How to avail a personal loan for self employed

personal loan for self employed

Self employed are those who are individuals and earn their income by running their own business, they do not depend on salary. Personal loans are a collateral-free mode of funding which helps self-employed individuals to meet their personal or business short – term requirements.

A personal loan for self employed comes with several benefits and features that can help you meet various particular goals such as home renovation, medical emergency, wedding and many more. As a general guide, if you are self-employed you can easily borrow a maximum equivalent up to 5times according to your annual turnover.

Documents required for a personal loan for self employed,

  • Passport size photo.
  • PAN, Adhar card, Driving license, Voter ID, passport etc.
  • Address Proof
  • Income tax returns filed for the previous year.
  • Proof of business existence.
  • Proof of age- Birth certificate, passport
  • VAT Returns and GST number.
  • The duly signed application form.
  • Bank account statement of your current account of the last 3 months.

Personal loan documents for self-employed differ from each other. It is a smooth loan journey for borrowers, before offering a loan lender has to check all documents. The documents required are business details, income proof, KYC proof, and anything more. These loans can be used for multiple financial objectives or you can also invest in your business by plant and machinery, expanding new locations, purchasing equipment etc.

It is a high-interest loan product as compared to others. A self employed personal loan is specially designed to complete the needs of self employed customers. Though, the amount may differ depending on your company’s scheme and the personal profile at the time of loan application.

Benefits

  1. No collateral is required: It is an unsecured loan and easy to get it.
  2. Flexibility: It enables you to withdraw funds according to your requirements and repay the amount when you gain access to extra funds. The repayment tenure typically ranges from 12months to 60months it can be based on their affordability and annual earnings.
  3. Minimal Documentation: The loan is typically passed with minimal documentation. The process is quick and approval is provided instantly by most lenders.
  4. Easy to apply online: Applicants can easily apply for a personal loan online service, which is quick, requires basic documentation and easy to understand.
  5. Competitive interest rates: The rates ensure that your financial burden is not too high.

 

For taking a loan, it requires eligibility differs from bank to bank. The minimum age of the applicant should be 24years and maximum age at the time of loan maturity should be  65years. Personal loan is a great option if there is an urgent need or a short period. Borrowers should have work experience and in current business at least 3years. The lenders approve the loan while checking the customers existing liabilities, income, age etc.

 Tips to apply personal loan for self employed

There are some different process through which you can fill the application are:

  • Branch visit: In the branch, submit all required documents to get the loan.
  • Over the phone: To get the loan, always get in touch with customer care.
  • Online Application: Here, with login ID and credentials, you can also apply through internet banking. Apart from this, you simply visit the website of the bank and providing your personal information can easily apply for the loan.

However, when it comes to self employed banks have to rely on the audited financial statement and income tax returns of business on their own. If there is a pre- approved customers, the loan amount will be disbursed directly to your account within seconds. In some banks, there are options of personal loan balance transfer and top-up loans to self-employed individuals.

 5 easy steps to get a personal loan

  1. Application form: Fill the application form online or in any other ways.
  2. Upload documents: Credit cards/ Banks statement.
  3. Final EMI: Select final EMI plan, from a range of tenure.
  4. Verification Conducted: Upload KYC, documents for verification.
  5. Money disbursed: At the last, the amount transferred to your account.

Conclusion

Overall, personal loans make life trouble- free. A little more money can be very helpful to understand your goal. The loan has various functions and you can use these funds for your personal purpose. Generally, personal loan is of only one kind and it can be availed for any type of necessity.

AUTHOR: reema
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