Knowledge Centre

  • Knowledge is power
  • Information is liberating
  • Education is the premise of progress, in every society
Loans | December 09, 2020

Processing Personal Loan Vs Processing Business Loan

As the name suggests, both of the mentioned loans solve the purpose of credit aid for the
individual and the commercial requirements respectively. The individual objective for capital
requirements can be anything like home renovation, abroad vacation, educational expenses.

While the commercial needs can be loans for business expansion, purchase of new pieces of
equipment, hiring, etc. While considering applying for any of these, it necessary to
understand how does the processing works for both.

1. Eligibility Criteria

a. Personal: To avail of personal loan services, one must be a citizen of India
working with a public or private enterprise or an MNC.

b. Business: The businesses with a few vintage years and income statements
audited by a chartered accountant are the key criteria for a business loan.

2. Loan Documents

a. Personal: The list of documents required are identity proof like Pan card, address
proof like aadhar card, and income proof like salary slips or bank statement.

b. Business: The list of documents is different from that of Personal loans and includes
KYC documents, business proof showing business existence, and bank account statements.

3. Secured or Unsecured

a. Personal: They are unsecured credit aids which do not require any collateral from the

b. Business: Usually these are secured loans to rely on something if the business doesn’t
work. However, with emerging options day-by-day a few NBFCs have launched collateral-
free business loans as well.

4. What are its advantages?

Personal Loans: Its comparatively easier to apply for personal loans without providing any
kind of collateral. Also, it can be used as a consolidated repayment option for all your
existing loans.

Business Loans: They offer extensive tax benefits and deductions on the loan and is available
at a much lower interest rate.

In Conclusion

While applying for any of these, there is a considerable amount of difference to be analyzed
between personal and business loans. Personal loan products are accompanied by higher
interest rates but short tenure while business loans provide significantly larger capital and tax
benefits. Choosing between the two also depends on your capital requirement objectives.

Loan Form

Related Blogs

Frequently Asked Questions


Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • 4. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
  • 5.Investments in securities market are subject to market risks, read all the related documents carefully before investing.
  • 6.The securities are quoted as an example and not as a recommendation.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investors account.
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDLon thesame day.....issued in the interest of investors.
KYC is a one-time exercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. | (As instructed by SEBI, We hereby declare that we do engage in proprietary trading in all segment across the exchange.)
Effective communication & Speedy redressal of the grievances a. Register on SCORES portal b. Mandatory details for filing complaints on SCORES: i. Name, PAN, Address, Mobile Number, Email ID c. Benefits: i. Effective communication ii. Speedy redressal of the grievances link:
In case of grievances for any of the services rendered by Findoc Investmart Pvt Ltd write an email to
Mandatory updation of certain attributes of KYC of clients - The advisory is also displayed on the Depository website at following link:
1. NSDL:IN-DP-469-2020 2. Findoc Finvest Pvt. LTD. CIN no:U65910CH1995PTC016409 RBI REGISTRATION NO. B-06.00267 3. Findoc Investmart Private Limited CIN no:U74992CH2010PTC035180 SEBI REGISTRATION NO. INZ000164436 4. Findoc Investmart IFSC PVT. LTD CIN no: U65999GJ2017PTC095984 SEBI REGISTRATION NO. INZ000200735 5. INVESTMENT ADVISOR SEBI Registration no. INA100012297

Member I'd | Nse- 14697 | BSE- 6529 | MCX- 55205 | NCDEX- 01152


Registered Office :

1210/1211/1212/1213,1213A, Exchange Plaza, Near Mercury Hotel, Opp. WTC Tower, Gift City, Gandhi Nagar- 382355, Gujarat, India

Corporate Office :

4th Floor, Kartar Bhawan, Near PAU Gate No.1, Ferozepur Road Ludhiana -141001.

Copyright © 2024 FINDOC INVESTMART PVT. LTD. All Rights Reserved.

Developed & Content Powered by Accord Fintech Pvt. Ltd.

Open a Demat Account