A personal loan is the quickest and most convenient way to cater to financial needs. The top Indian bank assures a 100% digitised application process. This eliminates the need for human interaction or hefty physical paperwork. It is quite a viable product in terms of tenure, EMIs and loan amount. You can pick and choose according to your payback capabilities. There are no restrictions on the end usage. Use the funds for home makeovers, planning a wedding or a dream vacation, buying a car and ticking off medical expenses. You can enjoy amazing perks and benefits like a top facility or a balance transfer.
Every self-employed individual must check a few factors before opting for a personal loan. It will help you maximise the product while making an informed choice. Here’s a look.
Eligibility Criteria
A reputed Indian bank requires you to fulfil a few basic qualifications. For example:
- The business should be in existence for a minimum period of 3 years.
- The minimum age must be 25 years.
- The maximum age should be 65 years at the time of loan maturity.
Ticking these off can increase the chances of qualifying for the loan.
Credit Score
The CIBIL score usually ranges anywhere between 300 and 900. A score of 650 and above is considered to be a good idea to apply for a loan. There are simple ways to boost your credit profile. So, repay your credit card dues on time, keep checking the credit card, limit your credit utilisation and opt for different credit cards. These will further improve your score and instil a sense of confidence in the lender. You come across as a borrower with sound creditworthiness and might be able to get a higher personal loan amount.
Documents Needed
Both self-employed and salaried individuals have a few common documents. For example, you will have to arrange for a PAN Card or Form 60, identity proof like a valid passport or Aadhaar card and address proof like registered sales deed, latest bank statements, utility bills or rent agreement. A few specific documents for self-employed people would be banking and income proof, balance transfer (repayment schedule), ownership proof like the latest water, electricity and maintenance bill and business proof like the municipal tax bill, gram panchayat certificate or GST certificate. Present genuine documents to boost your chance of getting the desired personal loan for self-employed.
Monthly EMI
Make the best use of an online loan calculator to arrive at the EMI. Slide the Amount, Period and Interest variables sliders to experiment with different amounts. Use it as many times as you wish to before you can fix a pocket-friendly EMI suitable as per your financial abilities. It is a free, accurate and easy online tool which generates results within split seconds. The calculator saves you from manual errors and reduces the tedious job of using a mathematical formula to figure out the monthly payments. Simply visit your bank’s website to get started.
The best personal loan is not secured by any collateral. So, you do not have to pledge your home or car to obtain the funds. But make sure to tick the above-mentioned checkboxes to ensure a seamless borrowing experience.
