Factors to Determine Before Applying for A Personal Loan for Self Employed

If you are one of India’s self-employed professionals, pondering whether it is possible to get personal finance to advance your business, the answer is yes! It is possible to obtain a personal loan for self-employed, from multiple loan lenders. You can also manage your business funding, with such a loan.

Use of Personal Loan for Self Employed

  • Payment of overheads, such as electricity, rent, etc.
  •  Buying new machinery or upgrading an existing one
  •  Salary or wage disbursement
  • Expansion of business
  • Purchasing raw materials

Whatever be your business requirements, there are a few factors involved, that you must learn, before applying for personal finance.

Eligibility

A personal loan for self employed individuals is unsecured finance, hence it is not required to pledge any asset for security. But a high credit score above 750 will surely go your way. 

Documentation

Ensure that the documentation process of the personal loan you are applying for is minimal and hassle-free. Ideally you only need to submit a KYC document, proof of your business, passport size photograph, IT return file of the past year, and you are good to go. However, if your annual turnover is more than 1 crore, you might need to furnish supporting financial statements.

Processing Time

It is ideal to go for a loan scheme that takes less turnaround time. The entire process of application, verification, and loan transfer should not take much of your valuable business hours. 

Maximum Loan Limit

As a self-employed person, if you are seeking business funding, it is desirable to receive a high loan limit. 

Rate of Interest

It is vital to get a low rate of interest on your loan. A high-interest rate will only make repayments more difficult for you.

Easy Account Access

Always choose a personal loan provider with an online portal for easy access and management of your loan and repayments.

Flexibility

Flexibility in withdrawals and repayments tenor is something you should look forward to before applying for a business funding loan, as a self-employed professional.

The ease of application is also an important factor for personal loans. You can also apply for personal finance with Bajaj Finserv by filling in a few details in an online application form. Post submission, a representative will get in touch to guide you through the next processes.

Flexible repayment facilities such as Flexi-facility helps in lowering the EMI by up to 45%*. You have to pay interest only on the actual utilised amount. Also, You will also get unlimited withdrawals and part-prepayments at nil charges. You don’t have to make fresh applications every time you make a withdrawal.

Therefore, it is not possible to get a personal loan for self-employed professionals, it is also critical that efficient personal funding is available to the budding entrepreneurs. The borrower must do their market research, and find out the privileges offered by the leading loan lending institutions. 

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