Thanks to technology and advancements in the financial sector, getting a personal loan for self-employed individuals has become relatively easier. Earlier, it was only the salaried sector that would get preferential rates and pre-approved loan. Fast-forward to today, many banks and financial institutions in India offer personal loans to self-employed individuals at competitive interest rates.
Read on to know the features and benefits, compare interest rates and tenure, eligibility and documents required to apply for a personal loan online today!
Eligible self-employed applicants could get their loan disbursed almost instantly. For instance, with Navi, you can get personal loan in minutes at attractive rates with minimal documentation.
You can get personal loans ranging from Rs.10,000 to Rs.45 lakh. So, apply according to your requirement. Note that the final amount disbursed entirely depends on the lender.
Personal loans are unsecured loans, which means you don’t have to pledge collateral.
Traditional banks still have a paperwork-driven system. However, self-employed professionals can apply for personal loans with just PAN card and Aadhaar number through the Navi app. This makes availing of a loan hassle-free.
Banks and financial institutions provide flexible loan repayment tenure ranging from 3 months to 6 years. Therefore, you can plan your EMI payment accordingly without worrying about financial pressure.
There are many reasons why a self-employed individual applies for a personal loan:
For any urgent fund needs you can simply apply for a personal loan online. Check how to do so in the next section.
|NBFCs/Banks||Interest Rates (p.a)||Max Loan Amount||Tenure|
|Navi||Starting at 9.9%||Up to 20 lakh||3 months to 72 months|
|Citibank||9.99% – 16.49%||Up to Rs.30 lakh||12 months to 60 months|
|Kotak Mahindra Bank||10.25% onwards||Up to Rs.20 lakh||12 months to 60 months|
|Yes Bank||10.99% onwards||Rs.1 lakh – Rs.40 lakh||12 months to 60 months|
|IndusInd Bank||11.00% onwards||Rs.50,000 – Rs.15,00,000||12 months to 60 months|
|Fullerton India||11.99% onwards||Up to Rs.25 lakh||Up to 60 months|
|HDB Financial Services||Up to 36%||Up to Rs.20 lakh||12 months to 60 months|
Follow these steps to apply for a personal loan online:
You will get a OTP on your mobile. Enter it.
Add your name, date of birth and PAN card number.
Add all details regarding your profession.
Approved loan amount and EMI will be displayed on screen.
However, with Navi you would just need to fill in a few basic details to know your loan eligibility. Any Indian citizen above 18 years could apply for a Navi personal loan.
Take a look at the list of documents one needs to furnish during the instant cash personal loan application process for self-employed individuals:
With Navi, you would only need your PAN and Aadhaar number only as primary documents.
When you avail of a personal loan, the lender charges certain charges for processing and disbursing the loan. Here’s a list of fees and charges that you may be required to pay:
A personal loan can help reduce financial burden for a self-employed person. Since there is no restriction on end-usage, you can use the funds to pay off debts to expanding your business and for personal needs. Check your loan eligibility and compare interest rates before you decide to get a personal loan. For a hassle-free process with minimum documentation and loan disbursal in minutes, download the Navi app on Android or iOS now!
Ans: It entirely depends on the applicant’s eligibility. Pre-approved applicants could get loans almost instantly. Check with your lender to know the loan application – disbursal timeline.
Ans: Most lenders offer personal loans to both salaried and self-employed professionals and non-professionals. If you’re self-employed and eligible for a loan, you can too.
Ans: Documents required for availing of a loan vary from lender to lender. For instance, with Navi, you can get a personal loan after completing your KYC with Aadhar and PAN.
Ans: No, personal loans are unsecured loans. You don’t need to provide collateral or security to get a personal loan.
Ans: You can use the loan for several purposes, including funding your business, meeting any emergency requirements like medical expenses and to have additional funds at your disposal, to name a few.
Ans: During personal loan applications, most lenders charge a certain processing fee. This may vary from lender to lender. Other charges post loan disbursal may include loan foreclosure fees. However, Navi doesn’t impose any foreclosure fee in case you decide to prepay your loan before the scheduled tenure.
Ans: While approving a loan amount, lenders consider a borrower’s income that reflects his/her repayment capacity and credit history. Therefore, any default in a borrower’s track record can affect his loan amount eligibility.
Ans: On securing financial instruments such as a personal loan, borrowers can opt for fixed or floating rates of interest as per their requirements. A fixed-rate interest rate does not change over the loan tenure whereas a floating interest rate might fluctuate with changes in the market condition.
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