Finance

Guide to Apply for a Personal Loan for Self-Employed Individuals

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Employment generation remains one of the most vital crises for the Indian government that has been reflected via a protracted delay in the release of the National Sample Survey Organisation (NSSO) employment/unemployment data.

Lakhs of employees have been laid off by enterprises across India. Subsequently, policymakers have been taking initiatives towards ‘jobless growth’ that involves –

  • Skill-training opportunities, and
  • Self-employment options.

Such policies are significantly backed by an offering of financial assistance via personal loans for self-employed.

It is an effort to empower the self-employed section financially and has resulted in an increased number of individuals being brought into the fold of self-employment.

Such initiatives as personal loans for Self-Employed ensure that they are financially covered for diverse expenses considering that they come with no end-use restrictions.

These expenses include –

  • Emergency medical issues.
  • Pursuing higher education.
  • Building your business brand.
  • Arranging for a wedding.

However, availing such credits is a crucial financial decision. Thus, individuals need to compare loans offered by various reputed financial institutions and then settle for an advance that best suits their financial requirement.

Pointers to know before applying for a personal loan for self-employed individuals

Personal Loan for Self-Employed

Availing personal loans is particularly beneficial in case of seed entrepreneurs considering that these are collateral-free loans. Sans the requirement to mortgage an asset, this has developed into a favored mode of financial assistance.

Thus, multiple individuals now offer their advances. All that one requires to do is compare lenders and check up on these factors before availing a credit-

Required and offered credit amount

Compute the required loan amount and approach a suitable lender that caters best to your financial requirement. Make sure to use an EMI calculator and avail a credit amount that yields affordable installments.

This ensures that the resultant repayment schedule is comfortable enough for borrowers to easily repay over time.

The EMI of an availed loan

Before availing a personal loan for self-employed, make sure to use an EMI calculator by entering your loan amount, rate of interest and tenor and compute the impending installment amount. It ensures that you opt for an advance that caters to your existing repayment capability.

Additionally, reputed lenders like Bajaj Finserv offer Business Loans in case of entrepreneurs looking for considerable funding specifically for their professional requirements. These advances provide its borrowers with an added advantage of access to significant funding of Rs. 30 Lakh.

As an added incentive, this leading NBFC brings you with pre-approved offers that ease the application process to avail financial assistance.

Required eligibility criteria and documentation

Keeping in mind the convenience of potential applicants, eligibility criteria and documentation to avail such credits are kept to a bare minimum and result in a hassle-free application procedure.

Eligibility criteria

  • In the age bracket of 25 to 55 years.
  • Filing of business IT returns for the last 1 year.
  • Turnover of last year, audited by a CA.
  • A business vintage of a minimum of 3 years.

Documentation

  • Passport sized photograph.
  • Bank account statement of the previous month.
  • KYC documents.
  • Relevant financial document.
  • Business proof

Following these pointers above, is succeeded by an individual proceeding with a lender who offers a streamlined application procedure to avail a personal loan for self-employed.

How can an entrepreneur apply for a personal loan for self-employed?

The application procedure to avail personal loans involves following these steps –

Step 1: Visit the official site of the chosen lender.

Step 2: Fill in the mandatory details on the online application form. Click on the ‘submit’ tab.

It is followed by your lender’s verification of documents and eligibility criteria and approval and disbursal of the sanctioned sum.

Thus, these collateral-free loans offer its borrowers with a host of benefits. Entrepreneurs can enjoy its benefits and ensure that they use this funding to meet their personal and professional financial requirement and become a successful small business owner.

Conclusion

With the recent slashed down job opportunities, self-employment is inevitably gaining ground across India. It is well supported by initiatives of skill-training and increased focus on creating self-employment opportunities. One such endeavour is offering financial assistance via personal loans for self-employed.

Considering the no-end use restriction on this advance, entrepreneurs can use this funding to meet their diverse personal and professional financial goals.

Additionally, even if entrepreneurs are seeking convenient access to considerable funding for specifically their professional requirement, they can avail business loans.

However, since multiple NBFCs now offer their credits, one needs to compare lenders and then settle upon one that best caters to their financial requirement.

It requires one to keep in mind a few pointers – required and offered credit amount to avoid borrowing more than what is needed; EMI of a loan availed to ensure that your chosen loan is structured as per repayment capability of a borrower; required eligibility criteria and documentation to ensure speedy and hassle-free loan processing.

Considering that applicants follow up with these above-mentioned pointers, all that they need to do is apply for an advance. They can visit the official site of a lender and fill in the application form with their required details.

If you have any question in you mind about this comparison, then feel free to ask us and post lovely comments below or contact with us.

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