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John works in a mobile company and wants to open his own mobile showroom. However, he knows he can only move forward with his plan with funds. So he starts looking for options and finally decides on personal loans, which have beautifully changed his life.
Are you too self-employed and have hidden desires? Now is the time to change your life like John did. Continue reading and discover your financing solutions today. This post will walk you through the insights about loans for self-employed people and the perks attached to them. So, let’s quickly delve in!!!
Eligibility Criteria for Personal Loan for Self-Employed People
To qualify for this loan, you must meet the eligibility criteria –
Age: Candidates must be at least 25 years old [for doctors], or 28 years old for self-employed. The maximum age is sixty-five.
Minimum turnover: For non-professionals, it is Rs 40 lakh, while for professionals, it is Rs 15 lakh. These figures should be as per the audited financial statements.
Minimal earnings after deducting taxes: The minimal profit after taxes for self-employed people or proprietorship businesses should be Rs 2 lakh. Audited financial documents indicate that the amount for non-professionals is Rs 1 lakh.
Stability of business: Self-employed need to show that they have been in business for at least five years, and physicians need to show that they have been in practice for at least three years.
It is required to have had an asset relationship—any loan—or a liability relationship—like a savings account or current account—with the financial institution for at least a year over the previous 36 months. Furthermore, a positive history of payback is expected.
Fees and Interest Rates
- 10.99% to 23.99% is the range of interest rates.
- Several banks have extremely low processing fees and other costs, these rates will make your personal loan more accessible.
What paperwork is required when applying for a personal loan?
- You will need additional documentation to show continuity in your business and stable revenue.
- These records can include tax returns, audited financial statements, current bank statements, and office leasing agreements.
- Depending on your organization’s setup and the kind of job you practice, you could need more documentation.
Perks of Personal Loans for Self-Employed
Let’s look at the perks of taking personal loans for self-employed people.
High-Value Loan—You can use the instant approval option without restrictions. Remember to check the range; every lender has a different range limit.
Simple and Easy Payment—Borrowers can get a hassle-free personal loan disbursement process. You can meet the eligibility requirements and provide the paperwork for instant loan approval. After completing all the steps, you can expect to receive the cash within a few hours.
Paperless Application Procedure—Another perk attached to loans for employed people is the paperless application procedure. Applying for a personal loan with any financial institution for self-employed individuals is simple and fast. Some lenders also have their own app, wherein you can easily apply for and get approved for a loan.
Flexible Pay-back Terms—With flexible interest rates and payback terms that range from 6-48 months for new applications and 9-51 months for current clients, you can conveniently repay the loan amount in manageable monthly installments.
Less Documentation—Your identity and proof of residence are the only two papers you need to provide to begin your personal loan.
No Security—Some lenders in the market provide the facility of no guarantor or security to avail yourself of a personal loan for self-employed.
No Unexpected Fees—We do everything we can to ensure that our processes are as clear as possible so you don’t have to worry about additional fees.