Personal Loan for Self Employed

Benefits/Key Highlights:

1. Tenure ranging between 1 year and 5 years.
2. The application process is paperless.
3. You don't need any guarantor and security.
4. Nil documentation process.
5. Application approved instantly.
6. Amount disbursed on the same day as the day loan is sanctioned.

*Note: For the EMI and repayment calculation, it is assumed that a loan amount of Rs.15 lakh has been availed for a 4-year term at an interest of 15% p.a.

Yes Bank Personal Loan for Self-Employed

Yes Bank offers unsecured personal loans up to Rs.40 lakh at attractive interest rates in just 60 seconds. Listed below are the key highlights of the personal loan for self-employed individuals by Yes Bank:

Benefits of Yes Bank Personal Loan for Self-Employed

1. Customers can choose flexible repayment tenures based on their financial ability.
2. Yes Bank personal loan approval in 60 seconds.
3. Quick disbursal of the loan amount.
4. Personal loan top-up options as well as transfer of existing loans.
5. EMI payments via net banking facilities.

Kotak Mahindra Bank Personal Loan for Self-employed

Offering personal loans at an interest rate starting from 10.99% with flexible tenure options, listed below are some of the key features of the personal loan scheme for self-employed individuals:

Benefits of Kotak Mahindra Bank Personal Loan for self-employed:

1. The easy online application process
2. Minimal documentation required
3. Convenient EMI repayment options
4. Quick disbursal of the loan amount following approval
5. Prepayment option after 12 months from the disbursal of the loan

IndusInd Bank Personal Loan for Self-employed

Benefits/Key Highlights:

1. Self-employed professionals like doctors, chartered accountants, engineers, company secretaries, MBA consultants, and architects and self-employed individuals like directors, sole proprietors, and partners can apply for this loan, provided they are above the age of 25 years.
2. The lender has simplified the personal loan application process, with applicants having to submit minimum documentation when applying for a loan from IndusInd Bank.
3. The lender offers doorstep service.
4. Applicants do not have to have a guarantor to apply for this loan. Applicants also need not submit any collateral.
5. The lender offers a balance transfer option.
6. Speedy disbursal of loans is offered.
7. Pre-payments can be made after 6 EMIs are paid.

*Note: For the EMI and repayment calculation, it is assumed that a loan amount of Rs.5 lakh has been availed for a 3-year term at an interest of 10.49% p.a.

Penalties/Internal Charges:

1. Pre-payment charges: 4% of the outstanding principal
2. Payment dishonour: Rs.450 plus tax
3. Personal loan duplicate statement charge: Rs.250 plus taxes per event
4. SI/ECS/Cheque swapping charges: Rs.500
5. Loan rescheduling or rebooking charges: Rs.1,000 plus taxes per event
6. Loan cancellation charges: Rs.1,000 plus taxes per event
7. Penal charge: Rs.150 per taxes, per EMI delay over 5 days
8. Legal charges: As per actuals
9. Stamp duty: As per the laws of the state

IDBI Bank Personal Loan for Self-Employed

Benefits/Key Highlights:

1. Individuals over the age of 21 years can avail a personal loan from IDBI Bank.
2. All borrowers will be covered under a complimentary personal accident insurance policy.
3. Borrowers who have repaid at least 12 monthly EMIs, without defaulting on these payments, will be eligible to take a top-up loan.
4. Pre-payments are allowed 6 months after the loan amount is disbursed, without the applicant having to pay a pre-payment charge.

*Note: For the EMI and repayment calculation, it is assumed that a loan amount of Rs.5 lakh has been availed for a 3-year term at an interest of 10.60% p.a.

Penalties/Internal Charges:

1. Part Payment: Maximum part-payment that you can avail is up to 10% of the loan amount subject to a minimum of Rs.10,000.

Citibank Personal Loan for Self-Employed

Benefits/Key Highlights:

1. The loan amount will be disbursed to your account in just 48 hours.
2. The lender charges a fixed rate of interest.
3. If you require additional funds, you can submit an application for the same to the lender.

