If you are a self-employed you might be wondering whether you can get a Personal Loan.
Yes, you can get an instant personal loan for self employed. Self -employed individuals are those who own a business either as a sole proprietor or professional. As a business owner, you need funds immediately, with minimal documentation, processing time, and quick disbursal. Instant personal loans for self-employed, serve as an excellent option to meet their immediate financial needs.
Best Way To Arrange Funds In An Emergency!
When it comes to providing loans, banks have strict regulations, whereas NBFCs are more flexible but charge a higher interest rate than banks. Additionally, individuals with low credit scores may be able to obtain loans from NBFCs and other private lenders with higher interest rates.
Although choosing where to get a loan is up to the individual, it is safer and better to work with a company that has a good system and infrastructure.
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What Is The Eligibility For A Personal Loan For Self-Employed?
In order to qualify for an instant personal loan for self employed, the bank may set a minimum income requirement that varies depending on the applicant’s location. You can easily obtain a personal loan if you are self-employed if you have financial records that demonstrate your revenue stability.
The bank could also demand a particular length of time in business from self-employed people. The eligibility criteria will differ from lender to lender. Following are some general eligibility criteria:
Age Requirement: At least 25 years of age and maximum 65 years of age.
Minimum Turnover: Rs. 15 lakhs for professionals and Rs.40 lakhs for non-professionals.
Minimum Profit After Tax: Rs. 2 lakhs for Proprietorship Firm/Self-employed Individuals and Rs. 1 lac for non-professionals.
Stability: At least 2 years in current business.
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Documents Required To Apply For An Instant Personal Loan For Self Employed
You will require additional documents in addition to the usual ones, like evidence of identification and address, to demonstrate the continuity of your business and consistent income.
These records may include tax returns, audited financial statements, most recent bank statements, and office lease agreements. Depending on the profession you perform and your organisational structure, you might need additional documentation.
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What Is The Interest Rate Of Instant Personal Loan For Self Employed?
Many banks give a personal loan for self-employed of up to Rs.20 Lakhs with a fixed rate of interest between 10.99% – 17.99%. The tenure of the loan is between 1 to 5 years.
Here are a few banks and NBFCs that provide loan to self employed individuals.
Banks/Lenders Interest Rate (p.a.) Loan amount Loan Tenure
Yes Bank 10.99% p.a. onwards Rs.1 lakh – Rs.40 lakh 1 year – 5 years
Kotak Mahindra Bank 10.25% onwards Up to Rs.20 lakh 1 year – 5 years
ICICI Bank 10.99% -17.99% p.a. Up to Rs.20 lakh 12 to 60 months
IndusInd Bank 11.00% p.a. onwards Rs.50,000 to Rs.15,00,000 1 year to 5 years
Fullerton India 11.99% p.a. onwards Up to Rs.25 lakh Up to 60 months
Citibank 14.99%-17.99% Rs 1 lakh to Rs.30 lakhs 12 to 60 months
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FAQs on Instant Personal Loan for Self Employed
Self-employed personal loans do not require collateral because they are referred to as unsecured loans. However, before approving the loan, lenders will examine your ITRs, financial documents, and other income-related documents.
A personal loan for self-employed can be extended for up to 60 months, with a minimum term of 12 months. The terms of employment can vary from institution to institution.
A credit score of 700 or higher typically facilitates loan approval. If you have a low credit score, you may have your loan application rejected or the interest rate on the loan increased.
Yes, for early withdrawal, some institutions charge a percentage of the loan amount.
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Finance at the right time can help you with emergency fund requirements. Due to the uncertain nature of their income, self-employed individuals may sometimes have difficulty getting a loan. However, at Money Club you can get instant money that can be used for various purposes.
The Money Club offers a safe and secure mobile platform for P2P chit fund-based savings. Its community banking app aims to make saving, investing, and borrowing money more efficient. The Chit Funds Act, 1982 governs and regulates chit funds in India. It is a detailed act that covers all aspects of chit funds for the protection of both investors and the company. Furthermore, because it is a highly liquid instrument, it is a useful tool for raising funds in times of emergency. When you invest in chits, you earn a higher return than other financial intermediaries, and when you borrow, you pay less interest. It is very user-friendly, providing the most affordable interest rates.
Money Club is not only a platform to provide you a systematic saving scheme, but we make sure that you have an easy access to your savings and the flexibility to borrow much larger sums, when you need it the most. We are the only online chit fund platform available on a mobile app, 100% secure and backed with AI technology. Be smart; avoid the pitfalls of borrowing at exorbitant costs from money lenders and other financial channels. Borrow with lesser hassles from Money Club.
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How to join The Money Club
- Download the Money Club app from Google Play Store
- Get screened
- Once you get screened, our match-making algorithm will invite you to a club with other verified members.
- Pool up money with verified members and bid for the pooled amount whenever you need a lumpsum amount.
Read: How Does The Money Club Mobile App Work? – The Money Club
Know Your Money Club platform Journey On The Money Club App
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