Can You Get Personal Loan for Self-Employed People Without Income Proof?

Indian economy has experienced huge growth in the number of unsecured loans in recent years. The number of personal loans grew at 20.4% between 2017 and 2018. A study in December 2017 showed that the number of consumers with loans were approximately 6.54 Crore, an increase of almost 1.27 Crore from December 2016.

Such growth is mostly because of the attractive features and benefits offered by various financial institutions. Easy to meet eligibility criteria, affordable personal loan interest rates, flexible tenor, etc. help a borrower to choose the best financial product according to his/her requirement. Lenders only ask for a good credit score, no history of defaulting, and proof of employment and income from the borrowers’ part.

A self-employed individual without any income proof can apply for a loan. Preferably, a secured loan.

In this case, he will have to pledge some collateral to avail the credit against it. Generally, such collaterals can be a house or any such physical asset, a fixed deposit, etc. He can use the money to fund any business or personal requirements. These loans do not have any end user restriction, which makes them ideal to tackle most financial emergencies.

Eligibility for personal loans for self-employed

A self-employed individual can apply for advances without any income proof. There are some basic personal loan eligibility criteria that he or she has to fulfill. Let’s take a look.

* The individual should be between 22 and 55 years of age and a residing Indian citizen.
* He should have a property to pledge as security against the advance.
* The borrower should also have the proper documents of the asset which he has to submit to the lender while applying for a loan.

The eligibility criteria might vary between lenders; however, these are some of the common guidelines one has to meet while one applies for an advance.

The processing fees and interest rates on personal loan are also nominal compared to other types of unsecured finances. Companies like Bajaj Finserv have an attractive rate of interest, with a minimum processing fee.

Such easy to meet eligibility criteria, nominal processing fee and low-interest rates on personal loan make it an ideal financial product for those who need an advance to meet monetary needs.

A personal loan for a self-employed individual also offers several features and benefits over other types of credits. Here is a brief overview of the various advantages.

* Collateral-free in nature – A borrower can avail a significant amount (up to Rs. 30 Lakh) without pledging any collateral against the sum if he shows an income proof. It relieves the borrower from the worries of losing any asset in case he misses an EMI or repayment date.

* Quick approval and disbursal – Most financial institutions offer instant approval and disbursal of the loan amount. Thanks to the online application process and minimum documentation, a loan application is typically approved within minutes, and the sum is disbursed within 24 hours of approval. It makes a personal loan ideal to meet emergency financial hurdles.

* Online account access – Most financial institutions have brought the entire process online, which allows a borrower to access and manage his loan account at his convenience any time.

Documents required to apply for personal loans

A lender will ask for certain documents when an individual applies for an advance. For a self-employed professional without an income proof, these may be required –

1 Recent passport-sized photograph.
2 Proof of identity like Aadhaar, passport, Voter ID, etc.
3 KYC documents.
4 Proof of address.
5 Property documents to pledge against the loan.
6 Bank account statement.

These are some of the documents asked by most lenders in India. Certain financial institutions may ask for some extra papers to process the advance.

The attractive interest rate, ease of how to apply for a personal loan, transparency, instant processing, and no end user limitation make personal loans an attractive option for a self-employed individual. Lending institutions offer a substantial amount of money with minimal documentation at flexible tenors, making such advances one of the most preferred type of credit in India. 

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