Everything You Need to Know Before Applying for a Personal Loan for Self Employed

When it comes to availing a personal loan for self-employed, it would not be wrong to say that many people are still in a dilemma, i.e. whether self-employed individuals can avail a personal loan or not? So, here comes the answer! Yes, self-employed individuals can also avail a personal loan so as to meet their varied needs. There are many top lenders in the country, which are best known for offering the loan to such applicants. So, before you go ahead with the process, let’s just know what self-employed basically are:

Who are Self-employed Individuals?

The self-employed borrowers are basically those individuals who own the incorporated business by themselves. These individuals are basically the sole owner of the business. Just like any other salaried employee, it is absolutely easy for a self-employed person to get the loan.

Let’s just know the eligibility norms below:

Eligibility for Self-employed

Though, the eligibility criteria differs from bank to bank. So, let’s just make you aware of the general criteria below:

• The applicant should be a resident of India

• The minimum age of an individual should be 21 years and maximum should be 60 to 65 years at the time of loan maturity

• The minimum turnover profit should be according to the lender’s requirement

• An individual should have the minimum work experience of at least 3 years in the current business

Interest Rates:

If we talk about the rates, they usually range between 10.85%-25% per annum that can be given according to your profile. Yes, your credit score and other eligibility norms matter a lot as far as deciding on the lowest personal loan interest rates are concerned. However, one thing that needs to be mentioned here is the fact that if you are an existing customer of a bank, it would be easy for you to negotiate for the lowest rates. Based on your past record and credit history with the bank, you can expect to get a loan at better rates and enjoy a hassle-free journey.

How to Apply for a Loan?

You can either opt for an online or offline mode to apply for this credit facility. Different processes through which you can fill the application are:

• Visit the branch

• Online application

• Through email

• Over the phone

Documents Required

Go through the complete list of documents below, which are required to avail this credit facility:

• The duly signed application form

• Passport size photograph

• Proof of ID – Passport/ Voter ID/ PAN Card

• Proof of age – Birth certificate/ passport

• Proof of residence – Passport/ Utility bill/ Allotment letter

• Proof of income – Latest Income tax return (ITR) along with computation of income, Last 2 years Balance sheet and profit and loss certified by a CA

• Proof of Signature verification- Passport/ PAN Card

• Bank statement – Last 3 months bank statement/ last 6 months bank passbook

Reasons to Avail a Personal Loan

Personal loan for self-employed can be availed for any of the reason:

• Credit Card Dues

• Emergencies like Hospital Expenses

• Marriage Expenses

• Margin money for the Home

• Home Renovation

• Travel Expenditure