBIL score.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Disadvantages_of_business_loan\"><\/span><span style=\"color: #000080;\"><strong>Disadvantages of business loan <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The repayment tenure is not than flexible<\/li>\n<li>The credit profile of borrower must be strong<\/li>\n<li>Extensive documentation is required<\/li>\n<li>The assets will be lost if the borrower makes a default in repayment<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_personal_loan\"><\/span><span style=\"color: #ff0000;\"><strong>What is a personal loan? <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A personal loan as the name suggests can we availed for personal reasons including wedding , home renovation , pay bills , funding a holiday , higher education, it\u2019s an unsecured loan.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Characteristics_and_advantages_of_a_personal_loan\"><\/span><span style=\"color: #000080;\"><strong>Characteristics and advantages of a personal loan<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table width=\"930\">\n<tbody>\n<tr>\n<td width=\"123\">Less paperwork<\/td>\n<td width=\"807\">Less documentation is required as application form is online.<\/td>\n<\/tr>\n<tr>\n<td width=\"123\">Flexible repayment<\/td>\n<td width=\"807\">Flexible options are provided up to 60 months<\/td>\n<\/tr>\n<tr>\n<td width=\"123\">For various purposes<\/td>\n<td width=\"807\">A personal loan can be used for many purposes including medical expense, weddings, higher education etc.<\/td>\n<\/tr>\n<tr>\n<td width=\"123\">Quick disbursal<\/td>\n<td width=\"807\">The loan is disbursed within 4 to 5 days.<\/td>\n<\/tr>\n<tr>\n<td width=\"123\">High loan amount<\/td>\n<td width=\"807\">Maximum of 25 lakh depending on various factors such as age, capability of repayment, work experiences , financial profile etc.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Eligibility_criteria_to_obtain_a_personal_loan\"><\/span><span style=\"color: #ff0000;\"><strong>Eligibility criteria to obtain a personal loan<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"For_self-employed_individual\"><\/span><span style=\"color: #000080;\"><strong>For self-employed individual:-<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The borrowers shall be Indian<\/li>\n<li>Age shall be between 21-68<\/li>\n<li>CIBIL score shall be 750 or more than 750.<\/li>\n<li>2 to 5 years is required to do business.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"For_salaried_individuals\"><\/span><span style=\"color: #000080;\"><strong>For salaried individuals:- <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The age shall be between 20-60<\/li>\n<li>CIBIL score shall be 750 or more than 750<\/li>\n<li>The minimum salary must be 25000 or above.<\/li>\n<li>Work experience of 1 to 3 years is mandatory<\/li>\n<li>The nationality must be Indian.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Advantages_of_a_personal_loan\"><\/span><strong><span style=\"color: #000080;\">Advantages of a personal loan<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Personal loan can be used for many purposes<\/li>\n<li>Speedy disbursement of loan<\/li>\n<li>No security or collateral is required<\/li>\n<li>Less documentation is needed<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Disadvantages_of_a_personal_loan\"><\/span><span style=\"color: #000080;\">Disadvantages of a personal loan<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>As there is no collateral , interests rate are generally high<\/li>\n<li>Repayment is to be done within a short duration<\/li>\n<li>Tax benefit on payment of EMI cannot be claimed as tax benefit.<\/li>\n<li>The amount of loan is low, in comparison with small business loan.<\/li>\n<\/ul>\n<p>Hence, having a knowledge of IFCCL helps making better decision of business Loan and personal loan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a better option for a small\u00a0 business owner \u2013 A business loan or A personal loan. What is business loan ? A business loan is given to business owners for all the expenses of the organization. Various banks, financial institutions, and non-bank financial companies (NBFCs) provide it. Small business loans can be secured &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[844],"tags":[887],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4358"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4358"}],"version-history":[{"count":1,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4358\/revisions"}],"predecessor-version":[{"id":4361,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4358\/revisions\/4361"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}