Personal loans are a type of unsecured loan that helps in fulfilling one or a different kind of financial obligation. An individual may face a financial crunch that can be solved through personal loans. These may include the purchase of a vehicle, marriage, and other personal purposes. Banks and financial institutions offer personal loans only to salaried individuals due to assurance of repayment.
Due to the absence of any collateral, banks only select salaried individuals due to a fixed income every month. However, even non-salaried individuals, i.e., business owners and self-employed individuals, can obtain personal loans with ease.
Who is eligible for obtaining personal loans?
Self-employed individuals can obtain personal loans if they fulfill the following given criteria:
- Age:
Banks and financial institutions offer personal loans to self-employed individuals of a designated age. This may range from 20 to 30 years, depending upon an institution.
- Business continuity:
Personal loans serve as unsecured loans which do not require any kind of collateral. Therefore, self-employed individuals with a business continuity of at least 2-3 years are considered for availing of personal loans.
- Good credit score:
Banks even look for candidates with good credit scores. Self-employed individuals with a satisfactory financial and credit record are considered for personal loans. A credit score of at least 750 is required for obtaining personal loans from a prestigious bank or institution.
Necessary documents to be submitted for obtaining personal loans:
Apart from all the prerequisites mentioned above, a self-employed individual is also required to submit dedicated documents. Following is a list of essential documents that must be delivered to a designated bank or institution for availing hassle-free loans:
- PAN card, driver’s license, passport and Aadhar Card (anyone), etc., as identity proof.
- Electricity bill, Voter Id and Adhaar card, etc. (anyone) as address proof.
- Income tax returns for the previous three years must also be submitted to the designated bank. This serves as a record or proof of the sound financial condition of the self-employed individual
- Bank statements of the last 6 months before the date of the loan application.
- Dedicated documents and records of business turnover authenticated and audited by a certified chartered accountant.
All these documents are essential which must be submitted along with the application form. Expeditious acceptance and fulfilment of loan applications can be made possible by submitting all the dedicated documents.
Ways to obtain personal loans by self-employed individuals:
Various banks and NBFCs like Money View have made facilities for obtaining personal loans by self-employed individuals. Moreover, they have made the process of obtaining such personal loans of the needed amount as convenient as possible. Self-employed individuals, therefore, can obtain the same through various means:
- Visiting the official website of a designated bank or financial institution:
Self-employed individuals like business owners can directly visit the official website of a particular bank. Various dedicated banks deliver reliable information through their official website that one can get hands-on. All the necessary terms and conditions, like the formalities of obtaining a loan and EMI, can be procured from the official website. Financial institutions and banks even offer online facilities and support services for customers. Moreover, the designated bank can be contacted directly through mail or a customer service portal for obtaining personal loans.
- Application for a loan through mobile apps:
Designated banks and financial institutions even offered applications for mobile devices. Self-employed individuals can serve necessary information like personal details and obtain hassle-free personal loans through an online process. The desired amount is directly deposited to the official bank account that can be utilized within the said terms and conditions. The process of personal loan applications is made easy and hassle-free through mobile applications.
Self-employed individuals or business owners are not restricted from using the amount of personal loan procured. It can be used for personal and business purposes. Various online marketplaces are there that can be accessed by self-employed individuals for availing of personal loans. These deliver dedicated services and support solutions for an easy personal loan approval process. The best bank or institution can be selected for disbursement of the needed personal loan amount.
Self-employed individuals have the flexibility to obtain personal loans only if they fulfill the designated criteria of a particular financial institution.