personal loan for self-employed

Tips To Get A Personal Loan for Self-employed Persons

A personal loan is a multipurpose loan and can be used by self-employed persons, including doctors, chartered accountants, etc. It gives flexibility and ease of access for business growth. The personal loan amount can be up to Rs.10 lakhs depending on the lender and applicant’s profile. Lending institutions offer uniquely designed personal loans for self-employed individuals.

Here are the tips to get approved for a specifically designed personal loan for self-employed persons:

Check the Eligibility

Reputed lending institutions and NBFCs (Non-banking financial institutions) provide easy loans for self-employed individuals. One should check the eligibility conditions of a lender before making a loan application to avoid rejection. Lenders provide a free personal loan calculator on their official website. Borrowers are advised to use this calculator to make an informed decision.

Consider Interest Rates

Loan cost is the primary factor that borrowers need to consider before applying for a personal loan. It should be a competitive rate that can make loan repayment easy. Personal loan interest rates are affordable with reputed NBFCs.

Preparation for Documentation

Lenders need to authenticate their customers’ identity, address and income level. Therefore, they need some documents issued by the Indian government. Getting ready with the required documents helps to make an application faster.

Flexible Loan Tenure

Look for a lending institution or NBFC offering a personal loan for self-employed with a flexible loan tenure. It can be as long as 60 months.

For the convenience of application, borrowers can make an online application. If they are comfortable with offline processing, there is a facility for offline application also.

Also Read: 4 Important Things You Should Know About CIBIL Score to Avail Personal Loan

Tips For Self-Employed To Get Your Personal Loan Approved

personal-loan-disbursement

It is easier than ever before to get a personal loan approved. But, many people still face loan rejections. In this article, we are sharing some of the important tips which you can use to get an instant personal loan approved. 

  1. Always know your credit score – Knowing your credit score means you can know if you meet the minimum requirement that the lender requires. For example, if the minimum requirement is 750 and your score is 650, then you are not eligible. You should spend time building your credit score to meet the eligibility of a personal loan for self-employed before applying.
  2. Have all the documents ready – As a self-employed individual, you have to keep your age and address proof, ready. You also need to submit bank statements for the last six months along with Form 16, and ITR returns. When submitting your application form, you have to submit all the documents. If you are hoping for an instant personal loan online, then you need to ensure the documents are in the format the lender has stated.
  3. Be aware of the other terms and conditions – Each lender has several requirements for their personal loan for self-employed individuals. Some of these are
  4. Age – 21-60 years
  5. Maximum loan amount – Rs. 25 lakhs
  6. Loan tenure – From 12-60 months
  7. Interest rates – starting from 11.99%
  8. CIBIL Score – 750
  9. Debt –to-income-ratio – You cannot have more than 65% of your income as EMI

These are the general criteria and will vary across lenders.|

Additional Read: Which Type Of Loan Is Best For a Self-employed Person?