Staying fit is the secret to a healthy body and mind. And this principle is being preached by if not all, at least the majority of the people across the globe. As such, fitness clubs, health centers, and gym centers are gaining increased prominence.
However, regardless of whether you are running such a center or intend to open a small gym at your place, not everyone is capable of shelling out so much of money all at once. And this is when the importance of fitness loans can be weighed.
In this write up, let us find out how you can go about availing these loans and most importantly, the essential aspects of these loans. So, read on for more insight.
What are fitness loans?
Fitness loans are basically loans extended to businesses engaged in the fitness industry (as mentioned above, individuals or companies running gym or health centers). This loan is basically availed to purchase the following, aside from several other health related equipments that are required in the gym.
Mats required for exercises
Weight sets and individual weights
Duration of fitness loans
Similar to short term loan, this particular fitness loan can be availed for a period of a year or two. Also, these are made available to businesses on a long term basis too. So, the duration of the loan will depend on how much amount you have applied for in order to buy the fitness equipments. As such, if you need more number of equipments, the cost of the same will be higher, and the amount you apply for will be in accordance to the same.
Aside from this, the so called “useable life” of the equipments will also determine the term of the loan on the basis of certain terms and conditions that the business organization is expected to adhere to and comply with.
Identifying the best fitness loan lenders/service providers
The lenders of these fitness loans extend the proceeds of the loan through banking institution, government agency, or a private lender. There are several terms and conditions that the businesses have to abide by and the ones that are usually mentioned in the loan agreement at the time of disbursement of the proceeds of the loan. Alternatively, you can also find out whether or not these loans are similar to short term loan online. In other words, whether or not these loans can be availed virtually can also be found out.
Prerequisites for availing a loan
Prior to availing these loans or applying for one, there are few important aspects that are taken into account or you need to assess. These are as follows-
The loan amount you actually require for the health center that you are running or intend to start.
The FICO score as recorded in your credit report
The mode of repayment of the loan
The collateral that you intend to use will also have to be mentioned or discussed with the lender.
Last but not the least, the status of the applicant, whether he is single or a group of people.
Rate of interest attracted by fitness loans
The rate of interest that these fitness loans attract is perhaps the most crucial aspect that you need to take into account prior to signing on the dotted line. Your credit score is perhaps one of the most vital parameters that will determine the rate of interest that you are entitled to enjoy. And if you have not been financially responsible lately, the same will be reflected in the rate of interest that your fitness loan will attract.