With each passing moment, a new startup hits the headlines, which makes you wonder if your startup journey is just around the corner waiting to change the world or not. Whether or not you think you’re ready to set out on your entrepreneurial journey, it is always good to recognize if you’ve got what it takes. So here’s a checklist for you to figure out if you possess the traits needed to succeed as an entrepreneur:
- You’re feeling out of place at your job, or looking for autonomy in your work
- You enjoy being on your own.
- When others see problems, you see opportunities.
- You’re just as good at understanding people’s psychology. You know exactly what people want and have a vision to make it all come true.
- You have the urge to constantly keep growing.
- You have a knack for taking calculated risks.
- You’re an ‘ideas’ person and see the big picture
- You’re always curious and tenacious
Have this checklist made you realize you have what it takes to be an entrepreneur? If yes, then here’s how you can get a helping hand with financing your dream startup idea.
A loan is the most practical choice in case you initially wish to keep your business’s equity intact without selling any stake. While there are several loans for every specific purpose, one you can never go wrong with is loan against property.
Loan against property (LAP) is a loan taken by businesses and individuals against the mortgage of their property. This type of loan is a secured loan, meaning the borrower has to pledge a property as collateral. This property can be residential, commercial, or land and its market value decides the loan amount, of which the borrower can avail up to 90%. Besides the property’s value, the lender considers various factors like the borrower’s credit score, profession, income, documentation, and insurance to determine the interest rate.
It is important to note that in case the borrower fails to repay the loan, the lender may take possession of the property and put it up for auction to recover the amount. Hence, it is recommended to borrow only what you need.
The reason LAP is preferred over personal loan is its lower interest rate. LAP’s interest rates are one of the lowest after a home loan. Even though a home loan works to make the home buying process convenient, it does so only in case of buying a house. When you need funds for a variety of uses, LAP is the ultimate choice.
It is popularly used to fund large expenses such as business expansion, home renovation, big fat Indian wedding, abroad education, and so on. Due to this flexible end-use, it is one of the most popular financing options in India. Because it is a secured loan, the amount disbursed is higher than other loan types. Hence, it is highly preferred by those in need of a huge amount, like people seeking to finance their startup.
Financial institutions do offer business loans but they are reluctant to lend to new businesses without security. Secondly, lenders demand a strong business plan to give out business loans. It is generally challenging for new businesses to be convincing enough with their existing finances. This is where LAP brings in the capital amount. Loan against property for NRI is also ideal for a lot of those who return from abroad with the motive of starting a business back home in India.
Additionally, you can repay the loan amount over a period of 20 years in EMIs(This is subject to the lending Bank’s terms and conditions on loan repayment tenure). With the longer tenure, it becomes easy for the business to repay as compared to repayment tenure of 60 months in personal loan.
Loan against property is a versatile option of financing which applies across a number of situations. Its higher loan amount, lower interest rates, and longer repayment tenure make it an ideal choice and a favourite among entrepreneurs. So, bring forth that idea and embark on your entrepreneurial journey with a LAP in association with famous banks like Karnataka Bank that provides loan against property with simple processing and quick sanctions.
