Running your own business offers immense fulfilment and freedom. But it also comes with financial challenges unique to self-employed individuals. Irregular cash flows, unpredictable expenses, and no fixed salary can stress your finances.
This is where personal loans for self-employed individuals come into play. With substantial loan amounts, flexible tenures, competitive rates, and fast approvals, personal loans offer a reliable and convenient financial solution.
Keep reading to learn more about the features, factors, and documents associated with personal loans for self-employed individuals.
Uses of instant self-employed loans
Instant personal loans offer flexible financing to fulfill diverse needs. Whether planned expenses or unexpected situations, personal loans provide accessible funds to power your goals and provide financial security. Here are some of the ways in which you can use a personal loan.
#1. Hassle-free travels
Personal loans enable you to check off your travel list destinations without budget limitations. You can fund every aspect of your trip using the loan amount, from flights and hotels to food, sightseeing and local transportation.
With an instant loan, you can finance international adventures, relaxing beach getaways, once-in-a-lifetime experiences and family holidays.
#2. Smooth relocation
Moving to a new location often involves various expenses, such as moving costs, temporary housing, security deposits, or even setting up your new home.
A personal loan can assist with these costs, making your transition smoother, especially when faced with unexpected relocation, such as for a new job or personal reasons.
#3. Debt consolidation
Managing multiple high-interest debts and their associated payments can be overwhelming. However, a personal loan can simplify your financial situation.
By securing an instant self-employed loan, you can consolidate your debts, reduce interest rates, and take a significant step toward achieving financial stability.
#4. Medical expenses
Rising healthcare costs make hospitalisations and procedures extremely expensive. Personal loans provide urgent access to funds so you can focus on recovery rather than financial stress during medical crises or planned treatments.
Pay for hospital bills, medications and life-saving care without dipping into long-term savings.
Personal loans for the self-employed can also be used for home renovation, down payments, and to cover education expenses.
Features of instant personal loans for self-employed
Instant personal loans for self-employed professionals come loaded with attractive features that offer flexibility and convenience:
#1. High loan amounts
Personal loans come with high loan amounts ranging from Rs 75,000 to 35 lakhs. You can access a reasonable amount of funds based on your eligibility to fulfill your needs comfortably.
#2. No collateral/security
Personal loans don’t require any collateral or security. Thus, you won’t have to put up any assets as collateral for the loan. This simplifies the process and saves you from the risk of losing your assets in case of repayment issues.
#3. Flexible tenure
Personal loans for self-employed individuals offer a lengthy repayment tenure of up to 72 months. This flexibility empowers you to select a duration that aligns with your financial capacity. You can choose a shorter term to repay the loan faster or a longer tenure to reduce the monthly installment amount.
#4. Quick approval
Eligible self-employed applicants can get loan approval within five minutes through an entirely online process. This enables quick access to funds in times of urgent need. However, fast approval is contingent upon meeting the lender’s eligibility criteria.
Factors affecting personal loans for self-employed individuals
Several factors come into play when applying for personal loans as a self-employed individual:
Age- You must be at least 22 years old to be eligible for a personal loan. This age requirement is standard across most lenders.
Monthly income- The loan amount you are eligible for is directly linked to your monthly income. The higher your income, the higher the loan amount you can qualify for.
Credit score- Your credit score is a crucial determinant of your creditworthiness. It reflects your responsible financial behaviour and can significantly impact your ability to secure an instant personal loan.
A credit score of 750 or above is considered excellent and can help you secure better loan terms and interest rates. Here are some best practices for maintaining a healthy credit score:
– Paying EMIs on time and clearing existing debts in a timely manner.
– Keeping credit card balances low and not exceeding your credit limits.
– Reviewing one’s credit report for errors regularly.
Documents required to apply for instant personal loan
Before you apply for an instant personal loan, ensure you have the following documents in place:
– Application form with your recent photograph.
– PAN Number and a self-attested copy of the PAN card.
– Proof of business existence like Tax Registration, Company Registration License, or Shop Establishment.
– Identity Proof such as a Passport, Voter’s ID, PAN Card, or Driving license.
– Residence Proof like Passport, Aadhar Card, Utility Bill or Ration Card.
– Bank Account Statements for savings and current accounts from the past year.
– Income Tax Returns filed for the preceding year.
How to apply for a personal loan for self-employed?
Applying for a personal loan is a quick and hassle-free process. Follow the steps below:
Step 1: Enter details- Provide the mobile number, name, and PAN-verified details.
Step 2: Input loan requirements- Enter the desired loan amount and tenure.
Step 3: Personal details- Fill in personal and banking information and upload copies of the necessary documents.
Step 4: Set up E-mandate- Authorise EMI payments through eMandate.
Step 5: Additional facility- Although optional, opting for the personal loan insurance facility is recommended to safeguard against personal loan liabilities.
Step 6: Instant disbursement- Accept the e-agreement, verify details, and enjoy instant loan disbursement.
That’s how simple and quick it is to apply for self-employed loans online.
Concluding thoughts
The journey of a self-employed individual is filled with highs, lows, dreams, and challenges. While the thrill of independence can be exhilarating, the road can sometimes be financially rocky. But with solutions like personal loans designed specifically for the self-employed, navigating through financial needs becomes smoother.
With its commitment to financial empowerment, Tata Capital offers personal loans tailored for self-employed individuals. We offer instant loans for self-employed with minimal documentation at attractive interest rates. For more information, visit our website.
20 December 2023
6 mins read
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