Personal loans can prove to be very helpful if sudden money is required. You can also take it to repay the loan of medical emergency, travel or any high interest. If you live up to the terms and conditions of a bank or non-banking financial company (NBFC), then this loan can be found quickly.
However, this process is slightly different for self -employed people because their income is not stable. Learn here how you can easily get personal loans despite being a self -employed individual.
Eligibility Criteria of Personal Loan for Self Employed people
Banks and NBFCs usually check the income and credit score of applicants before applying the loan. If you are self-employed individuals, then banks decide by looking at your last 3-6 months income details. Apart from this, it is also seen whether you have a stable income or not. In such a situation, you may need some important documents.
Document required for personal loan
Self Employed people require some general documents while applying for personal loans:
- Identification and address proofs like Aadhaar card, voter ID, PAN card
- Bank statement and income proof of last 3 months
- Income Tax Return (ITR) and professional assignment documents
However, the terms of different lenders and the list of documents may be different.
Self -improid tips to approve personal loans for people
Keep high credit score: A good credit score (above 700) can easily get you personal loans.
Keep business related documents ready: If you have your business or profession related documents like income tax return and bank statement, then your application can be strengthened.
Income to be stable: If your income is constantly increasing or it is stable, then this loan approval may increase.
Safe Loan Options: If you mortgage property or other valuable things, it can increase the possibility of your loan approval.
Good relationship with bank: If you have a good relationship with your bank and pay your debt on time, then it can be easy to give loan to the bank.
How to apply for personal loan?
You can apply for personal loans through the bank’s website or app. Apart from this, you can also compare different loan approvals through the Moneycontrol app and website. Moneycontrol has partnered with 8 lenders, where you can get a loan of up to 50 lakh rupees without any paperwork. Apart from this, interest rates are also quite low, which start at only 10.5% annually.
Summary
Getting personal loans can be challenging for self -employed people, but with the right documents and high credit scores you can easily get this loan. Learn through this guide how to increase your possibilities of approval and how to get an instant loan.
Top banks/ NBFCs
50 lakhs
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Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.