The rise of ‘Make in India’ campaign has immensely favoured the growth of entrepreneurship in India. A major percentage of graduating students are opting for entrepreneurship rather than a full-time job.
Well, starting your own business isn’t a bad idea as long as you have the required skill set and the resources such as a proper business plan, proper skills, and education to manage a business, and most importantly sufficient funding. Yes, funding! Funding is probably the biggest reason 95% of startups fail to cross the 5-year milestone.
No matter how viable your business idea is and how high the growth potentials are, lack of proper funding can put an end to your dreams. So, what can you do to fund your business as long as it doesn’t become self-capable? The answer is by taking a loan. However, the biggest question is which one? There are tons of credit schemes available in India, but the aim is to find the right one.
As your business is relatively new and in the initial stage, it can’t afford to pay the high-interest rate of a business loan. So, you can go for a mortgage loan: a loan against property or a loan against shares instead and use the money towards the development of your business.
What are the possible mortgageable assets?
Mortgage loans are secured by collateral - assets pledged as security for the loan. But, you can’t mortgage any random asset of yours to obtain the loan, lenders are very specific about the type of asset which can be used.
Land/residential property: If you are taking a loan against property, you can use your residential plot or your own house or a commercial property owned by you as a collateral.
Loan against shares: In case you are planning to apply for a loan against security, you can mortgage your FD certificate, mutual fund bonds, debentures, and shares to avail the loan.
Bottom line: Don’t forget to read the terms before applying for any loan.
To know more about this, click here - What are the Types of Collateral Assets – Everything You Need to Know