1 December 2023
Personal Loan

Nowadays, you can easily apply for a Personal Loan online. It has become more straightforward and secure with the blessings of technology. It is available for both salaried and self-employed individuals.

Read on to learn the basic concept of Personal Loans for self-employed individuals.

Eligibility criteria to avail online Personal Loan for self-employed

Here are the eligibility parameters of a Personal Loan for self-employed individuals –

  • Credit score: Minimum 750 or above
  • Age: 21 to 58 years
  • Monthly income: At least Rs.15,000
  • Business vintage: At least 2 years

These are some tentative requirements, and the actual eligibility details will be available on the official website and mobile app of your preferred lender. Check here for more information.

Documentation required for a Personal Loan for self-employed applicants

Here is a list of loan documents for Personal Loans

Identity proofPAN/Aadhar/passport, etc.
Address proofAadhar/ration card/ electricity bill, etc.
Business proofBusiness registration details, tax registration copy, etc.
Income proofITR or profit and loss statement
Bank account statementLast six months’ bank statement

The application process for the Personal Loans for self-employed borrowers

Here is a step-by-step guide on the application process for Personal Loans online –

Step 1: Visit the website or mobile app of the financial institution

Step 2: Head over to the Personal Loan section and find the option to apply

Step 3: Enter your basic details like – name, contact information, income, etc., and complete the form fill up

Step 4: Submit the required details to complete the KYC process

Step 5: Fill out your bank account details and submit the form

Once you submit the online form, the lender will look through it and approve the application if everything is in order. You will receive a notification of this approval via the registered phone number and email ID. After that, you will get the loan agreement and e-mandate, which you must sign and submit. Once you complete this process, the funds will be credited to your account.

Benefits of Personal Loan for Self-employed

Now that you know the application process, eligibility, and documentation of a Personal Loan, let’s understand how you can benefit from it –

·       Don’t need any collateral: Being an unsecured loan, you don’t need to submit any collateral to secure the funds. The application process becomes seamless.

·       Get the funds quickly: Due to less paperwork and a short verification process, Personal Loans are quickly approved and disbursed. An ideal solution for any financial emergency.

·       Has no restriction on its usage: There is no end use for your Personal Loans, and you can use it for any purpose like – travelling, weddings, shopping, etc. Therefore, a Personal Loan will solve all of them if it is a planned expense or otherwise.

·       Flexibility in repayment: Personal Loans are hassle-free to manage, with the liberty to choose a suitable repayment term and multiple options to pay the debt.

Final words

This is an overview of Personal Loans for self-employed individuals. With all these details at your disposal, you can now easily make an informed borrowing decision. However, remember to read the loan terms to avoid future problems.

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