As A Self-employed Person, What Is My Personal Loan Eligibility?

In the present times, when your wishes and desires cannot wait for you to have an adequate amount in our bank account, Personal Loans offer you the significant financial freedom to pursue your deepest desires and wishes, without worrying about your bank balance or clearing out your entire savings. Personal Loans are one of the most flexible sources of funding in the present times and can be used for any purpose that you desire such as going on a vacation, home renovation, further education, purchase of new gadgets, and so on.

Once the funds are transferred into your account, then you are free to use them for any purpose that you deem fit, without any need to explain the end usage to the lender. As Personal Loans are unsecured, there is no need to furnish any security to avail the facility. The rate of interest against Personal loans varies depending on your eligibility and the lender. Repayment towards a Personal Loan can be made in up to 60 months,and the amount available can go up to Rs. 50 Lacks. With such excellent features, it is no surprise that Personal Loans have become highly popular these days.

In order to cater to the rising demand for Personal Loans, most financial institutions have now started to handle the entire process related to these loans through online channels and give Personal Loans Online Approval in a matter of few minutes. You can now check your eligibility and compare various Personal Loan products at online finance marketplaces like My Money Mantra. Once you are able to shortlist on the most suitable loan product for yourself, you can conveniently apply using the simple online application form and get your Personal Loan Eligibility approved within a few minutes and if you are fine with the various terms and conditions of the loan agreement, the amount will be transferred to your account within three working days.

Who can avail Personal Loans?

Earlier, Personal Loans were available only to salaried individuals as they lenders were assured of timely repayments,but now with changing economic scenario of the country, even self-employed individuals can avail the facility of Personal Loans. Self-employed individuals are classified as persons who are involved in handling their own unincorporated business and are sole proprietors of their business or are self-employed professionals who are duly licensed by statutory authorities to practice their trade. Sole proprietors or self-employed individuals can now easily avail Personal Loans from various financial institutions, but the documentation requirement and eligibility assessment process are slightly different for them. 

Personal Loan Eligibility for Self-employed

If you are also a self-employed professional or owner of a sole proprietorship business, then you can also easily avail a Personal Loan for your personal as well as professional requirements.

Although the specific eligibility criterion differs across lenders, the following parameters are shared across all financial institutions operating in India:

  • Eligible entities: Following entities or individuals are classified as self-employed and are eligible for Personal Loans:
  • Sole proprietorship business
  • Chartered Accountants
  • Doctors
  • Engineers
  • Lawyers
  • Architects and
  • Any other professionals having required qualifications and license from statutory authorities
  • Credit score:Ideally you should have a credit score of over 700 to get the highest amount as a Personal Loan at lowest interest rates. It does not mean that you will not get a Personal Loan if your credit score is below the specified threshold, only the rate of interest would be a little higher. But under any circumstances, your application won’t be processed if your credit score is below 650.
  • Age requirements: In order to be eligible for this loan, your age should be not less than 21 years and should not be more than 65 years at the time of applying for the loan.
  • Work experience:If you are a self-employed professional, then in order to be eligible for a this loan you should have a minimum work experience of 3 years and if you are a sole proprietor then you must have a work experience of minimum 4 years,and the business must be profitable for at least last three years.
  • Financial information:Along with the personal loan application form, you need to provide crucial financial information related to your business such as Income Tax returns for three years, GST returns for one year, audited financial statement, loan repayment track and provisional accounts for the current year. 
  • Banking information: In order to assess your banking behavior, the lenders require you to provide your savings account and current account bank statements for the last one year. Ideally, you should maintain a healthy balance in your account,and there should not be any inward cheque bounces.
  • Available amounts: Depending on your profile, you can avail personal loans of up to Rs. 50 Lacks as unsecured loans. In case you need higher amounts, then you must provide collateral to the lender.

Personal Loans offer you an excellent opportunity to take care of your individual as well as business related financial requirements without straining your savings as well as your cash cycle.

Also Read: 5 Best Smartphones Under Rs. 1 Lack and How to Fund Them

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