Personal Loan for Self Employed

Table of Contents

A personal loan is an unsecured loan that is offered not only to salaried professionals but also to self- employed individuals. A common requirement when applying for a personal loan is proof of steady income. This could be a challenge if you’re self-employed, especially if your income is irregular or difficult to prove.

A little more money can be a lot more helpful to realise your dreams with a smile. With ample funds, you can be sure to make the most of a well-deserved luxury holiday, or fulfil a temporary but pressing financial need.

Documents required for Self-Employed

  1. Identity & Age Proof
  2. Completely filled personal loan application with photograph
  3. PAN Card
  4. Residence proof – Passport driving license, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
  5. Bank statements for the last 3 months (preferably your salary account)
  6. Salary Slips of last 3 months
  7. Last 3 years Income Tax Returns with the computation of income
  8. Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Eligibility Criteria for Personal Loans for Self-Employed

1. Credit Score: As a self – employed individual your income will not be regular. So the bank gives you a credit score and based on that you will be eligible for a personal loan. The credit score depends on the repayment behavior of yours.

2. Monthly Income: To be eligible to apply for a personal loan, you need to have a minimum monthly income and Banks have different minimum income expectations.

3. Business Stability: Bank considers this as an important checkpoint for approving the personal loan application of a self-employed. There should be a stable business income graph for the bank to have assurance.

4. Age: You need to be at least 21 years old. Age criteria depend on the Bank as it may vary.

Features and Benefits of Personal Loan for Self-Employed

  • Easy Application Process: A self- employed individual can apply for a personal loan online either on the lender’s official website. The application process is easy to understand and can be completed from the comfort of your home or office
  • Loan Amount: Starting from as low as Rs. 50,000, personal loan for self- employed goes upto Rs. 40 lakh and can help an individual to deal with various financial situations
  • Minimum Documents: A self- employed individual can avail a personal loan online just by uploading a few basic documents including ID, Address and Income Proof. This saves you from the inconvenience of carrying piles of documents to the bank
  • Flexible Tenure: All the personal loan lenders allow the self- employed individuals to choose the tenure of their loan as per their repayment ability. The tenure usually ranges from 12 to 60 months
  • Quick Disbursal: Once a personal loan for self- employed is approved, it gets disbursed to your bank account within 3 to 5 working days

Factors decides the approval of a Personal Loan for Self-Employed

Income Tax Returns

Lenders are very strict regarding your income tax returns (ITR) since they provide an overview of your financial health. Many lenders typically require ITRs of the last three years when you apply for personal loan. As such, not filing your ITR on time can spell trouble since a personal loan for self-employed without ITR is impossible to come by.

Credit Score

Lenders need to know that you can repay the loan timely. Since personal finance is primarily unsecured, lenders don’t have the collateral security. So, one factor which plays a significant role in determining eligibility is your credit score. Other than eligibility, your credit score will also help lenders determine the loan amount, personal loan interest rate, and tenure you qualify for. As a rule of thumb, maintaining a credit score of 750 or higher will lead to hassle-free approvals, and in some cases, even lower interest rates.

 Documents to prove your Income

The only difference for a self-employed individual from a salaried individual is the flow of income. Therefore, the lenders would want to know that your business is stable and you can repay the loan within the stipulated time period. For this, you would be required to give the relevant documents that prove the same.

Top picks for the Best Personal Loans for Self Employed

1. Yes Bank Personal Loan for Self-Employed

Yes Bank offers unsecured personal loans up to Rs.40 lakh at attractive interest rates in just 60 seconds. Yes Bank personal loan approval in 60 seconds even personal loan top-up options as well as transfer of existing loans.

2. Omozing.com

Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . Personal Loan Interest Rates starting from 0.8% p.m, and Loan amount ranging from INR 10,000 to INR 15,00,000. The Minimum and maximum repayment period ranges from 1 month to 48 months.  CIBIL 600+ all company categories (including LLP, Self Employed, Proprietorship)

3. IndusInd Bank

Self-employed professionals like doctors, chartered accountants, engineers, company secretaries, MBA consultants, and architects and self-employed individuals like directors, sole proprietors, and partners can apply for this loan, provided they are above the age of 25 years. The lender has simplified the personal loan application process, with applicants having to submit minimum documentation when applying for a loan from IndusInd Bank.

4. SBI Personal Loans

SBI Personal Loan is the most popular personal loan in India given its low interest rates, quick approval, and online process. Personal Loans by SBI are available for salaried working with government, private sector, MNCs and self-employed professionals such as doctors within the age group of 21 to 58 years.

5. Axis Bank Personal Loan

Axis Bank Personal Loan is the most popular personal loan in India given its low interest rates, quick approval, and online process. Axis Bank Personal Loan interest rate starts from 10.49%. The processing fee charged on Axis Bank personal loan is Rs.4, 999. Axis Bank also offers pre-approved personal loans at low rates for customers with strong credit history and those with an existing account with the bank.

6. ICICI Bank Personal Loan

ICICI Bank Personal Loan is the most popular personal loan in India given its low interest rates, quick approval, and online process. ICICI Bank Personal Loan interest rate starts from 10.50%. The processing fee charged on ICICI personal loan is Upto 2.25% of Loan Amount. ICICI also offers pre-approved personal loans at low rates for customers with strong credit history and those with an existing account with the bank.

7. Fullerton India Personal Loans

Fullerton India Personal Loan is the most popular personal loan in India given its low interest rates, quick approval, and online process. Fullerton India Personal Loan interest rate starts from 11.99%. The processing fee charged on Fullerton personal loan is 2%. Fullerton also offers pre-approved personal loans at low rates for customers with strong credit history and those with an existing account with the bank.

8. Bank of Baroda Personal Loans

Bank of Baroda Personal Loan is the most popular personal loan in India given its low interest rates, quick approval, and online process. Bank of Baroda Personal Loan interest rate starts from 10.50%. Bank of Baroda also offers pre-approved personal loans at low rates for customers with strong credit history and those with an existing account with the bank. The processing fee charged on Bank of Baroda personal loan is 2%, Min Rs. 250.

9. Union Bank of India Personal Loans

Union Bank of India Personal Loan interest rate starts from 8.90%. Union Bank of India Personal Loan is the most popular personal loan in India given its low interest rates, quick approval, and online process. The processing fee charged on Union Bank personal loan is 0.5%, Min Rs. 500. Union Bank also offers pre-approved personal loans at low rates for customers with strong credit history and those with an existing account with the bank.

10. Karur Vysya Bank Personal Loans

Karur Vysya Bank Personal Loan is the most popular personal loan in India given its low interest rates, quick approval, and online process. Karur Vysya Bank Personal Loan interest rate starts from 9.40%.The processing fee charged on Karur Vysya personal loan is 0.40%.