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A step-wise guide for a self-employed while applying for a Personal Loan in India

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No matter if a person is salaried or self-employed, a financial crisis can happen to anyone without any prior notice. Personal loans are taken mainly to meet the economic crisis. However, the capital borrowed as a personal loan can be used for different reasons like setting up a business, paying off debts and going for a vacation. People can now opt for a personal loan online apply easily to being salaried or self-employed. There are different banks and financing agencies which actively deal with personal loans in the country.

Guide for the self-employed to apply for a personal loan

When it comes to the application process for the personal loan, the primary procedure is always the same. Even in the case of a personal loan online apply, there are major similarities with the traditional method concerning the process of application.

All leading banks and NBFCs in India grant personal loans to both salaried and independently earning people. For the self-employed people, there are no major differences in the process. Only the self-employed borrowers must mention their occupation in the application form. Apart from it, there are a few business and income-related documents that they need to provide while getting a personal loan. Given below are the detailed guidelines about the process that can help every independent earner to access personal loans:

Considering the need for a personal loan

A borrower should always consider having a valid reason to approach for a personal loan. If the borrowers fail to clarify their monetary needs to the bank executives, the application might be instantly canceled. On the other hand, a clear clarification can lead a borrower to get a personal loan easily. Going for a personal loan online apply makes it even easier.  In the case of a self-employed borrower, there can be certain restrictions on borrowing high principal amounts.

As a borrower, you must always be clear about the desired amount of the personal loan and the reason you are taking it. 

Looking for a lending organization

The second most important thing is that every personal loan borrower should find an outstanding bank or NBFC to take a personal loan. As a self-employed person, it is vital to find an organization that delivers exceptional conveniences to the self-employed borrowers.

Eligibility to get a personal loan

Eligibility is a crucial thing that everyone must check before approaching a lender organization for a personal loan. All the eligibility criteria are generally mentioned in the website of a particular organization. 

The criteria for getting a personal loan might vary from one entity to another. A borrower can face more strict criteria while being self-employed. In general, the minimum income a borrower elevates to Rs. 15,000 a month on being a self-employed person compared to Rs. 12,000 for the salaried people. In some banks, the age criterion can differ for the independent income holders compared to the salaried people.

Determining the principal amount

When a borrower reaches a bank for a personal loan, the primary thing that must be executed is the determination of the principal amount. You should always take the help of the personal loan EMI calculator while finalizing an amount. The lender bank will always look for your monthly income and financial stability while granting you the capital. Credit score, CIBIL score, credit report, and bank statements are considered while determining the principal amount of the personal loan. 

Application form fill up and submission

Once the bank determines the principal amount, you can get the application form and fill it up. This is one of the essential steps that you must complete to get a personal loan. Try to make the application form totally error free. Any errors might lead to the cancellation of the application. The customer executives of the lender organization can always help you. While filling up the digital form for a personal loan online apply, you can use the chat system to ensure the total guidance of the customer executive. 

Document verification

The document verification procedure for personal loans is short as only a few documents are considered by the lenders. As a self-employed borrower, you can expect it to be completed within a couple of days from the submission of the application form. This is entirely done by the lending agency to check if all the provided information is accurate.

Capital Disbursal

The final step of getting a personal loan is the capital disbursement. As a borrower, you should only consider an application process for getting a personal loan to be successful only if the lender transfers the total principal amount to your account. 

Hence, these are a few steps that you will go through as a self-employed borrower of the personal loan. However, to ensure getting the loan quickly, you must produce all necessary business-related documents to the lender.  

 

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