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  • Instant Personal Loans for Self-Employed Individuals

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  • Instant personal loans are unsecured loans that can help you take care of your emergency cash requirements. Due to the unsecured nature of these loans, they are typically offered to salaried individuals who have a steady income every month. However, there are some companies in the market that offer these loans to self-employed individuals as well. To qualify for these loans, these individuals must show that they have a steady stream of income through their business activities. Let’s take a look at the different aspects of personal loans offered to self-employed individuals.

    Best Instant Personal Loans for Self-employed Individuals

    Some of the best instant personal loan providers for self-employed individuals are given as follows:

    1. Bajaj Finserv

    Bajaj Finserv is one of the major financial service providers in India. The company offers personal loans to self-employed individuals at reasonable interest rates.

    Lender
    Rate of interest
    Minimum loan amount
    Maximum loan amount
    Bajaj Finserv
    18% onwards
    Rs.1 lakh
    Rs.30 lakh

    Benefits

    • Flexible repayment tenure up to 96 months
    • Collateral-free personal loans based on one’s credit history
    • Pre-approved loan offers for existing Bajaj Finserv customers

    2. Capital First

    Capital First is one of the renowned financial institutions offering instant personal loans for self-employed customers. The loans come with flexible terms and conditions.

    Lender
    Rate of interest
    Minimum loan amount
    Maximum loan amount
    Capital First
    12% onwards
    Rs.1 lakh
    Rs.25 lakh

    Benefits

    • Easy online application and approval process
    • Instant verification and loan disbursal
    • Flexible repayment tenure up to 60 months

    3. ICICI Bank

    ICICI Bank is one of the top lenders in the private sectors. The bank offers personal loans to both salaried professionals and self-employed individuals. Self-employed individuals must meet certain eligibility criteria to qualify for a loan from ICICI.

    Lender
    Rate of interest
    Minimum loan amount
    Maximum loan amount
    ICICI Bank
    11.25% to 17.99%
    Rs.50,000
    Rs.20 lakh

    Benefits

    • Instant loan approval within just 3 seconds
    • Flexible repayment tenure up to 60 months
    • Easy online application process

    4. HDFC Bank

    HDFC Bank is one of the top lenders in India. The bank provides instant loan approval and disbursal for eligible applicants.

    Lender
    Rate of interest
    Minimum loan amount
    Maximum loan amount
    HDFC Bank
    15.50% to 21.50%
    Rs.50,000
    Rs.40 lakh

    Benefits

    • Approval within 10 seconds for pre-approved customers
    • Optional insurance covers for protection
    • Personalised loan products with special interest rates

    5. Yes Bank

    Yes Bank has a plenty of great loan offerings for its customers. These loans are available with reasonable interest rates and appeal to both self-employed and salaried customers.

    Lender
    Rate of interest
    Minimum loan amount
    Maximum loan amount
    Yes Bank
    10.75%
    Rs.1 lakh
    Rs.40 lakh

    Benefits

    • Quick loan approval with minimal documentation
    • Flexible repayment terms
    • Loan approval in 60 seconds for eligible customers

    How Self-employed Individuals can Apply for Personal Loans?

    Most of the top lenders in the country now provide an easy application process for their customers. These applications can be made through the websites or mobile applications of these banks.

    • You may visit the website of the bank and check out the personal loan products offered. You can apply for a loan by providing your personal details here. Before you apply for a loan, you can check out the terms and conditions of these loans including interest rate, repayment tenure, EMI, etc.
    • Many banks now allow customers to apply for personal loans through their mobile applications. The process here is quite simple. You can simply login into the application and apply for the loan with the desired loan amount.
    • You may also use the services of a third-party aggregator like Bankbazaar. Here, you can compare the loans offered by various banks in the market and apply for the best one suitable for you. You can also keep track of your application with the help of the Bankbazaar mobile application.

    Eligibility Criteria for Self-employed Individuals

    Since personal loans are unsecured loans, lenders have strict eligibility criteria outlined for self-employed individuals to qualify for these loans. The eligibility criteria applicable to self-employed individuals are given as follows:

    • Age: Most lenders provide personal loans to people from their early twenties. The exact age criteria may differ from one company to another. For instance, HDFC offers personal loans to individuals who are between the age of 21 years and 60 years.
    • Continuity of business: This requirement is specific to self-employed individuals in the country. Their business must be operational for a specific period of time. Most banks expect self-employed professionals to show a continuity of business for at least 2 to 3 years.
    • Credit score: The credit history of an individual is one of the most important things that lenders check before providing a personal loan. This requirement is also likely to differ from one lender to another. It is advisable to maintain a credit score of at least 750. This indicates that the applicant is prompt in making repayments.

    Documents Required for Self-employed Individuals

    The following list of documents must be submitted by self-employed individuals while applying for a personal loan:

    • Identity proof (PAN, Aadhar, Voter ID, Passport, Driving License, etc.)
    • Address proof (Aadhar, utility bill, Passport, Voter ID, etc.)
    • Income tax returns (for 1 to 3 years)
    • Latest bank statement (for 3 to 6 months)
    • Last year’s business turnover audited by a CA

    Features and Benefits of Personal Loans

    Some of the notable features and benefits of personal loans are listed as follows:

    • Minimal documentation: Personal loans are typically offered with very minimal documentation. There are lenders who finish the entire process online. Since the documentation is minimal, the process is quick, and approval is provided instantly by most lenders.
    • Loans without collateral: Personal loans are offered to people without any collateral. This is ideal for individuals who don’t have any property to pledge to get some funds during emergency situations.
    • Quick disbursal: Most personal loans are disbursed by lenders within just one or two days. Due to the minimal documentation involved in the process, disbursal can be really quick for all eligible applicants. If you are already a customer with the bank, you can get funds in your bank account within hours. This will help you handle your needs during emergency situations.
    • Flexible repayment terms: Lenders allow flexible repayment terms for personal loan borrowers. The repayment tenure typically ranges from 12 months to 60 months. There are also lenders who offer higher loan tenures. Borrowers can choose the repayment tenure based on their affordability and annual earnings.
    • Option to pre-close: Most of the lenders in the market allow pre-closure of personal loans. If you ever come across a large sum of money during the loan tenure, you can pay off the loan and live without any worries. However, most lenders charge a pre-payment penalty if borrowers decide to close their loan early.

    FAQs

    1. What are the advantages of applying for a personal loan online?

    The most important advantage is the convenience associated with the online application process. You can apply for a loan from the comfort of your own home. Once the documents are uploaded online, you can get the loan amount instantly in your bank account. Self-employed individuals can save a lot of time when they apply online.

    2. What are the repayment modes offered by lenders?

    Most lenders provide different types of repayment modes for customers. Borrowers can pay their monthly instalments through cheques or bank transfer. However, the most common and convenient method is the auto-debit facility. In this method, the instalment will get debited automatically from your bank account and you don’t have to remember the repayment date every month.

    3. Can I do part prepayment of my personal loan?

    Part prepayment facility is offered only by a few lenders in the market. You need to check with your lender regarding this availability.

    4. Are there any restrictions for self-employed people on how they spend the loan amount?

    No. Lenders don’t set any restrictions on how the loan amount can be spent. Once they receive the money, self-employed individuals can use the funds for any personal or business needs.

    5. Do I need a guarantor for getting a personal loan?

    In most cases, lenders do not require any guarantors for providing a personal loan. However, if the credit score of the borrower is low, lenders may ask for a guarantor to co-sign the loan.

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