07 January, 2025 | 12:42 IST
A personal loan can come in handy when you are short of cash or need funds immediately. You can use the personal loan amount for big-ticket expenses, medical emergencies, travel plans or to pay off a high interest debt.
A personal loan can be disbursed quickly if you meet all the eligibility criteria of a bank or a non-banking financial company (NBFC). The lenders generally look for a healthy credit history and a stable income of the borrower before approving a personal loan. Salaried individuals are often given priority by lenders due to their steady income.
This often raises questions for self-employed individuals, who may not have a specific source of income or a fixed earning every month. The fluctuation in their monthly earnings makes the lenders more cautious while approving personal loan applications for self employed borrowers.
The banks and NBFCs typically assess an applicant’s income over a certain period, generally 3 to 6 months, and credit score before giving a go ahead to a loan application. In such a scenario, the personal loan for self employed individuals can be availed easily with a few simple measures.
The eligibility criteria for self employed borrowers to get a personal loan may differ from bank to bank and a few additional documents could be required.
Let’s take a look at all the important factors self employed individuals should take into account before applying for a personal loan.
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Different banks may need different documents to approve personal loans for self employed individuals. In general, you have to submit documents including an identity and address proof like your Aadhaar, voter ID and PAN, among others. Most of the lenders also require bank statements and income proof of the last three months.
The document requirements might change depending on your relationship with the bank or the NBFC.
The eligibility criteria for self employed borrowers to get a personal loan may differ compared to salaried individuals. These conditions could also vary from lender to lender. However, mostly the lenders look for the eligible age bracket (generally 21 to 60 years), a high credit score and a robust income before approving a personal loan application.
You can check the eligibility criteria and apply for personal loans up to Rs 15 lakhs through the Moneycontrol app and website. Moneycontrol offers personal loans through seven of its lending partners. You just have to enter your details, complete KYC and set up EMI repayment. Depending on your employment status, you can choose a personal loan with interest rates starting at just 12% per annum.
While it is not as easy for self-employed people to get personal loans as compared to a salaried person, they can increase their chances of getting it by following these simple tricks and tips.
ALSO READ: Personal Loan: Easy tips to get a good personal loan interest rate
You can apply for a personal loan using the bank’s app or website. Alternatively you can also explore multiple personal loan offers through the Moneycontrol app and website. In a 100% paperless process, Moneycontrol provides personal loans from sevenlenders. You can apply for a personal loan up to Rs 15 lakhs with interest rates starting at only 12% per annum.
However, before applying, you must check the interest rates, processing fee and other charges to avoid any financial stress in future.
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