What is a Personal Loan?
A personal loan refers to the type of unsecure loan which you can take to fulfill your immediate personal needs. You do not need to keep anything as collateral when it comes to personal loan. Banks and NBFCs offer personal loans based on borrower’s CIBIL score, financial history, capability to pay off the loan etc.
Personal Loan For Self Employed:
Banks and NBFCs offer personal loan to salaried as well as self employed professionals. Many think that banks and NBFCs do not offer personal loan to self employed, but it’s not true. If you are a self employed person and have all the required documents with you along with a strong CIBIL score, you can easily get a personal loan. The interest rate may defer from the one they give to salaried employee. But it depends on the bank and NBFC’s policy.
Features And Benefits Of Personal Loan For Self Employed:
- They have easy availability
- They need minimum documentation
- You get expeditious loan approval
- You can consolidate your debts
- You can take multi-purpose loan
- You don’t have to offer any collateral
- It offer you adjustable sum of loan
- You’re rewarded with flexible payback option
- Varied interest rate
Challenges Faced By Self Employed People While Getting A Personal Loan:
- Banks and NBFCs offer a higher interest rate for self employed compared to salaried professionals.
- You need to have a very strong CIBIL code.
- As you do not draw regular salary, banks are often concerned about the fact that how will you pay fixed monthly installment.
- Extremely unstable monthly income can be a backdrop.
- They need to have a specific set of documents, for which banks do not bend their rules.
- Compared to banks, NBFCs offer more personal loans for self employed, but with higher interest rates.
Eligibility Criteria To Get A Personal Loan For Self Employed:
| Particulars | Self-Employed Borrowers |
| Age | 23 years to 60 years |
| Income | Turnover of minimum Rs. 24,00,000 (differs for professional and non-professional) |
| Minimum Loan Amount Approved | Rs. 75,000 to Rs. 3,00,000 |
| Maximum Loan Amount Approved | Rs. 15,00,000 to 20,00,000 |
| Loan Tenure | 12-48 months |
*The eligibility criteria differ from bank to bank. The above details are generic, not specific.
Documents Required Getting A Personal Loan For Self Employed:
| Particulars | Self-Employed Borrowers |
| Identity Proof | Passport, Driving License, Voters ID or PAN Card |
| Address Proof | Passport or utility bills |
| Bank Statement | Last 6 months |
| Proof of highest professional degree | |
| Additional Documents | Latest Income Tax Return Balance sheet |
| Profit and Loss for last 3 years certified by CA |
*The list of documents differs from bank to bank. The above given list is generic, not specific.
Now that you know what you need to get a personal loan, why don’t you apply for a personal loan here!
