Personal Loan Eligibility For Self Employed

At some point in life, you may face a financial crisis when fulfilling life’s goals such as marriage, funding a child’s education, going on a vacation or buying a luxury gadget. It may become even more complicated if an individual is self-employed as there is no guaranteed income. In such situations, accomplishing some of life’s goals can be challenging. But you can do away with your financial worries and still achieve the goals by applying for a personal loan.

A personal loan is an unsecured type of loan. You can easily apply for the loan and get it approved by the preferred bank in minutes. As compared to other loans, personal loan for self-employed offers the flexibility to choose the tenure as per your convenience. Let’s look at some of the features of the loan:

• Minimum documentation
• Quick approval and disbursement in minutes
• Fixed Interest rates and it remains the same throughout the tenure
• Choose loan tenure that ranges from 12 months to 60 months
• Flexible EMI option
• No need to provide any collateral or security

Yes, you can apply for a personal loan. You can avail a maximum loan amount of Rs. 30 to Rs 50 lakhs depending upon your lender. Eligibility Criteria for Self-employed people

• KYC documents (Identity Proof and Address Proof)
• As compared to salaried individuals, self-employed people have to go through a rigorous documentation process when applying for a personal loan. This is because independent people do not have fixed income earnings. If you want to apply for the loan, below is the eligibility criteria:

1. Minimum age should be above 23 years and the maximum age to apply for the loan is 65 years
2. Due to the uncertain income generation of self-employed people, you will have to give proof of your current business and evidence of your regular tax payments. You should have been running the company for three years
3. You should have a registered office in your name or the name of your business. If there is no registered office, then you can submit your registration papers

Personal loan interest rate ranges between 16% to 26%. Some of the factors that decide your interest rate include age, loan amount, your income, employment status, credit score, loan tenure, repayment capacity, etc. If you have a good credit history, getting a personal loan approved is not that difficult.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.