Personal Loan For Startup

Here’s the formula that is used to calculate your EMI:

E =[P x R x (1+R)^N]/[(1+R)^N-1]

Here in the equation,

E stands for EMI

P stands for principal loan amount

R stands for the monthly rate of interest

N stands for tenure period.

Example:

P = ₹5,00,000

Annual interest rate = 11.99% p.a

R = 11.99% / 12 / 100 = 0.0099

Loan tenure in years = 5

Number of monthly installments (n) = 5 * 12 = 60.

Now, let's substitute these values using the ersonal loan EMI calculatorp formula:

EMI = [500000 × 0.0099× (1 + 0.0099)^60] / [(1 +0.0099)^60) - 1]

EMI = ₹11,120

Hence, assuming a startup loan of ₹5 lakhs at an interest rate of 11.99% for a tenure of 5 years, representing your monthly repayment amount.

Comparison of Loan Lenders For Startup

The table below summarizes banks providing loans for startups along with various NBFCs. Refer to the table to know about SBI startup loan interest rates to trusted NBFCs like LoanBaba:

Types of Loans Offered for Startup

From working capital to equipment financing, discover the funding options essential for nurturing and propelling your startup to success. Here is the list of types of loan offered for startups.

Working Capital Loan: this type of short-term loan provides up to Rs. 40 lakh for daily business needs and expansion. This aims to enhance cash flow, purchase raw materials, and aid in business growth.

Term Loan: this type of loan is collateral free, and provides loans up to ₹2 crores with a repayment tenure ranging up to 5 years. It supports short to long-term financial needs with collateral-free options.

Letter of Credit: this start-up loan provides funding assurance for international trade transactions and aims to enable secure transactions with unknown overseas suppliers.

Overdraft Facility: this type of start-up lender allows withdrawal even with zero account balance. Hence, providing flexibility and immediate access to funds as needed.

Equipment Finance or Machinery Loan: funding for purchasing or upgrading equipment/machinery. Equipment finance is used mainly by large enterprises and enterprises in the manufactured sector.

Loans under Govt. Schemes: various loan schemes started by the Government of India to provide financial support for individuals and businesses, aiding growth.

Point-of-Sale (POS) Loans: provides cash advances based on future credit/debit card transactions.Provides help for short-term cash crunch for SMEs with convenient repayment tied to POS transactions.

Features and Benefits for Personal Loans for Startup

Explore the essential features and benefits that accompany a personal loan for startups:

Steps to Apply Only for a Personal Loan With Buddy Loan

Follow these quick steps to apply for your personal loan for startup with BuddyLoan:

Step 1 - Visit buddyloan.com or Download & install theBuddy Loan app.

Step 2 - Fill out the application form, including the loan amount, the tenure in months, and contact details.

Step 3 - Fill out the following personal details where required:

• Email Address
• Employment Type : Salaried/ Self-Employed
• Company Type
• Industry Type
• Current Company Name
• Company Address
• Year of Employment
• Net Income
• Mode of Salary
• PAN Card Details
• Full Name (As Per Pan Card)
• Current Address with PIN Code
• Mobile Number

Step 4 - Submit the details & wait for the loan confirmation.

Conclusion:

Startup loans provide the opportunity and vital financial fuel to turn innovative ideas into thriving businesses. Not just that there are suitable loan options like startup loans for women to empower and enable female entrepreneurs to strive.

Now it's your time to take action and apply for the startup loan that will fuel your entrepreneurial journey. Seize this opportunity, and secure the funding you need with Buddy Loan.