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Can a Self-Employed Person get a Personal Loan?

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Personal loans are loans given to an individual going through money crunches. You must apply to the bank, NBFCs, or any other financial institute for the loan. It is used when you are short of money and need it to pay the bills, purchase vehicles, or other personal use. A personal loan is usually given to the salaried person. It isn’t easy to provide loans to a person without collateral, but it becomes easy if you have a fixed income every month.

Personal Loan

Individuals are less likely to get a personal loan if they are self-employed. You can get personal loans when you don’t have a job and are self-employed. Under specific criteria, you can take out personal loans even if you don’t have a fixed income in the form of a salary.

What are the Eligibility Criteria for an Individual to Get a Personal Loan without a Fixed Salary?

Age:

Age is an essential factor considered by banks or any other financial institute. The ideal age for getting a loan is between 20 and 30, but it may differ from bank to bank.

Continuity of the Business:

To avail yourself of a personal loan, you must have business continuity. The banks don’t keep collateral for personal loans, so it’s risky to give the loan to someone who doesn’t have a steady business. The business should be at least 2 or 3 years old and have a good flow of funds. Only then can you get a personal loan.

A Healthy Credit Score:

You need to have a good CIBIL report. It would help to have the financial discipline to pay your bills on time. This includes your credit card bills and the EMI of your loans. Doing this will assure the bank or financial institute that giving you a personal loan is safe. Your credit score should be between 700 to 900.

Here are Different Ways for a Self-Employed Individual to get Personal Loans:

Personal Loans for Online Apply on Websites of the Banks or Financial Institutions:

You can obtain a lot of information on the bank’s official website. Many banks provide detailed information about their services online. You can understand the loan procedure, all the terms and conditions, and the remaining formalities on the website. You can even contact the respective person for an online personal loan application.

You Can Now Apply for Loans through Mobile Apps:

Banks and financial institutes now have online application facilities. You can now apply for personal loans on the mobile app and avail yourself of the personal loan. You can quickly get the loans online. Going to the bank and applying for the loan is no hassle. You can do it from your home or office in less time.

The Bottom Line:

Personal loans are mostly given to salaried employees with fixed monthly incomes. But it’s a myth that self-employed persons cannot apply for loans. They can do it under specific criteria. You can use a personal loan calculator to check how much loan you will need. Check out Finserv MARKETS for more.

Source:

https://udaipurkiran.com/can-a-self-employed-person-get-a-personal-loan/

Geneva A. Crawford
Twitter nerd. Coffee junkie. Prone to fits of apathy. Professional beer geek. Spent several years buying and selling magma in Miami, FL. Spent a year lecturing about psoriasis in Las Vegas, NV. Managed a small team writing about circus clowns in Las Vegas, NV. Garnered an industry award while writing about lint in the financial sector. Spoke at an international conference about getting my feet wet with dust in Libya. Spoke at an international conference about researching rocking horses in Bethesda, MD.