Personal loan is a type of loan wherein there are no restrictions as to what the loan amount can be used for by the borrower. The loan amount received using a personal loan can be used for any personal expenditures including wedding, home renovation, cost of a vacation, medical treatments, cosmetic procedures, and other such expenses. This loan works like any other loan but it offers more flexibility and is pretty much available to everyone. There are two types of personal loans - unsecured and secured. There is no need for collateral or security in the case of unsecured personal loans whereas secured personal loans require the borrower to provide the same.
Self-employed individuals are those who own an unincorporated business all by themselves. They are the sole proprietor of the business. Even though it might seem like it might be hard for self-employed individuals to avail personal loans due to the fact that they are not salaried, that is not the case. They can easily avail these loans without any hassles. Usually, personal loans are granted to salaried, non-salaried, and self-employed individuals. The documentation and interest rate offered for personal loans might be different for a self-employed individual.
Banks and non-banking financing companies (NBFCs) provide personal loans to self-employed individuals without any hassle. The difference between the personal loans offered by banks and NBFCs is that banks have stringent rules and some of the banks provide these loans only to individuals with a good credit score, while NBFCs are more lenient with the requirements when providing this type of a loan. NBFCs charge a higher interest rate compared to banks when it comes to personal loans.
Having a bad credit history is never a good thing when one has to apply for loans. It can ruin or reduce the chances of getting your loan application approved. However, it is still possible to avail loans with a low credit score. Self-employed individuals with a bad credit profile can avail loans through no-credit-check loans or secured personal loans. In such cases, lenders offer a loan to the applicant based on the collateral provided by him or her. Therefore, it is a win-win for both the lender and the borrower.
Listed below are the features of personal loan for self employed borrowers.
Interest rate: The rate of interest offered for personal loans depends on the loan amount and the repayment capacity of the borrower. Different banks offer different interest rates so it's best to shop around before you make a decision.
Listed below are the benefits of personal loan for self employed individuals.
Listed below are the disadvantages of personal loan for self employed persons.
A self-employed individual can avail a personal loan in India without any hassles. The loan amount granted to a self-employed person depends on his or her repayment capacity. Different banks have various terms and conditions to provide these loans to their self-employed customers.
Listed below are the top 5 lenders that offer personal loans for self-employed offered in India.
ICICI Bank Personal Loan is a multipurpose loan that comes with a fixed interest rate. The loan can be repaid in easy installments and there is no need for collateral or security. It comes with easy documentation and quick processing.Loan features
Listed below is the eligibility criteria for ICICI Bank Personal Loan:
Listed below are the documents required for ICICI Bank Personal Loan:
Bank of Baroda (BoB) offers personal loans to self-employed professionals and business persons to help them handle financial requirements such as marriage expenses of self or family member, child’s education, business expansion costs, vacation expenses, home renovation expenses, etc.Loan features
Citibank offers personal loan to self-employed borrowers which can be granted within a span of two days. The loan offers full and part repayment options along with additional funds. It offers loans for terms ranging from 12-60 months.Loan features
Listed below is the eligibility criteria for Citibank Personal Loan:
Listed below are the documents required for Citibank Personal Loan:
HSBC Personal Loan for self-employed individuals comes with flexible repayment terms and attractive interest rates. The personal loan can be used for any short-term financial crisis.Loan features
Listed below is the eligibility criteria for HSBC Personal Loan:
Listed below are the documents required for HSBC Personal Loan:
IDBI Personal Loan helps meet unexpected financial emergencies. Be it a wedding expense or a luxury trip, you can avail this scheme to receive the required funds during a financial crisis.Loan features
Listed below is the eligibility criteria for IDBI Personal Loan:
Listed below are the documents required for IDBI Personal Loan:
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