How a Self Employed Person can Avail Personal Loan in India?💰

Are you self-employed❓ In need of a personal loan in India? Read this article to know about the personal loan eligibility criteria, documents required etc. ✅

Around half of India’s population is working as self employed individuals. Most lenders are not likely to take the risk of giving out credit to an independent individual. Lenders’ concerns revolve around the fluctuations in the flow of income. So, how can you possibly avail a personal loan as a self-employed? Let’s look at the eligibility criteria first.

 What Are The Criteria Of Easy Loan Eligibility For An Independent Individual?

The personal loan eligibility of an independent individual differs from that of a salaried individual. To get a personal loan for self employed approved, a lender would want to be sure that you can repay it on time.

The eligibility criteria for a personal loan for a self-employed individual are listed as follows:

Most lenders require that the age of the individual should be in the range of 18-70 years.
Lenders prefer applicants with a good credit history along with a CIBIL credit score above 750.
People with minimum earnings of Rs. 12,000 per month in rural and Rs. 21,000 per month in urban areas are more trusted for repayment.
To remove the risks of defaults, lenders require your business venture to have existed for over three years straight, and the ITR of three years is required for availing the loan.

Depending upon the credit profile of the self-employed individual, the loan amount for self-employed individuals can go up to Rs. 50 lakhs.

What Are The Required Documents To Avail A Personal Loan For Self-employed?

Most of the documents that are required to verify the details of the applicant are common. Here is the list of documents that are required by most lenders during the application process:

 - Proof of age through identity verification
 - PAN card details
 - Filled form of the self-employed personal loan application
 - Bank statements of the applicant (last three months)
 - Applicant’s proof of residence. It can be utility bills, Voter ID card, Driving license
 - Slips of income or salary (last three months)
 - Income Tax Return (ITR) documents (previous three years)
 - Balance sheets certified by a CA, along with Profit and Loss Account (previous three years)

How Can You Get Qualified For A Personal Loan – Factors Affecting Personal Loan Application?

Everyone thinks of getting loan approval as soon as possible. Still, while applying for a personal loan for self-employed, it is crucial to consider some factors to trigger quick approval.

What is your financial status?

Being organized with your finances is the first step towards improving the chances of personal loan approval. As self-employed individuals have fluctuating income, alternate forms of earnings play a crucial role in getting easy personal loans. Such alternative sources include investments, rents, equity holdings, etc.

Are you safe from contingencies?

It is essential to prepare yourself for contingencies, as your lender would need to know how you would be able to repay if your business starts incurring losses. You can provide assurance to the lender by providing some proof of savings.

Do you have relevant documents to prove the stability of income?

A significant difference between a salaried and a self-employed individual is income stability. Lenders would require you to have relevant documents to prove that you have a stable income.

Conclusion:

Getting a personal loan as a self-employed individual can be a bit tricky, but you can avail easy personal loans if you follow the above guidelines correctly. With the guidelines, you have to fulfill the personal loan eligibility criteria and submit all necessary documents.

Additional Read: Know How Loan Calculators Can Help in Managing Personal Loan For Home Renovation
Name

Business,21,Education,6,Entertainment,2,Finance,32,Food,3,Health,14,Lifestyle,25,other,37,Sports,1,Technology,59,Travel,8,
ltr
item
SceneLinkList | Premium Guest Posting: How a Self Employed Person can Avail Personal Loan in India?💰
How a Self Employed Person can Avail Personal Loan in India?💰
Are you self-employed❓ In need of a personal loan in India? Read this article to know about the personal loan eligibility criteria, documents required etc. ✅
https://1.bp.blogspot.com/-Wg9VmMwQi9Q/XpQqsCZNCpI/AAAAAAAAArM/w1BLttkpSgYfQ6ZZVZfUInM9IMn8UoZ_QCLcBGAsYHQ/s640/loan_1560835935121.webp
https://1.bp.blogspot.com/-Wg9VmMwQi9Q/XpQqsCZNCpI/AAAAAAAAArM/w1BLttkpSgYfQ6ZZVZfUInM9IMn8UoZ_QCLcBGAsYHQ/s72-c/loan_1560835935121.webp
SceneLinkList | Premium Guest Posting
https://www.scenelinklist.com/2020/04/avail-personal-loan-in-india.html
https://www.scenelinklist.com/
https://www.scenelinklist.com/
https://www.scenelinklist.com/2020/04/avail-personal-loan-in-india.html
true
4925028716494220212
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content