Nothing enthralled Jay more than photography. At the break of dawn, he would sneak out of his house with his dad’s digital SLR camera. The goal was to frame the rising sun while everyone was still asleep. He was chided by his parents and school teachers for being late to school. But Jay would do anything for a good snap. As he grew up, Jay’s passion for photography became more intense. He wanted to capture wildlife images. But his prized Nikon D3300 could not get the job done. Action cameras were way beyond his means. Jay wondered if someday he could get hold of those prohibitively priced Sigma Telephoto lenses. He could mount the lens on his camera and live his passion.
Setting up a business with a personal loan
As Jay struggled with small-time jobs, there came a point when he felt enough was enough. He took the plunge one day and applied for a personal loan. He decided to try his hand at something he loved. The loan approval came through. In no time, he had the fancy moonlights and strobes, light modifiers, and reflectors. Along with them came two professional cameras. Jay had a grand plan. He was setting up his first photo studio.
Applying for a personal loan
Jay applied for the personal loan just as anyone else would do. He procured his CIBIL score, which was in excess of 700. He then filled up the application form and handed it to the lender. In addition, he attached all the requisite documents. These included proofs of age, income, and address. Personal loans are unsecured loans. Approval for them usually comes in within 72 hours.
Knowing the rates and tenure
Personal loans come with a higher rate of interest. This may range from 12% to 30%, depending on the lender. Jay’s Rs. 10 lakh loan had a tenure of 24 months. He had to pay back the lender within that period. Jay took the gamble.
Easy repayment procedure
Jay’s studio did very good business. The novelty factor earned him decent footfalls. He topped it up with his photo skills. Soon he had a steady bunch of loyal customers. Word of mouth brought him even more clients. From would-be TV soap actors to the not-so-photogenic, they were all there. Jay realised that paying off EMIs of Rs. 50,000 EMI was not difficult considering the work he was getting. He still had enough left with him every month. He was indeed living his passion.
The bottom line
Personal loans are an excellent tool for financing your goals. But it is advisable to do some window shopping before choosing a lender. This way, you could get the best offers in the market. Once the loan is sanctioned, make sure you have a fixed repayment plan in place for the EMIs. An EMI calculator can give you an idea about how much you need to set aside every month. Opt for a tenure that you are comfortable with. There is always the option of foreclosing the loan. But some lenders may charge a prepayment penalty. So do your research, take a risk and live your dream.
