The personal loan is one of the most popular loan products which is offered by almost all the banks and NBFC. The personal loan can be used for any reason ranging from child’s education, marriage expense, traveling, emergency etc. You can avail the personal loan for self- employed as well. The personal loan is one of the loan product which has made the dreams and wishes of the people come true. The personal loans is both the unsecured and secured type of loan. The unsecured personal loan does not require any collateral or security. It can be availed by anyone. The personal loan is one of the ways when you require the fund to fulfill your need and requirements. The maximum tenure of the loan repayment is 5 years.
The self – employed are the people who have their own business and are sole proprietor of their business. The personal loan is given to all the individual but some banks do not offer the personal loan to the self- employed. The bank refrains from offering the personal loan to the self- employed as it is an unsecured loan and with no guarantee of the steady flow of income makes it risky for the lenders to avail the loan amount. The personal loan generally charges the high rate of interest than other loan products.
The personal loan is given easily by the NBFC to the self- employed. There can be the difference between the interest rate given to the salaried individual and the self- employed. If you have good credit score then you can easily get the personal loan. But if your credit score is bad then availing of the personal loan can be difficult. In such case, you can opt for the secured personal loan. As the bank have the required collateral and the credit score do not matter if they have the security to bank on.
Eligibility required for personal loan by self- employed-
The eligibility criteria set up by the lender are one of the important aspects to avail the loan. The lender checks this criteria and if you fufill the criteria then you are eligible to avail the loan. The loan amount and tenure of the loan repayment is also depended on this information. The eligibility criteria required by the lender are mentioned below-
- The applicant must be the Resident of India.
- The minimum age required at the time of application is 21 years and the maximum at the time of loan maturity should be 65 years.
- You should be in the current business for at least 3 years.
- You should have required turnover or profit that is required by the lender.
The documents required by the applicant at the time of application should be complete, legal and valid. Given below is the list of documents required at the time of applying for the personal loan.
- Passport size photograph.
- The duly signed application form.
- 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.
Features and benefits of the Personal loan-
- The features and benefits of the personal loan for the self- employed are mentioned below
- Quick disbursal
- Minimal documentation
- Competitive interest rate
- Flexible loan tenure
- Few banks do not charge the processing charge
- The loan amount can be used for any personal need or requirements.
- No collateral for the unsecured loan.
The personal loan is the financial solution when you need the funds quickly & urgently.Though there are many benefits of availing the loan amount but there are certain disadvantages attached to it as well. The personal loan interest rate offered is relatively higher than other loan products. If you have bad credit score then the chances of availing the personal loan are less. Also, you can not have the option of part payment. You are required to have a mandatory bank account. The applicant will be charged extra for the late payment.
The personal loan can be taken for any purpose but you should not forget that it is the loan and you have to pay back. So, make sure that if you are availing the personal loan then you are catering to the urgent requirement of the funds otherwise if you are availing for the investment purpose or so then it can backfire you. As the interest rate charged can be more than you are gaining in the investment. Thus, be sure you have a good reason to avail the loan. You should shop online to know the interest rate offered by the different lender to see the one which offers you the maximum benefits. You should be careful and choose the lender which can give the optimum benefits.