Are you self-employed and wondering whether you can take a personal loan or not? Well, of course, you can. Yes, there are many banks and NBFCs which offer personal loan to self-employed online in order to fulfill their varied needs. With a maximum loan amount of up to Rs.40 lakh being given for a tenure of up to 5 years, personal loan for self-employed is available at the attractive interest rates. A self-employed individual needs to have a good cibil score of above 750 out of 900 along with an annual income of Rs.2 lakh to enjoy a smooth journey. However, there are various other factors like business stability, nature of the business, income tax returns and annual turnover are considered by the lenders before giving personal loan approval. Thus, know your eligibility and keep your documents ready before applying personal loan for self-employed as it will help improve your personal loan credibility.   

Personal Loan Eligibility for Self Employed

The eligibility required differs from bank to bank and the given below is the general eligibility criteria that are required for the sanction of the personal loan:

  • The applicant should be the Resident of India.
  • The applicant should have the minimum age of 24 years at the time of application, the maximum age should be 65 years at the time of loan maturity.
  • The minimum turnover or profit of the applicant should be as per the lender’s requirements.
  • The minimum work experience in the current business for at least 2 or 3 years.
  • The minimum annual turnover should be Rs.1 lakh or Rs.2 lakh

Documents Required for Personal Loan Self Employed

  • The duly signed application form.
  • Passport size photograph.
  • Proof of ID – Passport/ Voter ID/ PAN Card
  • Proof of age – Birth certificate/ passport
  • Proof of residence – Passport/ Utility bill/ Allotment letter.
  • Proof of income – Latest Income tax return (ITR) along with computation of income, Last 2 years Balance sheet and profit and loss certified by a CA.
  • Proof of Signature verification- Passport/ PAN Card.
  • Bank statement – Last 3 months bank statement/ last 6 months bank passbook.

How to Apply Online Personal Loan for Self Employed

Apply online with Quikkloan for self-employed personal loan and expect instant approval and quick disbursal. Yes, the online process at Quikkloan is really simple and quick hence helps you with a hassle-free journey. This digital lender with its best of services such as credit assessment ensures that you meet the right lender in the least time. The process starts by receiving your loan application, checking the eligibility, document submission, credit assessment hence instant approval and disbursal of loan amount. At Quikkloan, your personal loan approval chances will improve as loan application will reach out to the right lender. Thus, your personal loan credibility also improves here. 

Why Cibil Score is Important Personal Loan for Self Employed

A personal loan is an unsecured credit which means the lender doesn’t ask for security or collateral at the time of approval. Thus, in return, a good cibil score is something on which they always pay attention. In case of a personal loan for self-employed, a score of above 750 out of 900 is considered to be fair enough in grabbing the best deal. Talking about a good credit score, it shows the creditworthiness of a borrower. It is a reflection of a good credit history, which means a borrower can be trusted for future borrowings. Thus, with minimum risk involved, it would be easy for a lender to provide personal loan to such applicants with lots of perks such as lower interest rate, minimal processing fee, less documentation, instant approval and disbursal. 

Factors to be Considered for Personal loan Self Employed Approval

A self-employed individual must consider the following critical factors for approval of a personal loan.

Existence of Business

The vintage of your business determines your creditworthiness. If your business has been in existence for a minimum of 3 years will mean that you can be trusted to repay the loan within the tenure.

Stability of Business

The bank may ask for bank statements and documents to establish the sustainability of your business running for at least the past 3 years. Stability in business shows, a borrower will also job the stability in future borrowing hence will repay the loan without any default. 

Income Tax Returns

You would be required to provide income tax returns of at least the last 3 years. The returns need to be filed in your own name and income made from the business. 

Don’t think that if you run a private limited company or LLP then the returns will be evaluated in the name of your running business.

Your Income

The annual revenue or turnover is a crucial factor that lenders take into consideration before personal loan approval. A regular flow of income is an indication that a borrower will repay the loan without any delay. And, if the income is higher, it would be a double benefit in improving credibility. Different lenders have different criteria for a minimum income. Thus, do check the same before applying personal loan for self-employed.   

Nature of Business

The nature of the business is of huge importance while applying for personal loans. This can be a make or break factor for a personal loan. The nature or kind of your business will decide the sustainability and reliability of the business to help you repay the loan. Volatile or seasonal businesses can fail to imbue confidence for personal loan providers. The banks or NBFCs must be able to see that you will be able to pay the EMIs.

Features and Benefits Personal loan for Self Employed

  • Competitive interest rates
  • No collateral
  • Transparency
  • Quick processing of the loan
  • Easy EMIs
  • Flexible tenure periods
  • The loan amount depends on the repayment capacity of the individual
  • The loan amount can be used for any personal expenditures

Bajaj Finance Personal Loan for Self Employed

Avail personal loan from Bajaj Finance at a competitive interest rate. The lender offers the loan for a maximum tenure of up to 5 years with a loan amount of up to Rs.30 lakh. You can easily apply online and get the required loan amount to meet your multiple needs. The lender gives instant approval and the fastest disbursal, soon after meeting the criteria eligibility criteria. 

Frequently Asked Questions (FAQs)

Q.How can I apply for a Personal Loan for self-employed?

  1. You can apply online for a personal loan and expect instant approval and disbursal. 

Q.What is the eligibility for a Personal Loan for self-employed? 

A.The eligibility criteria varies from bank to bank. Thus, it would be advisable to check the same before applying. However, for your reference, few eligibility norms are:

  • The minimum age of 24 years at the time of application
  • The maximum age should be 65 years at the time of loan maturity
  • The minimum turnover or profit of the applicant should be as per lender’s requirements.
  • The minimum work experience in the current business for at least 2 or 3 years.
  • The minimum annual turnover should be Rs.1lakh or Rs.2 lakh

Q.How soon can I receive funds from a Personal Loan? 

A.The actual disbursement time differs from lender to lender. Usually, lenders would give the loan within 3-5 working days if everything is in order. 

Q.Do I need to provide security or collateral? 

A.No, personal loans for self-employed are collateral-free which means a borrower doesn’t need to give any security to the lender.