Personal Loan for Self Employed

The growth in small business and startups has created a need for self employed personal loans to help them achieve their needs with ease. Getting an instant loan for self employed can help you enjoy various benefits whether you own a start-up or a well-established company. You can get collateral-free loans at reasonable interest rates.

With a loan for self employed, maintain your cash flow with ease and support the daily functioning of your business with the help of an online personal loan for self employed from various banks like HDFC or SBI or NBFCs. This will help you achieve your financial goals and pave the way for success.

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Highlights of Instant Personal Loan for Self Employed

As people are exploring entrepreneurship and freelancing, there has been a rise in self employed professionals in India looking for a personal loan for their small business. Financial flexibility is crucial, and having access to instant online personal loans for your business at reasonable interest rates is no less than a boon. Let's explore the highlights of these loans, the advantages they offer:

Interest Rate 9% (p.a) onwards
Loan Amount 50000 to 50 Lakhs
Tenure 1 to 5 years
Minimum Salary 15,000/-
Approval Working days of the bank
Note: The interest rates mentioned are subject to change. Do visit the website for more information.

Personal Loan Interest Rates and Charges for Self Employed

The interest rates of instant loans for a self-employed person can vary based on factors; credit score, income stability, loan amount, tenure, and lender policies. Borrowers with higher credit scores and stable incomes get loans at lower interest rates. Whereas, personal loan for self employed with low cibil score might get a higher interest rate. Other additional factors also play a role here.

The table below generically indicates various interest rates offered by the best personal loan lenders in the market:

Interest rate 9% (p.a) onwards
Processing fee Up to 6%
Prepayment charges Up to 2%
Pre-closure charges 2% - 5%
Late payment charges 1% - 3%
Stamp duty 4% and 6%
Cheque bounce charges ₹200 - ₹500
Note- The interest rates mentioned are subject to change. Do visit the website for more information.

Eligibility Criteria for Self Employed Personal Loans

Eligibility for self-employed personal loans varies with different lenders. These differences could be with minimum income requirements, or CIBIL score or any other factor required by the lender. Some of the common criteria includes-

Citizenship Indian
Age of the borrower 21 - 60 years old
Credit score 600 above
Employment Self employed
Minimum monthly income ₹15,000
Note- The interest rates mentioned are subject to change. Do visit the website for more information.

Documents Required for Self Employed Personal Loans

Documents provide lenders with essential information to evaluate the applicant's instant loan eligibility, creditworthiness, and also the ability to repay the loan. The requirement may vary among lenders, so it's advisable to verify with your financial institution for self-employed personal loans. Here's a list of documents for self-employed personal loans and why they’re needed:

  1. Identity Proof: Helps to identify the borrower's identity and citizenship.
    • Document: Aadhaar card, passport, voter ID, or PAN card.
  2. Address Proof: To confirm the borrower's residential address.
    • Document: Utility bills, passport, Aadhaar card, or rental agreement.
  3. Income Proof: To assess the applicant's income stability and repayment capacity.
    • Document:Business income tax returns (ITRs), profit-and-loss statements, balance sheets, or audited financials.
  4. Bank Statements: To verify the applicant's financial transactions, income, and expenditure.
    • Document:Bank statements for the last 6 to 12 months.
  5. Business Proof: To confirm the existence and legality of the applicant's business.
    • Document:Business registration documents, GST registration, business PAN card, or shop and establishment certificate.
  6. Tax Returns: To assess the applicant's tax compliance and income history.
    • Document:IT returns for the last 2 to 3 years.

EMI Calculation for Self Employed Personal Loans

Calculating your EMI for a personal loan for self employed cannot be skipped. It helps in planning for your finances better and helps you maintain a good credit score.

With Buddy Loan EMI calculator, you can easily calculate how much EMI you need to pay; Enter the basic details like tenure, interest rate and your loan amount. The calculation is quick and easy.

₹
%
Monthly EMI ₹86
Principal Amount ₹1,000
Total Interest ₹32
Total Amount ₹1,032.00

Year Month Principal (A) Interest (B) EMI (A+B) Balance Loan Paid to Date (%)

You can also calculate your EMI manually with the formula provided below-

EMI = P x R x [(1+R)^N] / [((1+R)^N) - 1]Where in,

  • EMI is the equated monthly instalment.
  • P is the principal amount.
  • R is the interest rate.
  • N is the loan tenure.

Comparison of Personal Loan Lenders

Self-employed borrowers face unique challenges when seeking personal loans. This table highlights some of the best loan lenders who can cater to your financial needs. This simplifies your decision-making to secure loans & align with financial goals.

