The housewives of the present day are much different from the ones of last decade. Most of them are educated, smart and ambitious. Along with taking care of the house and the family, they are keen to explore the world outside the four walls of the home. Many of them step out of the home for a day job while some others dream to have their own business.
Finding a job which matches your skills is easier than starting a new business. Every business which excels comes with a unique idea. Many of the housewives have such unique ideas in their brain but could not give life to their ideas as the fuel called fund lacks. The fund is the lifeblood of any business at any stage. It is an adequate amount of money which has the power to make your idea give a physical form.
A business loan is the funding option exclusively for fulfilling the need for money for a business. But unfortunately, getting approval on a business loan application is not a child’s play. There is a long list of criteria which the business and the applicant has to fulfil in order to avail the loan. Getting a business loan for such businesses which has not yet started is near to impossible. A business loan is for the businesses which are established ones. After a business loan, the next funding option left is a personal loan. Being a multipurpose loan, one can use a personal loan to start a business. Let’s understand how a housewife can avail a personal loan to start a business.
Personal Loan to Start a Business
The first criteria to avail a personal loan is the steady source of income. The income of the loan applicant is considered as an important factor to qualify for a personal loan. Every lender keeps a minimum income range to ensure the repayment of the loan. If you are an unemployed or a housewife without a regular source of income, availing a personal loan may need some tips and tricks to be applied.
How a Housewife Can Avail a Personal Loan
Opt for a Secured Loan
Secured loans are the credits that are availed against some asset of the lender. The lender will undertake the possession of your asset until the loan is repaid in full. If the borrower if failed to repay the loan, the lender will be authorized to sell the asset of the borrower in order to get the lent money back to the source. A secured loan can be taken against a number of assets such as real state property, shares, home equity, personal vehicle, jewellery, paper investments etc. If a housewife owns any of the assets that can be used as a collateral of loan, availing a personal loan will become an easy affair for her.
Add a Co-Applicant
The next way to avail personal loans by housewives is to add a working co-applicant. One can take a joint personal loan with their working husband or earning father. The loan will be provided depending on the income of the co-applicant. Even the maximum loan amount will also be a multiple of the take-home income of the co-applicant. The co-applicant of the loan will be equally responsible for paying regular EMIs.
Add a Loan Grantor
If you are assured that your business will earn revenue and you alone can pay off the loan without any financial support, you can add a loan grantor instead of co-applicant. A loan grantor is an individual who agrees to pay off the loan if the prime borrower defaults it. Adding a loan grantor who has a high credit score and an excellent credit history can make you avail the loan without any difficulties.
Gold is such a metal which is present more or less with every Indian woman. One can make the best use of their gold ornament by availing a loan against it. The gold ornaments which was laying ideal in your locker has the capacity to make you avail a gold loan which is actually much cheaper than unsecured personal loans. A gold loan is one of the best ways to avail a personal loan for women.
A personal loan can be a great alternative to a business loan for the ones who are not eligible for a business loan. Many experts on personal finance advice to take a personal loan at the beginning of the business. Once the business starts running well, one can easily avail business loans to invest in the business. The housewives who are interested in starting their business, a personal loan can become one of the best ways to fuel their ideas.