Why Personal Loans Are Becoming So Popular Among Working Class Masses

Off late we have seen that the Indian economy is literally taking the world by storm. Not only is India proving to be capable and deserving of entry in BRIC, but its positive socio-economic factors have also garnered more attention than most of the other competitors.

One of the key determining entities that has been instrumental in shaping the present India, known as India Inc., is the gradual but major change in the socio-economic factors that exemplify and determine the competitiveness of a nation when pitted against the best in the business. Gone are the days when a budding entrepreneur would apply for either a business loan or a personal loan at their preferred bank and then be in an endless loop of waiting and hoping to get the nod from the bank that they have applied to.

The ease with which an applicant can apply for and avail a personal loan depends on a lot of factors that are shaped by recent and long term past experiences. Additionally, there are also safe practices put in place by both the government as well as businesses themselves. They are as follows-

Interest Rates Attractive to the Businesses

There is no monopoly of lenders any longer. In this day and age, when we have an abundance of a lot of things in India, viz. many buyers and many sellers, there is what can be termed as a perfect competition, as envisioned by a certain Adam Smith, the renowned economist from England of the nineteenth. This very perfect competition helps to nurture a positive and sustained outlook of economic progress.

Minimum Documentation and Easy Approvals

Gone are the days when you didn’t just need a strong business plan but also a lot of tenacity and tons of patience to apply for not just a business loan but also a personal loan. These days, it is a well-known fact that if you have your arrangements set in the right manner and at the right time, then a personal loan can fill the gaps as needed.

Process Simplification

Apart from the documentation part, one of the hindrances was the multiple hoops that a borrower needed to navigate. There used to be a lot of processes and as a result of that, plenty of red tape. At present, we are now accustomed to process simplification, which in turn also translates to easier outcomes. This means that modern processes for applying for personal loans help an entrepreneur navigate his course better to reach all his/her planned milestones.

Ease of Funding Businesses

Now that we have discussed the above points, there remains just the final phase of funding the business, which has gotten a lot easier as well. It is taken care of once as soon as everything else has fallen in place.

Customization

An individual or a business owner is able to decide on the prepayment methodology, tenure as well as the ability to structure their EMIs in such a way that they only have to pay the interest component as their EMI during the initial tenure of your loan.

With the presence of the current government policies and other private players, it makes better sense to enter the once tedious and risky waters of setting up a business in India and now you can fund it by a personal loan or a business loan.

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