How to get Small Business Loan for your Beauty Salons?

A beauty parlor/ salon makes a lucrative business avenue specially for women entrepreneurs. The beauty/spa scene has been exponentially growing big across the globe including India. This has spiked up the demand for beauty experts/ professionals who can provide quality services to the needy customers.

What types of loans are available for Beauty Parlors?

As we already know a beauty parlous falls under Small & Medium Enterprises, therefore both of these have some attractive financial offers at hand. Let’s see the underlined below:

Term Loan: This is the good financing option to get premises on rent/lease or purchase tools and equipment. Term loans can be made available in 2 different forms; short term loans & line of credit. Term loans can also be known as Personal Loans. So, whats better than taking a collateral free, personal loan. You can conveniently choose an online personal loan by Home Credit. It is almost like your ‘all weather’ friend to cater to all purposes and leave your savings safe. An instant personal loan is multipurpose and available without any collateral guarantee/security from us.

Working Capital Loan: A working capital loan clearly helps to meet the immediate need for money to smoothly run a small set-up. A borrower has to chalk out clear budgets to apply for any kind of loan. The specific reasons and needs help expedite loan disbursal. This reduces unnecessary loan amount onto your shoulders.

Eligibility Criteria of Beauty Parlors Personal Loans

Understanding the eligibility criteria of Personal Loans for Beauty Parlors

An aspiring entrepreneur must take time to understand the eligibility criteria listed out by Home Credit & then apply for a personal loan for business.

• Be an Indian citizen aged between 18 and 60 years.
• Have valid ID proof and current address proof.
• Be employed, self-employed, or a pensioner.
• Maintain an active bank account.
• Ensure a minimum 90-day interval between two Home Credit loan applications.
• Demonstrate a monthly household income exceeding ₹25,000. “Household” refers to an individual family unit comprising a husband, wife, and their unmarried children.
• Need to be an existing customer of Home Credit (should have availed Ujjwal EMI Card/ Consumer Durable Loans/ Personal Loan/ Flexible Personal Loan in the past).

A solid groundwork is necessary to narrow down your options suitable for your needs. Next step is to conduct an online R&D on the products & gather information on the loan terms, eligibility criteria, documentation process, etc.

Of course, documentation plays a key role in personal loan applications. Home Credit Loan requires just 2 immediate documents, mainly PAN card & Aadhaar. That is it!

A personal loan is much easier compared to typical business loan. Along with your application, you will have to attach past business experience, achievements or milestones to boost your case.

Personal Loan for Business

Here are a few pointers to start you up with a Personal loan for business:

Quantum of Loan: A Home Credit Loan can be availed up to ₹5,00,000 , starting ₹10,000. It’s always better to measure all parameters before deciding the loan amount.

Guarantee/Collateral: Personal loans for Business doesn’t require some kind of guarantee or collateral. Generally, part of machinery or equipment purchased is hypothecated to the bank as collateral or security. But Home Credit provides loan, collateral free.

Rate of Interest: The current interest rate for small business loans starting as low as 19.5%.

Repayment Tenures: Our Personal loans usually come with a repayment tenure of 9-51 months.

Credit history: As a loan company, Home Credit is considerable of the income diversity & rate of default. Of course with a healthy credit history, loan process is smoother. So, obviously it’s better to have a clean record before applying for the loan. However, at Home Credit we provide Personal loans to existing customers!

Being a part of the private sector, beauty salons are built with good hygiene and quality equipment. Clearly huge funding is required to meet quality standards and third-party expectations. So, besides the land/ property costs, a sizeable amount goes to buying & managing the latest tools and equipment.

We also experienced lately how the Government of India has introduced support schemes for small and micro business units, with a few providing preferential treatment to beauty parlors.