5 Ways to Use a Personal Loan for an Online Business

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Nov 27, 2020Personal Loan

It is expected that India’s e-commerce sector will be worth an impressive $ 150 billion by 2022. By 2025, there will be more than 200 million online shoppers. So if you are running an online business, you can imagine the growth potential that lies ahead.

There would be instances when you would need access to funds for scaling up your venture. Other than your savings or getting your family and friends to invest, getting a personal loan for online business is possibly one of the easiest funding avenues rather than going for a more complex business loan.

Here’s how an instant personal loan from Fullerton India can benefit when you start your online venture.

1. Meet Your Working Capital Needs

The process to apply for a personal loan from Fullerton India - is quick and easy. The application requires minimal paperwork, most of which can be completed online. You can apply for a loan of up to INR 25 lakhs at competitive interest rates starting from 11.99%*.

Fullerton India’s personal loan is one of the easiest ways for newly launched online businesses to meet their working capital requirements such as rent, overhead salary, utility bills and inventory management. Generally, post the verification phase, the loan is approved and disbursed within a period of 24 business hours. Therefore, it is one of the most convenient ways for business owners to tide over their immediate financial requirements in a short time span.

2. Be Financially Liquid

As opposed to business loans, you can apply for a personal loan at Fullerton India for your virtual business enterprise without having to put up any collateral or third-party guarantee. Since any new business - be it online or otherwise - comes with its share of risks, not having to sign off or block precious assets as security for a loan can be a blessing.

Therefore, with a personal loan, you can be financially flexible and liquid to a significant extent which undoubtedly is a huge benefit. Plus, if you plan to expand your business operations in a few years’ time, upscale production, launch new product lines or open new divisions, a collateral-free personal loan can give you wings to fly.

Must Read: 5 Simple Ways to Choose the Right Personal Loan Tenure

3. Upgrading Technology

If your online business picks up, your technology requirements could change overnight. You may need to invest in larger servers and expensive applications. You may also need to make additions to your IT department. These activities may require you to arrange for additional funds within a few days.

You can rely on us to provide you with a personal loan. Our documentation process is hassle free and we disburse loans quickly so that you can go about upgrading your technology.

4. Hiring Temporary Resources

During festive seasons, there might be a spike in your online business. Higher number of orders would mean arranging for more staff members to pack the items that are due to be shipped. However, it may not make sense to hire full time employees during this phase. Instead, you could hire temporary workers to help with packing the orders. These temporary workers may be required only for a few days and you would quickly need funds to clear their wages.

By availing a personal loan from us, you can do just that.

With a fairly quick processing time, with verification of just your credit history and income, no collateral requirement or third party guarantee, you can launch your online business in no time at all.

5. Meet Operational and Marketing Expenditures

Personal loans by Fullerton India are ideal when you need urgent funds to replenish inventory to keep up with consumer demand, to upgrade the plant and machinery, purchase raw material, invest in infrastructure, hire new employees or even to market your online business. The personal loan for self-employed can help you take care of your ancillary expenses, for example, insurance, compliance or regulatory requirements, partnership fees, etc.

For new business owners, it can be a challenge to manage cash flow in the first year of operation. If you require a line of credit rather than a loan so that you can withdraw the amount you need when you need, you can opt for Fullerton India’s Loan against securities. However, if the amount you need is small and less than INR 25 lakhs, a personal loan may be a better choice.

Must Read: A Guide To Get Personal Loan Using Aadhar Card & PAN Card

How to Apply for a Loan?

Take a look at this short guide on how to apply for a personal loan at Fullerton India.

1. Check Your Eligibility

It is best that you check up on your personal loan eligibility before making your loan application with Fullerton India with the help of our personal loan calculators Our basic criteria are as follows:

  • Being an Indian resident
  • Age between 18 to 65 years
  • Employed with a monthly income of at least Rs. 25,000 if living in Delhi or Mumbai and Rs. 20,000 for the rest of the country
  • Self-employed professionals are required to meet a certain minimum turnover and yearly profit after tax, which varies depending on the nature of business / industry.

If you are self employed, you can also approach your nearest Fullerton India branch. Our executives will be happy to guide you through our eligibility criteria and help you with your loan application.

2. Application

Visit the Fullerton India website and fill in the relevant application form with all required details. The next step is to get your paperwork ready and upload the same online. Finally, click on ‘Submit’. If, based on the information provided, you match our complete eligibility criteria, you will be notified within a minute and also receive an email notification. For verification purposes, Fullerton India needs you to submit the following:

  • Identity proof in the form of Passport, Voter ID, Driving License, PAN Card, Aadhaar Card, etc.
  • Address proof in the form of Aadhaar Card, Driver’s license, Passport, Voter ID, etc.
  • Employment proof (like appointment letter for salaried) / Business existence proof (like certificate of incorporation for self employed)
  • Income proof through salary slips (salaried) or audited financials (for self employed).
  • Banks statements of the past 6 months
  • ITR statements

3. Verification

Fullerton India verifies the information that you have submitted via the application form along with the documents uploaded online. Your credit history and worthiness will also be a key point of consideration in the loan approval process. The decision to approve or reject your loan depends on the applicant meeting all of the eligibility criteria, Fullerton India’s policies, and the success of various verification checks performed.

4. Loan Sanction and Disbursal

Once the decision has been made on approving the loan, a sanction letter is sent via email to the applicant. This also contains the agreement outlining the loan amount, interest rates, tenure of repayment, fees, charges, penalties and general terms and conditions of the personal loan for your online business.

The agreement must be signed and sent back to Fullerton India in order to initiate the disbursal formalities. Typically, it takes less than 24 business hours post receipt of the signed agreement for the loan funds to reach the applicant’s bank account.

Thus you can simplify the process of arranging for extra funds by availing a personal loan for your online business. If you have any questions, you can reach out to our friendly customer service department on the toll free number (1800 103 6001) or email us at [email protected].

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