What is Personal Loan Eligibility for Self-Employed People?

 

Why is personal loan flexible?

Personal Loan is unsecured loan means banks don’t ask for any security. Personal Loan is more fascinating than other loans because of its flexibility. You can get this loan at a high-interest rate with minimal paperwork and lengthy procedures. First of all, your purpose can be anything. Bank provides you fund for your personal use. As we can see the terms ‘Car’ Loan and ‘Home’ Loan which mean these loans are utilized for specific purposes whereas Personal Loan is for your personal expenses (exclude any illegal activity). If you’re a self-employed person then you can also apply for this loan. Check out the eligibility criteria

 

Personal Loan Eligibility criteria for a self-employed person

Being a self-employed person, you have to go through a rigorous paperwork. If you’re going to avail a personal loan then you should check the eligibility.

Nationality:Banks will only provide loans to Indian citizens. While applying for a Personal Loan, you have to show your citizenship status as an Indian.

Minimum Age:Being self-employed, you should be more than 23 years then you’ll be able to apply for a loan.

Maximum Age:If you’re a self-employed and of 65 years, you’re eligible to apply for a personal loan.

Experience:As we know there’s the difference between self-employed and salaried person’s designations. A salary person gets his/her monthly basis income whereas self-employed gets his/her regular income. A self-employed person can face fluctuation in his/her business but still can get this loan. A self-employed person needs to show his/her current business proof (at least 3 years) and ITR (Income Tax Return).

Commercial Space/Office:If you’re a self-employed person then you should have to show the registered office/commercial space’s proof. In case if you don’t have a registered office then you can show your house registration papers.

Bank Account:it’s compulsory to be a customer of the lending bank (one year at least) so you can apply for a personal loan.

Interest Rate: Personal Loan interest rate differs from bank to bank, but if we talk about recent running interest rate then its 16% to 26%. Negotiation is possible in your interest rate but all depend on your Credit Score. On the basis of Credit Score and Repayment History, a self-employed person can get a personal loan.