*Note: For the EMI and repayment calculation, it is assumed that a loan amount of Rs.5 lakh has been availed for a 3-year term at an interest of 16.49% p.a.

Penalties/Internal Charges:

1. Late payment charges: Nil
2. Stamp duty: As per the laws of the state

HSBC Personal Loan for Self-Employed

Benefits/Key Highlights:

1. The lender offers loan transfer facility from any other bank in the country.
2. HSBC processes loans quickly and disburses the loan amount into the applicant's account without delay.
3. Individuals who wish to apply for this loan can do so online.
4. Customers of HSBC can apply for personal loans if they reside in Ahmedabad, Chandigarh, Bengaluru, Cochin, Chennai, Coimbatore, Jaipur, Hyderabad, Mumbai, Kolkata, Pune, New Delhi, and Vizag.

*Note: For the EMI and repayment calculation, it is assumed that a loan amount of Rs.5 lakh has been availed for a 3-year term at an interest of 10.15% p.a., with a processing fee of 1%.

Penalties/Internal Charges:

1. Full/Partial payment charges: 2% - 5%
2. Penal interest: 2% above the interest rate applicable on the delayed amount payable.
3. Minimum amount due: 5% of the total amount payable.

HDB Financial Services Personal Loan for Self-Employed

Benefits/Key Highlights:

1. This loan can be availed by self-employed professionals, such as chartered accountants, doctors, company secretaries, and architects, self-employed individuals like partners, directors, and sole proprietors, and self-employed private companies and partnerships.
2. To avail this loan, the applicant has to be over 22 years of age.
3. The lender offers a quick and hassle-free application process and allows online applications.
4. The lender offers doorstep service.

*Note: For the EMI and repayment calculation, it is assumed that a loan amount of Rs.5 lakh has been availed for a 3-year term at an interest of 20% p.a.

Penalties/Internal Charges:

1. ECS/cheque bounce charges: Rs.750
2. Interest on delayed EMI payments: 3% on the overdue EMI amount or the interest amount
3. ECS/PDC swap charges: Rs.750 per swap
4. Statement of account charges: Rs.500
5. Document retrieval charges: Rs.750
6. Additional repayment schedule: Rs.500
7. Loan cancellation charges: Rs.1,000

Eligibility Criteria for Self-Employed Personal Loan

To avail a personal loan, self-employed individuals will need to meet the eligibility criteria listed below:

1. You will have to be at least 22 years of age.
2. At the time of the maturity of the loan, the applicant should not be more than 65 years.
3. The minimum annual income of the individual should be Rs.4.8 lakh.
4. The applicant should have at least 4 years of post-qualification work experience.
5. Self-employed non-professionals should have a minimum turnover of Rs.40 lakh, while self-employed professionals should have a minimum turnover of Rs.15 lakh.
6. Self-employed professionals should have a minimum profit after tax of Rs.2 lakh.
7. The individual's business should have been running for at least 5 years. This condition may be relaxed if the applicant is a doctor.
8. Certain lenders may require applicants to have a relationship with them before applying for a loan.

*Note: The eligibility criteria will vary from lender to lender.

Documents Required for Self-employed Loan

When applying for a personal loan, you will need to submit certain documents along with your loan application. The documents that are commonly requested by banks and financial institutions in the country along with personal loan applications are as follows:

1. Proof of identity: Applicants can submit their driving licence, passport, voters ID, PAN card, etc.
2. Address proof: Applicants can submit their utility bills, ration cards, licence and leave agreement, valid passport, sales tax certificate, etc.
3. Bank statements of the applicant's current account of the last 6 months
4. Proof of qualification (highest professional degree will have to be submitted)
5. Income tax returns of the last 2 years with a computation of income
6. Profession continuity proof
7. Proof of age
8. Address proof of the applicant's office

*Note: This is a generalised list of documents that you may be asked to submit. Your lender may request additional documents, which will have to be submitted for your loan application to be considered.

