What is the Personal Loan Eligibility Criteria for Self Employed Individuals?
If you’re a self employed individual and wondering if it is easy for you to get a personal loan. Well, you are at the right spot. This article will do the needful to give you all the information related to personal loans for self employed individuals. The need for a personal loan can crop up irrespective of the fact that whether you’re a salaried person or a self-employed one. This is because all our dreams and aspirations coincide. All of us want to have a bombastic wedding, best travel explorations, superb dining experiences, send our kids to the best B-schools and more so. Banks have personal loan options for both salaried and self-employed individuals. However, the eligibility criteria and the documentation procedure differ to a great extent for both these categories. Sticking to the title of this article, let’s check out the eligibility criteria pertaining to personal loan for self-employed Individuals. What are the Benefits for Self-Employed Individuals in case of Personal Loans? Collateral Free: Self-Employed individuals are entitled to collateral free loans like other salaried persons. This means that self-employed people can take hefty loan amount without pledging any security. Huge Loan Amounts: Some banks and NBFCs offer personal loan amounts upto INR 30 lakh to self-employed individuals. You can use this loan amount to finance all kinds of needs. Attractive Interest Rates: There are some banks and NBFCs who want to encourage self-employed individuals to take personal loans. This is the reason they offer a very low rate of interest so that the EMI payment is not much of a burden. The lowest rate you can bag on your personal loan is around 12%. No Restrictions: There is no restriction as to how you want the loan amount. You can use it for any of your needs. How Can Personal Loan for Self Employed Application Can Be Made?
You can take both online and offline routes. But the online route is much more convenient. From just lying on your bed, you can apply for a personal loan. Some lenders also offer the convenience of uploading the documents on their website or they send someone to your home to pick up the documents. On the other hand, if you are not comfortable online, you can always take a tour to the branch. Eligibility Criteria for Self-Employed in Case of Personal Loans: ● The person must be a citizen of India. ● The minimum age of the individual should be 22 years. And the maximum age at the time of the maturity of the loan should be 65 years. ● The minimum annual income of the individual should be around INR 5 lakh. ● Self-employed professionals should have a minimum turnover of INR 15 lakh, whereas, Self-employed non-professional should have a minimum turnover of INR 40 lakh. ● The applicant needs to have at least 4 years of work experience. In the case of business applicants the business should be existent for at least 5 years. ● The minimum profit made by the self-employed person should be at least INR 20 lakh after profit. What are the Documents Required by Self-Employed Individuals? ● ● ● ● ● ●
Identity Proof - Aadhar Card/ PAN Card/ Passport/ Driving Licence Address Proof - Passport/ Driving Licence/ Electricity Bill Bank Statement for the applicant’s current account for the last 6 months. ITR of last 2 years Proof of Profession Continuity Age Proof - Birth Certificate