Any Indian citizen can apply for a loan in India but at the time of loan application, the applicant must have attained the age of 18 years. Moreover, other important requirement for the applicant of loans for business are possession of an active bank account which must not be less than three months old, proof of residence and income. There are also loans in India that are specifically tailored for the unemployed citizens in India. Such unemployed applicants may have to furnish many other documents along with the documents that are required for an earning applicant.
Of course, it is an herculean task for an unemployed person to gather an amount of money to start a business. However, to begin, such aspirants can always look for loans in India particular meant for them.
Unemployed people in India are normally not in a position to pledge any asset for getting a personal loan. Hence, loans meant for them are normally unsecured loans which do not require securing valuable assets. The personal loans available in India are meant for personal purposes like paying educational bills, purchasing a house or a car, renovating an existing home, going for a vacation etc. In fact, this kind of personal loan can also be utilised to get started with a business.
While applying for a loan, one must always ensure that his credit score is good. An applicant can be sure of a good credit score if the applicant had never been in bankruptcy or experienced CCJ, arrears, defaulting debt repayments, IVA etc. Had the applicants experienced any of these tags, they are likely to bear a poor credit score. Therefore, individuals with a poor credit score must always strive to revamp their credit score which generally gives a poor impression of the applicant. With a poor credit score, one is likely to get a smaller loan amount. It may also not be able to fetch for you a decent rate of interest. At times, adverse rating may also not allow you to have longer repayment term. On the contrary, had the borrower revamped the credit score prior to application for the loan, it would have a positive impression on the lender about the borrower. Good credit score reflects the loan repayment capability of the borrower in question.
Nevertheless, a prospective entrepreneur who is besides himself to get started with a business but unable to start just because of adverse credit can look for a loan designed for bad credit holders in the country. With the help of the business loans meant for people with a bad credit, a potential entrepreneur would be able to plunge into his cherished business. Primarily, secured and unsecured are the two type of business loans in the Indian loan market.
Individuals who are interested and are able to pledge an asset to get personal loans to start a business should just secure the available asset to get the loan because such a pledge will be able to fetch a lucrative and low interest loan deal. The assets that can be pledged may be a house, car or any other property that has got a market value. If an applicant is not interested in a pledging, he can still apply for a loan and there are personal loans that do not require any pledge of property.