A personal loan allows you to access credit in times of need without pledging any asset as security. This form of credit is exceptionally useful, as you may not always have the fiscal means necessary to meet your needs, be it during an emergency or for a personal or professional goal. Until now, personal loans were offered freely to salaried applicants, as this form of credit is unsecured in nature. In other words, with no collateral as a safeguard and only a credit score to depend on, lenders minimise the risk by offering personal loans to those with regular income. However, top lenders now offer personal loans to self-employed borrowers too.
Take a look at all you need to know about a personal loan for self-employed applicants, so that you can tackle both emergencies or planned expenses stress-free.
Features of a personal loan for self-employed borrowers
Like a regular personal loan, you can enjoy funding without the need to pledge a collateral when you take this loan. However, the benefits that you enjoy are dependent on the lender you choose to borrow from. For instance, when you borrow a Personal Loan For Self-Employed applicants from a top financier, you can enjoy a sanction up to Rs.30 lakh at nominal interest rates.
Further, the industry-first Flexi Loan facility allows you to borrow multiple times, as you need, from your sanction and repay whenever you have excess funds. You are only charged interest on the amount you use and you can choose to pay interest-only EMIs too! You can then repay the principal at the end of the tenor to manage your cash flow better.
Eligibility criteria of a personal loan for self-employed borrowers
While the eligibility criteria for a personal loan for self employed applicants may differ amongst lenders, here is the general requirements of lenders that have minimal eligibility criteria.
- You need to be within the age of 25 to 55
- Your business must be at least 3 years old
- You must have income tax filings of at least the past 1 year for your business
To prove your eligibility, you will need to submit documents like KYC, business proof, passport size photograph, bank account statement, and other relevant financial documents.
How to apply for a personal loan for self-employed borrowers
In order to apply for a personal loan as a self-employed individual, it is important you first narrow down on a lender. Once you have done so, check the lender’s eligibility criteria to ensure you match their requirements. You can then apply offline by visiting their nearest branch. If you have chosen a reputed lender, you can also apply online via their website. Lenders offer the convenience of applying online through a concise application form. After the initial approval, you can keep all necessary documents ready and expect a call from a representative to schedule your documentation pickup. After the verification, you will receive the final approval on your collateral-free personal loan, and the amount will be credited in your bank account in as few as 24 hours!
Now that you are well aware of all the aspects of a personal loan for self-employed borrowers, you can make an informed application for it during emergencies and to address your goals, be it for your work in order to update your software, hire more people, or fuel working capital or for other reasons such as a home uplift during the festive season, your daughter’s education or wedding, or medical costs.