How can Housewives Get Personal Loans for Small Business

A personal loan has become a popular tool to get money in times of need. Its popularity remains unmatched owing to ease of paperwork and quick disbursal. However, the apprehension arises when one thinks if a homemaker can get a personal loan or not? Well, housewives are now different from what they used to be a decade back. They want to explore business opportunities while they continue to take care of their family. A personal loan is a great way to help them explore new avenues of work. 

Why is Personal loan a great choice?

One of the primary reasons which make the personal loan a great choice is because it puts no restrictions on the usage of money. One can use this amount for marriage, vacation, home renovation, and even starting off a new business venture.

While we discuss the same, to avail this loan, one has to be eligible for it. Banks and NBFCs have set criteria which one needs to match to help him get the personal loan.

The criteria remain the same for every individual:

• Identity proof - One of the first thing that you would require is the ID proof which can include Driving License, Voter ID, Aadhaar Card, passport, etc.
• Age Proof- Government-approved birth certificate

The other documents that one is required to submit are income proof, bank statement, and employee verification. But, when taking into consideration housewives, then they may not have the latter. In such a scenario, the other way to apply for the loan includes going the other way round. Read ahead to know more about it:

Interest Rate and Repayment Period - pointers that you should never miss

One of the key parameters that one should not miss while applying for a personal loan is the interest rate and the repayment period. Since there are several options in the market, you will be amazed at their offerings. To smartly narrow down your options, you can go ahead and choose the ones that have a lower interest rate.  

Tabular representation of the personal loan interest rate offered by different banks and NBFCs:  

Name	Interest Rate	Processing Fees	Loan Amount	Tenure
HDFC Personal Loan	12.5-19.5%	2.50%	Up to 25 lakhs	5 years
Tata Capital Personal Loan	12.5-19.5%	2.50%	Up to 15 Lakhs	5 years
Bank of Baroda Personal Loan	14.15%	2.00%	Up to 2 Lakh	3 years
ICICI Bank Personal Loan	11.49% – 17.50%	2.50%	Up to 20 Lakhs	5 years
Aditya Birla Personal Loan	14.00% – 16.25%	1.25% – 1.75%	Up to 30 Lakhs	5 years
SBI Personal Loan	17.65%	2% – 3.00%	Up to 10 Lakhs	4 years
Fullerton India Personal Loan	17.25% – 32.00%	1.5 – 6.00%	Up to 15 Lakhs	4 years

Also, Read This: What Are All the Types of Bank Deposits?

How can a housewife apply for a personal loan?

If someone is willing to start a business, then he/she would need monetary assistance. The personal loan appears to be the easiest way out. Since it doesn’t put any restriction on the usage of the loan amount, one can easily apply and use this money to start the business. However, if some in unemployed or doesn’t have a steady source of income, then things can turn a bit tricky as one has to produce income proof while applying for a personal loan. Here is a way out:  

Add a Co-Applicant - Well, one of the easy ways out is to find a co-applicant. You can take a joint personal loan. In this case, the bank will consider the income proof as the supporting document. The amount of loan disbursed by the bank will be decided by the income of the co-applicant. Before you apply for a personal loan, don’t forget to check the EMI option and also the interest rate. You can log on to the portal of your shortlisted bank or NBFCs and get the details. For example, if you want to apply for Tata Capital Personal Loan, then you can log on to its official website and proceed with online EMI check and application. 

Add a Loan Guarantor - If you are assured that your business is going to reap benefits and you can pay off the loan easily, in this case, you can add a loan guarantor. Loan guarantor is a person who agrees to pay off the loan in case the prime borrowers fails to do so. Having a loan guarantor who has a higher credit score and good credit history will make it easy for you to apply for a loan and avail it. 

 A personal loan is a good alternative for those who cannot take business loan for starting their business. It is easy to apply, and one can pay it off in easy EMIs. Most of the people make a personal loan to start their business, and once the business begins flourishing, they switch to business loan.

Features of Personal Loans for Women

1. Adding a co-applicant makes you eligible for a personal loan – In case you do not have a regular income.
2. No restriction on the usage of the amount – you can use the amount to fund your new business, buy appliances, arrange required infrastructure, etc.
3. Quicker loan approval – The loan approval process is quick and takes very less time.
4. Minimal paperwork – Almost nil paperwork. In some cases, the loan is pre-approved
5. An unsecured loan, hence there is no need to add collateral – No need to provide your home or asset as security.
6. You can easily start your business – Start your business as soon as you get the funds.
7. Pay off in easy EMI – Start repaying the loan in EMIs.

Conclusion- There are a number of banks and NBFCs offering personal loan. Comparing their interest rate and other aspects will make it easy for an individual to apply for a loan and avail it. However, the interest rates do impact EMIs and failure of repayment can affect the credit ratings and history. Hence, thoroughly analyze your repayment capacity and then apply for a personal loan.