June 21, 2024

What is a Personal Loan for the Self-Employed Facility? Key Benefits to Know

working capital

Personal loan for self-employed is specifically available for those who run their own business. Here, borrowers can avail the traditional benefits of personal loans.

Every major financial institution in India offer these loans to its customer; the eligibility criteria and certain features may differ from one lender to another. However, the benefits of personal loans remain the same.

Key benefits of personal loan for Self-Employed

  • No end-use restriction

Personal loans for self-employed has no limit over its usage. Therefore, borrowers can invest this money to manage any financial requirement they have. They can invest this money in their business, or they can spend it on personal expenses like travel, wedding, medical treatment, etc.

  • No collateral required

Personal loans are unsecured, which means borrowers can avail these without mortgaging an asset.

  • Swift disbursal

Personal loans are also known as quick loans owing to their swift disbursal nature. If an applicant fulfils the required eligibility criteria and submits the necessary documents, it can be disbursed within 24 hours.

  • Flexible repayment tenor

Another significant benefit of personal loan is the flexibility it offers in terms of repayment tenor, which can go up to 60 months. However, it varies from one lender to another. Most reputed NBFCs in the country allow its customer to select the repayment tenor, they are comfortable with. Therefore, it makes the repayment more accessible to its borrowers.

  • Competitive interest rates

Personal loans for self-employed are available at a competitive interest rate. Such interest rate helps to keep the loan EMIs lower and makes the repayment more manageable.

Furthermore, nowadays, individuals can apply for such credits online. They can also submit the necessary documents online, and upon successful verification, the funds are disbursed.

Business loans – An ideal alternative

In case self-employed individuals have any financial requirement regarding their company, they can avail a business loan instead of a personal loan. These financial products are also unsecured loans and offer similar benefits.

However, business loans are more company-focused and generally has a higher threshold amount. Since there are no end-use restrictions, borrowers can spend the funds as per their business requirements. They can also use such credit to boosts the working capital of their venture.

Eligibility criteria for business loans

  • Age of applicants must be within 25-55 years.
  • Applicants must have an existing business, which is operational for at least 3 years
  • They must have filed income tax for at least one year.

Business loan documents required

  • Identity proof.
  • Address proof.
  • Income tax documents for a minimum of one year.
  • Bank account statement for the previous six months.
  • Profit and loss statement and balance sheet of the last two year, audited by a CA.
  • Business ownership documents.

Individuals planning to avail these loans to grow their business can easily do so with the help of NBFCs like Bajaj Finserv. The company offers this financial product at an attractive interest rate and favourable terms. Moreover, if individuals fulfil the eligibility criteria, they can avail up to Rs.30 lakh.

Furthermore, this NBFC also provides pre-approved offers on. These offers aim to make the loan application process smooth and time-saving. Pre-approved offers are available on a host of financial products like personal loans, business loans, etc. Customers can check their pre-approved offers by providing their essential details.

In conclusion, personal loans for self-employed are a significant financial product to provide financial support in any situation, planned or unplanned. It offers a wide range of customer-friendly benefits and secure repayment options. However, in case of any specific business requirements, individuals can consider business loans as an alternative.