Banks/NBFCs Interest Rates(p.a)
State Bank of India 11.00% p.a onwards
HDFC Bank 10.05% p.a onwards
ICICI Bank 10.75% p.a onwards
Axis Bank 10.49% p.a onwards

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Note- The interest rates mentioned are subject to change. Do visit the website for more information.

Types of Loans Offered to Self Employed

Self-employed individuals have unique financial needs, which can make it challenging to qualify for loans. However, there are a number of lenders that offer instant loans to self-employed professionals in India. This introduction is an overview on types of loans available to self-employed individuals, as well as some of the key features and benefits of its type;

  • Personal loans: Personal loans are unsecured loans that can be used for any purpose. They are typically easier to qualify for than other types of loans, such as business loans, and they offer flexible repayment options.
  • Business loans: Specifically designed to help businesses finance their operations. They can be used for a variety of purposes, such as working capital, equipment purchase, and inventory financing. Business loans are typically secured by collateral, such as business assets or personal assets.
  • SBA loans: The Small Business Administration (SBA) offers a variety of loan programs to help small businesses get the financing they need. Banks and other lenders offer SBA loans. The SBA will guarantee a portion of the loan, which can make it easier for self-employed individuals to qualify.
  • Government loans: There are a number of government loan programs, available to support small businesses and entrepreneurs. These loans offer lower interest rates and more favourable terms than those from private lenders.
  • Microloans: Microloans are small loans that are typically offered to small businesses and entrepreneurs. They are typically easier to qualify for than other types of loans and they offer flexible repayment terms.

Instant Personal Loans for Self Employed - Features & Benefits

Personal loan for the self-employed have several benefits and here are few features that help you comprehend and make the most of your EMIs and banks that facilitate the below,

Collateral Free Loans

Get a personal loan for
self employed from
Rs 50000 to Rs 50 lakhs

Quick
Disbursal

Get instant,
hassle free loan

No Hidden Charges

Enjoy transparent,
no extra charges loan.

Transparency

Hassle-free application
and 100% transparency

Competitive interest Rates

Personal loans starts
at 10% p.a.

Flexible Tenure

Flexible tenure ranging
from 1-5 years

Steps to Apply for Personal Loan With Buddy Loan

Applying for a personal loan for self employed through Buddy Loan is a hassle-free journey, ensuring you get the funds you need quickly.

Our step-by-step guide simplifies the process, from application to the point of disbursal, making it easy to seek financial support.

  • Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
  • Step 2: Open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.
  • Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
  • Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
  • Step 5: Enter your work details (Including company name, years of service and Designation)
  • Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
  • Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.

With Buddy Loan, you can expect a swift turnaround, as we prioritise your needs and aim to disburse the loan at the earliest possible, so you can address your financial requirements with ease.

In financial trouble as a self employed professional, personal loans for self-employed can be a great way to reduce your burden. An instant loan for self employed offers flexibility, convenience, and competitive interest rates. Getting a loan for self employed without ITR or income proof can be challenging, but understanding the eligibility and documents required for personal loan for self employed can help you get the financial help you need.

We've also highlighted the importance of understanding your financial needs, comparing loan options, and maintaining a good credit score for being able to take a loan for self employed.

With all the information you need about instant personal loan for self -employed in India, it's time to take action towards your financial goals. So, why wait? Take the leap towards your dreams today. Apply now and turn your aspirations into reality!

Ready to take the next step? Apply for a Personal loan now!

Frequently Asked Questions

Yes, a self-employed professional or person can apply for a personal loan for self employed.

Self-employed people can use personal loans to get money for their business or personal needs

The maximum amount for a personal loan for self employed and for a personal loan for self-employed professionals is up to Rs 50 Lakh.

Self-employed people can use a personal loan for anything they need, such as business expenses, personal expenses, or debt consolidation.

To know how to apply for a self employed personal loan online and offline, you can follow the steps mentioned above and get loans starting at Rs 50000/- for self employed.

The eligibility criteria for a personal loan for self-employed individuals can vary based on the different banks. You can find the detailed eligibility criteria from the list above.

Self-employed individuals can provide proof of income, business documents, and personal financial statements to apply for a personal loan.

Self-employed individuals can receive funds from a personal loan within a few days to a few weeks, depending on the lender.

No, you may not need to provide security or collateral to take a personal loan for self-employed in India.

Interest rates on personal loans for self-employed individuals typically range from 9% to 10% p.a. onwards.

The minimum income for a personal loan for self-employed individuals varies from lender to lender, but it is typically around Rs. 15000 per month.

Yes, it is possible to get a loan if you are unemployed, but it may be more difficult and you may have to pay higher interest rates.

Yes, it is possible to get a personal loan for self employed without an ITR, but it may be more difficult and you may have to pay higher interest rates.

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