• Working Capital Loan : Working capital loans are used by individuals, entrepreneurs, startups, and MSMEs to meet their daily business requirements and for various business expansion services, enhancing business cash flow, purchasing raw materials, addition in inventory/stock, paying salaries, hiring staff, etc. Working capital loans are majorly short-term loans of the loan amount up to Rs. 40 lakh wherein the repayment tenure is up to 12 months or may exceed business requirements. The interest rate offered by Banks/NBFCs is a bit higher, as compared to long-term loans or general business loans. In this type of loan, the lender sets a limit for the business to take a loan and the amount can be utilized for specific business purposes, only.
• Term Loan : Term loan is a loan that is required to be repaid in regular payments over a set period of time. The term loan is categorized into short-term, intermediate-term and long-term loans. The repayment tenure of these two types ranges between 12 months to 5 years. Term loans that are of a shorter duration which is of 12 months are called short-term loans and loans up to 5 years or more are long-term loans. The collateral-free business loans are offered up to Rs. 2 crore, also can exceed depending upon business requirements. The repayment tenure for a term loan is finalized by the lender at the time of loan application.

• No end-usage restriction

• Interest rate starting from 12.36% per annum

• Repayment tenure of up to 4 years, which may exceed on case to case basis

• Personal loans are available for periods as short as 12 months. The average tenure for a Personal Loan is between 12 and 45 months, depending on the loan amount.

• Minimal documentation

• When there is a cash crunch

• Paying for a holiday

• Debt consolidation from other loans or credit cards

• Buying high-end electronic gadgets, household appliances, wedding expenses, emergency medical expenses, home renovations, etc.

• Creating high value purchases

Online Apply Through The Bank’s Website

• Go to the bank’s website.

• Under the loans section, choose personal loans

• Click on ‘Apply Now’

• Enter the details in the application form and submit

• The bank will evaluate your application and ask you to submit the required KYC documents.

• You can apply for a personal loan online, with a bank, or any financial institution.

• The official website of most of the banks and NBFCs have the facility to apply for a personal loan with a single click.

• Your personal loan eligibility is decided based on various factors like your credit score, income, age, employment type, and a few other factors.

• If the financial institution feels that your eligibility criteria are favorable, they will approve your personal loan and disburse the amount into your account.

• Now, the personal loan amount could be disbursed as cash into your account or the lender may provide you with a pre-loaded card that can be used for your purchases.