If you're self-employed, the line blurs fast. Here's a practical framework to choose right.
Personal loans are unsecured, fast, and end-use agnostic — perfect for one-off needs like a medical emergency or wedding. Rates start at 10.5% and tickets typically cap at ₹40 lakh.
Business loans are sized for working capital and growth, with longer tenures and larger tickets. They require GST returns and 2+ years of vintage but offer better tax treatment because interest is a business expense.
If the end-use is genuinely business — inventory, equipment, payroll — always pick a business loan. The tax shield alone usually beats the slightly higher headline rate.