Features and Benefits of Personal Loan for Self-employed Persons

Listed below are the features of personal loan for self-employed borrowers:

1. Self-employed professionals and self-employed individuals can avail a personal loan from a reputed lender in a hassle-free manner.
2. Competitive interest rates are offered by lenders.
3. Loans are processed quickly.
4. The loan amount can be used for personal or business-related expenditures.
5. Flexible repayment options are offered.
6. No collateral, security, or guarantor is required to avail personal loans.
7. The application process is hassle-free.
8. Transparency is guaranteed by most lenders.
9. Some banks offer additional benefits like personal accident insurance with the loan.

Things to Consider When Applying for a Personal Loan as a Self-Employed Individual

If you are a self-employed individual and are in need of funds, you can apply to a bank or a financial institution for a personal loan. A number of lenders, currently, offer personal loans to both salaried and self-employed individuals. If you are looking to take a personal loan, make sure to consider the following points:

1. Eligibility Criteria: Lenders may have varied eligibility criteria with regard to the income, age, business stability, etc., of the applicant. In order for your application to be considered, you should ensure that you meet the lender's eligibility criteria.
2. Credit Score: Your credit score is one of the primary factors that is taken into consideration by lenders when deciding whether to approve your loan application or not. Since self-employed professionals may not have a steady source of income, the concerned individual's credit score is taken as an indication of their repayment capacity and credit-worthiness.
3. Interest Rate: The interest rate charged for personal loans is not standardised across lenders. Thus, it is in your best interest to compare the interest rates charged by various lenders before availing a personal loan. Make sure to opt for a loan for which the interest rate is not too high, provided that the other terms and conditions of the loan are favourable, as well.
4. Costs Involved: In addition to the interest that is charged on the loan amount, lenders may levy a number of other costs such as the processing fee, pre-payment charges, payment dishonour fee, loan rescheduling charges, penal charges, legal charges, etc. Cumulatively, these charges can increase the cost of your personal loan. Therefore, when comparing various personal loans, make sure to also check the other costs levied by respective lenders.
5. Existing Relationship: Certain lenders may require you to have an existing relationship with them for you to be able to apply for a personal loan. Also, if you have an existing relationship with the lender, it is likely that the lender may charge you a lower interest. Thus, if you have a savings bank account, make sure to check if your bank is willing to offer you more favourable terms than other lenders.
6. Financial Requirements: When it comes to personal loans, it is vital that you don't borrow more than what you require. Also, you shouldn't opt for a loan amount that is below your requirement since you may not be able to apply for another loan soon after the first loan is approved and disbursed. Hence, you should make sure that you carefully assess your financial requirements before opting for a particular loan amount.
7. Repayment Capacity: Given that you may not earn a steady source of income, it is vital that you consider your repayment capacity before applying for a personal loan. The repayment for most personal loans is done through Equated Monthly Installments (EMIs). Thus, you should ensure that you have the required funds to pay the EMIs as per schedule.

How to Apply for a Personal Loan for Self-Employed Individuals?

If you require funds to meet any personal or business requirements, you can avail a personal loan. Self-employed individuals can choose to personal loan through the lender's website, through a third-party financial services website, or by directly visiting the lender's branch.

To apply online, through the lender's website, you will need to first key in certain data and check your eligibility. Post this, you can proceed to apply for a personal loan through the lender's website. Most lenders will have an online application form on their websites, which you can fill up and submit online, after which a representative from the bank or financial institution will contact you.

If you are looking to apply for a loan through a third-party financial services website like BankBazaar.com, you will need to navigate to the respective website, compare various loans that are listed, check your eligibility, and apply for a loan of your choosing online. In this case, all documents can be submitted online, making the transaction completely paperless.

You can also locate the nearest branch of a lender and visit the branch to apply for a loan. If you wish to apply through a branch, you should ensure that you carry copies of the required documents.

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