Instant loan for self employed: All you need to know before borrowing via instant loan apps

If you are self-employed in India, getting a personal loan from a bank can be difficult. Freelancers, shop owners, consultants and gig workers often find it tough to get loans because their income is irregular and there is too much paperwork. Thankfully, instant loan apps are making it easier. These apps give you quick access to money with very little paperwork, all from your phone. They make borrowing fast, easy and less stressful.

What are instant loans?

Instant loans are short-term personal loans that get approved and paid quickly, sometimes in just a few minutes or hours. Unlike bank loans, they need very little paperwork and have a fast approval process. You can apply through loan apps or online platforms, making the whole process digital. Usually, you just need basic documents like your PAN card, Aadhaar card, bank statement and sometimes proof of income.

How instant loans differ from traditional bank loans

• Quick approval: While banks may take days or even weeks, some apps process loans in less than 10 minutes.


• Minimal documentation: No need to submit a stack of papers or visit a branch multiple times.


• No collateral: These are unsecured loans, unlike many bank loans that require you to pledge assets.


• Flexible usage: You can use the money for anything,from paying bills to handling emergencies or investing in your small business.

Top instant loan apps

Here are some instant loan apps for self-employed individuals:

• Buddy Loan - lets self-employed people borrow from Rs 1,000 up to Rs 15 lakhs with interest starting at 11.99% per year. Repayment can be done over 6 months to 5 years. To apply, you need to earn at least Rs 15,000 a month and be between 18 and 60 years old.


• PaySense - gives personal loans up to Rs 5 lakh with interest from 1.4% to 2.3% per month. You can repay in 3 to 60 months. To apply, you need to earn at least Rs 15,000 a month and be between 21 and 60 years old.


• MoneyTap - offers a credit line from Rs 3,000 to Rs 5 lakh with interest starting at 1.08% per month. You can repay in 2 to 36 months. It is for self-employed people aged 23 to 55.


• Money View -  gives loans from Rs 5,000 to Rs 5 lakh with interest starting at 1.33% per month. Repayment can be up to 5 years. To apply, you need to earn at least Rs 15,000 a month and be between 21 and 57 years old.


• KreditBee -  offers quick loans from Rs 1,000 to Rs 5 lakhs with interest rates between 16% and 29.95% per year. You can repay over 3 to 24 months.

If you need bigger loan amounts, Moneycontrol, in partnership with eight lenders, offers personal loans up to Rs 50 lakhs. The process is quick and paperless. Depending on your profile, interest rates can start as low as 10.5% per annum.

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How to choose the right instant loan app?

1. Check loan amount and eligibility: Look at how much money you can borrow and make sure you meet the app’s rules, like your age and income.


2. Look at interest rates and fees: See how much interest the app charges and if there are any extra fees. Lower interest and fewer fees mean you pay less in the end.


3. Consider repayment time: Choose an app that lets you repay the loan in a time that works for you. Some let you pay back in a few months, others give you years.


4. Speedy disbursal: One big advantage of instant loans is speed. Pick an app that approves and sends the money quickly.


5. Make sure the terms are clear: Avoid apps that hide important details. You want to know the exact interest rates, fees, and repayment rules before you borrow.

Benefits of using instant loan apps

• Speed: Loans can be approved and disbursed within minutes to hours.


• Convenience: Everything is online, so you can apply from home or anywhere.


• Less paperwork: Only basic documents are needed.


• Unsecured: No need to pledge assets.


• Flexible repayment: Many apps let you choose how long to repay.

To conclude, instant loan apps make borrowing easy for self-employed people in India. Whether you need a small or big loan, these apps offer fast and paperless loans. Before applying, check rates, repayment options, and reviews to find the best app for you. Moneycontrol, partnering with eight lenders, offers loans up to Rs 50 lakhs with interest rates starting at 10.5% per year.