Personal Loan Self Employed is a collateral-free loan which helps the self – employed such as the freelancers and the businessmen meet their business requirements, which include increasing the capital or purchasing new equipment, as well as personal requirements, which include funding a wedding or a house renovation, without them becoming a burden on their finances.
Personal loans are important as while other loans are specific e.g. car loans for cars, a home loan for your house, a personal loan can be used for just about anything. Scroll to know the details of a personal loan.
Personal Loan Self Employed Features
- Easy to Apply: You can apply for a Personal Loan Self Employed from the comfort of your home or office by visiting Dialabank‘s digital platform or visit the lender’s branch directly.
- Amount: You can avail this loan for a minimum amount of Rs. 50000 to a maximum of Rs. 40 lacs, helping you to get out of any financial crisis that you may be financing.
- Minimal Documentation: A self-employed individual can now upload their documents online and avail the loan protecting them from the hassle of carrying documentation files to the branch physically.
- Tenure of your Choosing: The self-employed individuals have the liberty to choose the tenure of their loan which usually ranges from 12 to 60 months.
- Quick disbursal of Loan Amount: After approval, it only takes 3-5 working days for you to get the disbursal of your personal loan self employed.
Personal Loan for Self Employed Interest Rates
Personal Loan self employed starts from 10.50%, personal loan interest rates for self- employed individuals varies from person to person majorly depending on his credit score, age, repayment ability, amount, etc. Major Banks providing the loan at low-interest rate are:
|HDFC Bank||10.75% to 21.30%|
|Axis Bank||12% to 24%|
|State Bank of India||starts from 10.50%|
|Citi Bank||10.50% onwards|
|Bajaj Finserv||starts from 12.99%|
Factors Affecting Personal Loan Self Employed Interest Rates
- Credit score: Banks offering Personal Loan first check your credit score as it depicts your entire credit history and gives the bank a surety that you’ll be repaying the loan on time. Higher the credit score lower will be the interest rate charged from you and vice versa.
- Level of Income: Interest rate charged on Self Employed Interest Rates are indirectly proportional to the level of income of the applicant, therefore, higher the level of income lower will be the interest rate charged as you’ll be able to repay the loan easily and smoothly.
- Stability of business: If your business is running successfully for 2 years in profit, you will get a self employed personal loan at a low-interest rate as you have a stable business.
- Existing Customer: If you’re an existing customer with the bank having an account with the bank, applicants get easy approval with a low-interest rate charged on their Loan.
Personal Loan Self Employed Documents Required
- Business Proof: Proof of Business Existence, Certificate of Registration with Appropriate Registration Body, Certificate of Incorporation, etc.
- Identity Proof: Aadhaar Card, Voter ID Card, PAN Card, Passport, Driving License, etc.
- Address Proof: Ration Card, Utility Bills (Phone Bill, Electricity Bill, etc.), Aadhaar Card, Voter ID Card, PAN Card, etc.
- Income Proof: Certified Profit And Loss Statement, ITR of Past 2 years, etc.
Personal Loan Self Employed Eligibility Criteria
- You should be self-employed to be eligible for this loan.
- You should be between 21-60 years of age.
- You should have an adequate income to be eligible and it usually depends on the lender.
- You should have a running business of at least 2 years.
How to get Personal Loan Self Employed if:
1. You have a low Credit Score
When you apply for personal loan self employed your lender will first check your credit score. This condition applies ob both salaried as well as self-employed individuals who have applied for Personal Loan. Generally, applicants with a low credit score face difficulty in getting their applications accepted for the Loan.
Moreover, even if the application is approved by any means for the loan, the applicant will have be charged a have interest rate on the loan as a result of a low credit score. Therefore, it is advisable to self-employed individuals with a low Cibil score to first try and make their credit score good then apply for the loan.
2. You have no Income Proof
Income Proof provides the lender with a surety that the borrower is and will be paying his loan on time. After Credit Score, it is the major criteria to evaluate an application for Personal Loan. Both the borrowers income as well as the debt on his head already is considered by the lender to assure the repayment capability of the borrower.
Self-employed applicants do not have the option of providing a Salary slip as in the case of salaried individuals. Also, it is mandatory to provide income proof to the lenders in case of applying for a personal loan which is an unsecured loan. Therefore, it makes it impossible for a self-employed individual to take a personal loan without providing any income proof and the related documents.
Personal Loan Self Employed EMI Calculator
DialaBank gives you the option of calculating and evaluating the EMI on your loan way before even applying for your Personal Loan self employed. It helps all the Personal Loan Self Employed applicants to make sure what they’ll be paying and that they do not go overboard with their expenses. You just need the following Main Aspects of your Personal Loan to use the feature:
- Interest Rate to be charged on Loan
- Amount of the Loan
- Repayment tenure of the loan.
The following table depicts how the Personal Loan EMI Calculator works:
|Loan principal @ interest rate||Tenure|
|1 year||2 years||3 years||4 years||5 years|
2 lakh @ 11.99%
|Rs. 17,768||Rs. 9,413||Rs. 6,641||Rs. 5,265||Rs. 4,447|
|3 lakh @ 12.12%||Rs. 26,672||Rs. 14,139||Rs. 9,982||Rs. 7,918||Rs. 6,692|
|6 lakh @ 13%||Rs. 53,590||Rs. 28,525||Rs. 20,216||Rs. 16,096||Rs. 13,651|
9 lakh @ 13.5%
|Rs. 80,596||Rs. 42,999||Rs. 30,541||Rs. 24,368||Rs. 20,708|
To use the Personal Loan EMI Calculator click here.
Personal Loan Self-Employed Apply Online
You can apply for A Self Employed Personal Loan online by following the given steps below:
- Visit DialaBank and fill the form with basic required details.
- Wait for A call from our Relationship Manager who is an expert in the field and will guide you in taking the best deals based on your requirements.
- Complete your application online and submit it or choose the option to submit documents from the comfort of your home and wait for the approval from the bank.
FAQs About Personal Loan Self Employed
✅ Can you get Personal Loan Self Employed if you have a low credit score?
Yes, you can get a Personal Loan even if you have a low credit score but you may be charged high-interest rates on your loan. However, keep in mind that lenders see credit score as a major basis of approving applicants for Personal Loan.
✅ Can a self- employed individual get a loan with no financial or income documents?
No, it is not possible for you to get a loan without your income documents as your prospective lender cannot make the assessment of your repayment capabilities. Therefore, financial or income documents are necessary for getting approval of the personal loan.
✅ What if I fail to pay an EMI?
If you fail to pay an EMI on time you not only will be charged a late fee on the EMI but chances of your Credit Score decreasing are also high.
✅ Can I prepay/foreclose my personal loan?
Yes, you have the option of prepaying/foreclosing your personal loan. However, most banks/lenders charge a foreclosure fee for the same. Most lenders have a fixed lock-in period which is usually 6 months and defines how many regular EMIs you have to pay before you can foreclose your Personal Loan.
✅ Do I have to pay a processing fee to process my loan application?
Yes, all banks and lenders charge a processing fee on your loan application which is usually 1% of the total amount to be loaned + GST. However, the exact amount varies from lender to lender and also depends on the amount of the loan to be borrowed.
✅ How can I apply for personal loan self- employed offline?
You can apply for Personal Loan Self Employed by visiting the nearest bank branch offering loans and filling the due application and submitting it along with the required documents to the loan officer.
✅ Can I use a personal loan for self-employed for use in business purposes?
Yes, you can use the Personal Loan amount for your personal or professional use. As of now there is no end-use guidelines for the amount received through Personal Loan.