Personal loans are the most accessible loans to mitigate an immediate financial crisis. Being unsecured, lenders heavily rely on the CIBIL score and income threshold limits of the applicant for sanctioning the loan. Hence the question arises, can the self-employed sector avail personal loans? Can a self-employed applicant get personal loans even when the credit score does not satisfy the lender criteria?

Let’s delve further for a detailed understanding.

Personal loans for self-employed

With minimal documentation and no collateral submission, personal loans are the most accessible credit options for self-employed or salaried applicants. However, since they are unsecured, lenders use stringent eligibility criteria. Listed below are the eligibility criteria for a personal loan for self employed individuals. Applicants should note that the requirements are different for each lender.

Parameters	Criteria
Credit score	650 or above
Age limits	21- 65.
ITR	Applicants should have filed  Income tax returns for the past 2 or 3 years.
Income	A minimum profitable income after-tax which should be a viable amount in the corresponding industry
Work Experience	1 year

Applicants can further verify their eligibility using free online personal eligibility calculators. Applicants who possess a low CIBIL score are generally considered to have risky profiles. Such applicants can either apply with a guarantor who owns good CIBIL scores or ask for other secured loan options from the lender.

Conclusion

Immediate financial crisis can be addressed through easy personal loans. Being unsecured loans, maintaining a good CIBIL score along with other eligibility factors, improves the chances of loan approval.

Must Read: Self-employed? Here is how you can avail a personal loan