I had been itching to start a business of my own since I was 30. The plan was ready and the market survey complete.The neighbourhood needed a camera equipment rental store. After some online research, I found the right wholesaler-supplier who was ready to offer handsome discounts. I turned a part of the ground floor of my ancestralhouse into my store.
The planning phase
I started talking to potential clients.I told them that birthday parties, weddings, graduation events could be so much more memorable.All they needed to do wasframe them right with the equipment I offer. The feedback I received was mind-boggling. ‘Lensation Picture Studio’ was about to be born.
A personal loan to my rescue
I then worked on the difficult part—arranging finances for my business. I estimated that the store décor would push me back by at least Rs 2 lakh. The racks needed to look snazzy.They needed to showcase the different brands of cameras, telescopic sights, camera cases, bags, and memory cards. There were also tripods, range finders, night vision equipment, and many other items. The equipment would cost around Rs 15 lakh. I applied for a personal loan of Rs 20 lakh, and was relieved when it was approved.
Easy repayment on EMIs
Paying off the Rs 30,000 equated monthly instalment (EMI) did not weigh on me much. This was true right from the beginning. The camera equipment rental business became a runaway hit. I was easily making around Rs 2 lakh a month.Besides, business peakedduring the wedding season.
My dream home@32
The excess cash in hand stoked my desire to own a house. Quick calculations told me that I would be okay paying off another Rs 40,000 a month towards a home loan EMI. I began hunting for a property not exceeding Rs 50 lakh.Soon, I found one to my liking at an upcoming residential project not too far from my ancestral house. It was a dream come true. I owned a home at 32.
Personal loans can quickly get you off the blocks in meeting working capital requirements. They really come in handy when you begin a small business of your own. This is especially true if it is a non-traditional one like the one I set up. It would have been really difficult for me to arrange collateral while taking the loan.But collateral would have been a requirement forany other loan.
If you plan to take a personal loan, keep in mind a few things. Personal loans are ‘unsecured loans’.So, they attract a higher rate of interest. The higher interest rate is in the range of 15–32%,although they vary from lender to lender. It compensates for the risky nature of the loan. Personal loans are collateral-free.So, it is fairly easy to get. Ensure that you are credit worthy by obtaining your CIBIL score from the website. You would haveto pay a nominal fee. A CIBIL score is the first thing a lender will assess before sanctioning a loan.Any score in excess of 700 is acceptable.