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A professional loan is given to a trained professional looking to set up or upgrade their trade.
As the name suggests, a professional loan can only be availed by professional and self-employed individuals such as doctors, lawyers, chartered accountants to make any investment in their business.
A professional loan is an unsecured form of loan, which means that the borrower would not be required to keep collateral against the borrowed money. However, the individual needs to be well-versed in their profession and should possess a veritable certificate to prove their expertise in the field.
On the other hand, a personal loan can be borrowed by both salaried and self-employed individuals to meet personal financial expenses or make an investment in their business.
Some banks offer personal loans to salaried individuals only, but most digital lenders, such as MoneyView, offer personal loans to both self-employed and salaried persons.
Personal loans are also unsecured loans that can be taken to meet a number of expenses- to finance education, pay for a trip, meet a medical crisis, or pay off existing debts.
It is a versatile form of a loan as it can be used to meet different kinds of financial needs, which is unique to personal loans alone.
Professional loans have some attractive features which distinguish them from other types of loans. Opting for a professional loan is recommended against a personal loan if you are a certified professional looking to expand your trade.
For example, if you want to renovate the space of your practice, purchase some advanced equipment, or publicize your business, you can opt for a professional loan. One exclusive feature of professional loans is that they are tailor-made to suit the precise needs of your practice.
The business needs of an insurance agent will differ from those of a lawyer. Both these practitioners will have different trade-specific needs and, consequently, need for other loan plans.
Professional loan plans can be customized according to the specific needs of your business so that the advantages to your business are maximum.
Personal Loans can act as a saving grace when there is an urgent personal expense to tend to.
If you’re planning to buy a house but fall short of money, you can opt for a personal loan instead of a home loan.
The added advantage is that while you would have had to mortgage your house in the case of a home loan, a personal loan can be availed without the need to provide any surety/collateral.
Besides buying a house, a personal loan option may be available to meet a host of other requirements, such as planning a wedding, taking a vacation, making an expensive purchase, etc. Personal loans are a lucrative option as they do not require security and can be disbursed almost instantly.
There are a number of banks and money lending organizations that loan out money at different rates of interest, tenure, etc.
Both personal loans and professional loans are now offered at competitive rates of interest and flexible repayment tenures. The whole money-lending business has undergone a digital makeover, which means that you can now apply for a loan and receive the loan amount from the comforts of your house within as early as 24 hours.
This makes the entire loan application process entirely digital and paperless, with minimal documentation.
To apply for a personal or a professional loan, visit an acclaimed money-lending website or download the app on your phone.
MoneyView is one of those personal finance solutions that you can rely on. It offers personal loans starting at an affordable rate of interest of 1.33%.
MoneyView’s loan application process from start to end is quick, digital, and paperless, with the money being transacted within an hour of verification.
The general documents required to apply for personal and professional loans are given below. However, you might be asked to submit additional papers depending on the specific requirements of the bank or financial institution you apply to.
Professional loan applications require a few additional documents compared to personal loans that attest to professional expertise in the craft for which the loan is needed.
Apart from this, both personal and professional loans are now given at competitive rates of interest with flexible loan amounts and repayment tenures, enabling borrowers to make a choice from a host of available options.
Originally posted 2021-11-24 11:41:57.
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