Keywords: personal loan for self employed, personal loans for self employed with no proof of income, personal loan for businessman, personal loan for freelancers
When you’re working as a self employed individual, there are rarely specific dates you receive income due to clients not paying on time and busy periods. This means you’ll have periods of no income and will therefore need a personal loan as a self employed professional. Whilst many are turning to a personal loan app or an instant loan online in India for a fast solution, it’s key to ensure you pick the best option.
As you’re self employed, lenders have different requirements and knowing what to look out for can save you time, money and hassle.
What Are The Key features to look out for in a self employed personal loan:
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Flexible repayment period:
A long-term loan will give you lower monthly EMIs, but overall you will pay more in interest. A short-term loan will be cheaper overall; however, your income must be more regular. Ensure the loan offers a variety of terms – ideally between 6-60 months.
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Transparent fees:
Ensure you know what the overall costs are. Whilst a personal loan for businessmen may have a great interest rate, you should factor in the processing fees and prepayment fees. Instant loans can still have fees even if they offer a low interest rate. Ensure you know how much you’ll be repaying overall in rupees.
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Realistic criteria:
Ensure you know the minimum income, credit score and age requirements before applying for any online loans. Applying with a lender you won’t qualify with will create more credit searches.
Can I Get A Loan With No Income Proof?
Usually, when searching for a personal loan for self employed with no income proof, it usually refers to no salary slips. Even with instant cash loans, there will be some verification. Just be wary of anyone claiming they can approve your application with no checks.
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Evidence to provide:
You can provide 6-12 months of bank statements, ITRs, GST returns and/or invoices to show a pattern. Often, digital verification will be used.
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Credit score:
Your credit score indicates how likely you are to repay your loan. This becomes more important when you don’t have payslips. Many lenders will require a score of around 650+. Always read the criteria carefully.
Are self employed personal loans different to those for business owners?
Yes, it is different, but only a little.
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Freelance/Consultants:
Personal loans for freelancers are usually based on project based credits. Lenders may average your deposits over several months. Clean invoices and statements will help more than a nice profile.
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Shop owners/Traders:
Personal loans for businessmen may be based on your turnover, GST returns and/or ITRs. Ensure your personal and business finances are kept separate. Unsecured personal loans are ideal for short-term use; however, if you’re expanding your business significantly, you may want to look into a specific business loan.
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Seasonal income:
Ensure your EMIs can be covered during your lean months. Even if you need an instant loan quickly, try to ensure you can cover the slower periods.
What To Look Out For in a Personal Loan App?
Make sure you’re not missing out on clarity due to convenience.
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Quick:
Read carefully. There are tons of results with phrases such as “fastest instant loan app”. Just because they have a high ranking doesn’t mean they’re quick. Ensure the lender clearly states how quickly they can approve and disburse your loan. Some lenders will have different times depending on the partner.
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Simple to apply for:
A great online loan will ask for only what they need. They will also explain each step and tell you what the fees are. Look for digital KYC and no documents.
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Urgent:
Whilst it can seem like instant cash loans would be a good option when you need a quick loan, just because they can say yes quickly doesn’t mean they’re a smart choice. Read the criteria carefully, and an online instant loan can be a great option. Only borrow what you need and look into more than one option for an instant loan online in India.
Conclusion
Look for clarity. Ensure you know what you’re earning, how much you can afford to repay and what you will actually be paying. Don’t look at a top 10 instant loan app in India or look for the quickest instant loan app. Instead, look for clear criteria.
The Prefr personal loan app (loan app) allows you to check if you qualify in minutes. Applications will be instantly approved if you qualify, and there are no documents required. Loans can be for 6-60 months; interest rates will be between 18-30% p.a. depending on your profile. Disbursement usually takes around 30 minutes; however, it can take up to 24 hours depending on the partner. You’ll need to have a monthly income of at least ₹15,000, a credit score of 650+ and be aged 21-55. Find out more on the home page. Apply today on our personal loan app.
