It is a myth that only a salaried professional can avail a personal loan. A personal loan for self- employed is also offered to meet both personal and business needs including purchasing new equipment/machinery, home renovation, increasing working capital, paying medical bills, going on a vacation, etc. A personal loan of up to Rs. 40 lakh can be availed by self- employed individuals both online and offline without pledging any collateral.
Personal Loan for Self-Employed - Features & Benefits
- Loan amount: An instant cash loan for self- employed can be availed as high as Rs. 40 lakh from various banks and NBFCs
- Flexible tenure: All the banks and NBFCs offering a personal loan for self- employed individuals allows them to choose the tenure of his loan. The tenure usually ranges from 12 to 60 months and can be decided as per an individual’s repayment ability
- Attractive interest rate: Starting from as low as 10.99%, the interest rates offered on an instant personal loan for self- employed individuals ensure affordable and convenient repayment. The interest rates may vary depending upon an individual’s age, credit score, loan amount, repayment history, etc.
- Easy to apply: A personal loan can be easily applied online from the comfort of your home or office and saves a lot of time and effort
- Quick approval and disbursal: When a self- employed individual applies for a personal loan online he gets an instant approval if he meets the eligibility criteria and submit the necessary documents. Also, the loan amount gets disbursed to the account within 3 to 5 working days
- Minimum documentation: To process the personal loan application instantly, the banks and NBFCs ask a self- employed individual to submit minimum documents
Eligibility Criteria: Personal Loan for Self Employed
- You should be at least 21 years old
- Your maximum age should be 68 years
- Your minimum annual income should meet the income criteria set by the bank
- You current business should be in existence for at least 3 years
- Your credit score should be at least 750 or above
Documents Required: Personal Loan for Self-Employed
- Identity Proof: PAN card, Aadhaar Card, Passport, Voter ID Card, etc.
- Address Proof: Ration Card, utility bills, rental agreement, bank passbook or statement, driving license
- Bank account statement of at least 6 months
- Income tax returns of minimum 3 years
How a Self-Employed Can Apply for an Instant Personal Loan Online?
If you are a self- employed individual/professional, you can apply for an instant personal loan through Paisabazaar.com, which is India’s number 1 financial platform. Follow the process to get a personal loan without any hassle:
- Click here and fill a form
- Get offers from various banks according to the chances of approval
- Either select a bank or call Paisabazaar for assistance
- Fill a form to process your loan application
- Upload documents/schedule document pickup
- Bank’s executive will call for verification
- Approval and disbursal
Top 5 Banks/NBFCs Offering Personal Loans to Self-Employed
|Particulars||Yes Bank||IndusInd Bank||ICICI Bank||Fullerton India||Bajaj Finserv|
|Interest Rate||Starts from 10.75%||Starts from 10.75%||11.50% to 19.25%||12.99% – 36%||Starts from 12.99%|
|Tenure||12 to 60 months||12 to 60 months||12 to 60 months||12 to 60 months||12 to 60 months|
|Loan amount||Upto Rs. 40 lakh||Upto Rs. 10 lakh||Upto Rs. 20 lakh||Rs. 10 lakh||Upto Rs. 25 lakh|
|Processing Fee||Up to 2.50% of the loan amount plus GST||Up to 2.50% of the loan amount plus GST||Up to 2.25% of the loan amount plus GST||Up to 3% of the loan amount plus GST||Up to 3.99% of the loan amount plus GST|
|Apply Now||Apply Now||Apply Now||Apply Now||Apply Now|
Do I need to pledge a collateral to apply for a personal loan for self-employed?
No, a personal loan is an unsecured loan and hence you don’t need to pledge collateral.
I have never filed an ITR. Can I apply for a personal loan?
ITR works as an income proof for a self- employed individual. If you have not filed an ITR, you might not get a personal loan from any leading bank. However, you can try contacting a NBFC that might offer you a loan without asking for income proof.
I was working with an MNC 8 months ago and have just started my own business. Can I avail an instant personal loan for self- employed?
Mostly all the lenders prefer giving a personal loan to those self- employed individuals whose businesses are running from at least 3 years. However, a few NBFCs may offer a personal loan even if your business is completely new or you can consider taking a business loan for your start-up.
What happens if I miss an EMI?
If you miss an EMI, you would not only have to pay a late payment fee but your credit score will also be negatively impacted.
Is it possible to prepay/foreclose my personal loan?
Yes, you can prepay/foreclose your personal loan by paying additional foreclosure charges that may vary from lender to lender. Most of the banks have a lock- in period of 6- 12 months that is you can only foreclose the loan after paying 6- 12 EMIs.
Do I have to pay a processing fee to process my loan application?
Yes, all the lenders ask for a processing fee that usually starts from 1% of the loan amount plus GST. The processing fee is non- refundable and varies from lender to lender.
How can I apply for a personal loan for self- employed offline?
To apply for a personal loan for self- employed offline, you can either visit the nearest branch of the lender or you can call the customer care.
How do I get the lowest interest rate on a personal loan?
The best way to have the lowest interest rate on a personal loan is to have a healthy credit score. If your credit score is 750 or above and your repayment history is good, you may get the lowest interest rate from your lender.
Can I use a personal loan for self- employed for business purpose?
Yes, you can use a personal loan for both personal as well as business purpose. There is no restriction on the end- use of a personal loan for self- employed and hence you can fund various expenses including home renovation, purchasing equipment/gadgets, vacation, wedding, etc.
When will my loan get disbursed?
Once your loan is approved, the amount gets disbursed to your account within 3 to 5 working days.