Personal Loan for Self Employed
If a self-employed person can show proof of income, obtaining a loan will be a breeze. Before granting a loan to a borrower, lenders scrutinize their documentation, and income proof is one of the items on which they keep a close eye. As a result, by presenting it and all of the relevant paperwork, a self-employed candidate can get a loan without any problem. However, to get the greatest deal from a lender, one might haggle for appealing personal loan rates and reduced fees.
When it comes to self-employed borrowers, these are individuals who own and operate their own unincorporated firm. They are the only proprietors of the company. However, many people believe that because self-employed persons are not salaried, it will be difficult to obtain a personal loan, but this is not the case. A self-employed person can get a personal loan just like any other salaried worker.
Rate of Interest that Will be Charged on Personal Loan for Self Employed
The interest rate differs from one bank to the next. And it often ranges from 10% to 25%, depending on your profile and the policies/scheme you choose. In fact, before taking out a personal loan at this interest rate, a person must meet the qualifying requirements. If the candidate’s profile fits the bank’s needs and the candidate maintains a positive relationship with the bank, they may negotiate a lower interest rate. Furthermore, different lenders charge various rates of interest from self-employed people based on their characteristics. As a result, it is critical to confirm the interest rate with the bank before applying for a personal loan.
Self-Employed Personal Loan Eligibility
The eligibility requirements vary from bank to bank, but the following are the typical eligibility criteria that must be met for a personal loan to be approved:
- The applicant must be an Indian citizen.
- At the time of application, the applicant must be at least 24 years old, and at the time of loan maturity, the applicant must be at least 65 years old.
- The applicant’s minimal income or profit should meet the lender’s requirements.
- At least three years of job experience in the current industry.
- A minimum annual income of Rs. 1 Lakh is required.
Documentation Required
In general, the lender will require the following documents. The documents must be genuine and valid.
- The application form, which has been duly signed.
- Photograph the size of a passport.
- Identification is required.
- Age verification
- Proof of address
- Proof of earnings
For most lenders, these are required documents that must be submitted to be approved for a personal loan. The loan can be used for almost any purpose that does not necessitate the use of reason. It’s a multi-purpose solution with its own set of flaws. In comparison to other loan products, it has a high interest rate. As a result, you should exercise caution when obtaining one for yourself. Before deciding on a loan, you should do some research. Even though you have a limited number of lenders due to the lack of income verification documents, you should properly check with all of them and choose the one with the best benefits.
How do I apply for a personal loan as a self-employed person?
You have all of the options when it comes to applying for a personal loan. You have the option of filling out the application online or offline. The following are the many methods for completing the application:
Application over the internet
You only need to go to the bank’s website and fill out the application form with your personal details. You can also apply using your login ID and passwords through Internet Banking.
Pay a visit to the Branch.
To acquire the loan, go to the bank branch with all relevant documents and submit them.
Over the Phone
Make contact with customer service.
Wrapping Up
A personal loan can help you with whatever you need right now. A Flexi loan has various functions and no constraints on how you can utilize the money you borrow. You can put the money toward personal expenses like a family vacation or a wedding. You can also use a self-employed personal loan to handle immediate business needs such as overheads or unanticipated repairs.
You can choose a loan amount up to Rs. 25 Lakhs and repay easily between 1 and 5 years depending on your financial position when you apply for personal loans on Finserv MARKETS. To help you realize your objectives and life goals, you can foreclose your loan early without incurring any fees and take advantage of excellent interest rates.
