Difference between Personal Loan and Business Loan
A personal loan is a kind of loan that you can use to fulfill your personal needs. Whether it is related to your educational needs or to pay medical bills. Whereas the business loan is generally used for the purposes related to business firms directly or indirectly. So many banks and non-banking financial companies provide personal loans as well as a business loan. You can easily apply for business and personal loans online in no time. And if you are eligible you can easily get within very little time. There are some differences given below that differentiate business loans and personal loans quite clearly.
Eligibility
Though eligibility criteria of personal loans and the business loan are different in different banks. But still, there is a difference. Personal loans can be availed only by salaried individuals. But they are not eligible to get a business loan. In simpler words, salaried employees can get a personal loan but can not avail a business loan with that position.
Amount
The amount of loan sanctioned can be a little bit more in case of a business loan. Basically in the case of the business loan amount of the loan depends on the Income. Tax Report of the applicant.
Rate of Interest
The rate of interest is a little bit high in the case of the business loan as compared to the personal loan. Personal loan offer fewer rates of interest to customers.
Time for Approval
The approval of personal loan takes a few hours to be stretched till 24 to 48 hours if you are eligible and get disbursed within a day if all the required documentation is prepared and well maintained. But generally, business loans take time to get approval and disbursal as well.
Eligibility of Salary
Your salary should be greater than 20000 if you are salaried and if you are self-employed then you should have been filing your ITR for the last three years. Check you personal loan eligibility before applying for a loan.
Multiplier
The multiplier selected by most of the banks for availing a personal loan to customers is 16. Like if your salary is Rs. 20000 per month then you will get a maximum32, 0000. In the situation of self-employed, a multiplier of 4 works by the bank on tour ITR. Like if you file ITR of Rs. 400000 per year then you will get a maximum of 16 Lakhs as a business loan.
Collateral
No collateral is required in both cases.
How to Apply
After checking your EMI’s you can apply for a loan online on Dialabank. The process is quite easy and convenient.
- First of all search for Dialabank on Google.
- After that fill the application form for the personal loan.
- You will get a call back within 5 minutes, with proper guidance.
- If you will be eligible then your loan will get approved within 10 minutes.
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Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.
