Personal Loan

A Complete Cheat Sheet on Personal Loan for Self Employed is Here

Are you a self-employed who is looking for a personal loan to meet your varied needs? If yes, reading this article is going to be worth for you. Talking about self-employed, they are those individuals who own the incorporated business by themselves.

They are basically the sole owner. However, one thing that needs to be mentioned here is the fact that many people think that personal loan for self-employed is not possible as most of the banks usually offer this unsecured credit facility to salaried only. But you would be glad to know that this loan can easily be availed by these individuals also by following the certain norms.

Yes, in order to avail this credit facility, those individuals need to meet the criteria set by the bank so as to get the required amount. However, different banks have different criteria as far as availing this credit facility is concerned but just to give you a better understanding of the same, below we have mentioned the general norms.

Eligibility Criteria

  • An applicant should be a resident of India
  • He/She should have the minimum age of 21 years while maximum age should be 60 to 65 years at the time of loan maturity
  • The minimum turnover or profit of the applicant should be as per lender’s requirement
  • An individual should have at least 3 years of minimum work experience in the current business

Rate of Interest

Talking about the rate of interest, you would be glad to know that it usually varies from 10.75%-25% per annum , which basically depends on the profile of the applicant. However, in many cases, lenders also consider the personal loan eligibility criteria of an applicant which is another deciding factor for the rates. Not only this, on maintaining the good relations with a lender gives you an opportunity to negotiate for the better rates. Furthermore, one of the best things to get the lowest personal loan interest rates is by comparing the different lenders so that you can grab the best deal.

How to Apply

When it comes to applying for this unsecured credit facility, you have plenty of options available for the same. You can either choose online or go an offline mode to complete the process. Let’s just check out the different processes through which you can fill the application form:

  • Visit the Branch
  • Online Application
  • Through Email
  • Over the Phone

Documents Required

Next in line comes the documentation part. Yes, an applicant needs to have a complete list of documents ready so as to enjoy a hassle-free journey. Make sure the documents should be authentic and legal. Take a look at the documents below…

  • The duly signed application form
  • Passport size photograph
  • Proof of ID – Passport/ Voter ID/ PAN Card
  • Proof of age – Birth certificate/ passport
  • Proof of residence – Passport/ Utility bill/ Allotment letter
  • Proof of income – Latest Income tax return (ITR) along with computation of income, Last 2 years Balance sheet and profit and loss certified by a CA
  • Proof of Signature verification- Passport/ PAN Card
  • Personal loan without bank statement is not possible as an applicant needs to give Last 3 months bank statement/ last 6 months bank passbook


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