Personal loans are loans given to an individual who is going through money crunches. You have to 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 for 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.
It’s less likely for an individual 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 avail of 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 is an essential factor that is taken into consideration by banks or any other financial institute. The ideal age for getting a loan is between 20-30. But it may differ from bank to bank.
Continuity of the Business:
To avail of the personal loan, you need to have business continuity. For personal loans, the banks don’t keep collateral, 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 should 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 if you had the financial discipline of paying back your bills on time. This includes your credit card bills and the EMI of your loans. Doing this will assure the bank or the financial institute that it’s safe to give you a personal loan. 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 official website of the banks. Many banks provide detailed information about their services online. You can understand the procedure of the loan, all the terms and conditions, and the remaining formalities on the website itself. You can even get in touch with the respective person for the personal loan online 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 the personal loan. You can quickly get the loans online. There’s no hassle of going to the bank and applying for the loan. You can do it from the comfort of your home or office in less time.
The Bottom Line:
Personal loans are mostly given to salaried employees who have fixed incomes every month. 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.