A personal loan is primarily given to an individual, whether a salaried or self-employed borrower, both can
apply for a personal loan. As a personal loan can be used for multiple reasons, it is in great demand for resolving financial issues just in time.
Salaried people get personal loans quickly because of their stable income and good credit scores. A self-employed person may or may not get a personal loan easily depending upon their monthly income and profitability in business.
However, many people opine that it might be difficult for self-employed individuals to get a personal loan because of instability in business that often leads to defaulters. Like any other salaried individual, a self-employed individual can also easily avail of an instant loan at an affordable interest rate with authentic income statements assuring regularity in repayment of the loan. The interest rate may vary from lender to lender.
But there can be some flaws, and getting a personal loan may seem more difficult for self-employed without a solid employment record and ITR
Fortunately, it is possible if you follow specific tips and tricks for a self-employed personal loan.
Let’s have a glance at 7 insightful self-employed personal loan tips for those individuals who are having difficulty in getting a personal loan quickly
Keep your required documents updated
When self-employed individuals apply for a personal loan, more documents are required by the lender for repayment confirmation. The requirements vary from lender to lender. Authentication of required income documents can help self-employed borrowers to get the loan easily.
Improve your credit score if low
Prove your creditworthiness, your credit score should be impressive. If you have a low credit score, you need to build it up before applying for a personal loan. Your credit history is one of the vital factors determining your eligibility for a loan.
Reduce debts
Before taking any loan, try to minimize the existing debt. If you have multiple credit cards and loans, try to reduce them before applying for any new personal loan because lenders are not ready to risk their money if you have more than one credit card and loan.
Co-signer or Guarantor
If you have a low credit score, you can opt for a co-signer or guarantor for loan approval. It is one of the best ways to get a clean chit for approval. So, if you don’t want a guarantor or a co-signer, ensure that you make timely payments.
Secured personal loan
Another significant tip to get a personal loan for self-employed is to apply for a secured loan against a collateral. Keeping your vehicle, property, or gold will help in faster loan approval.
Maintain your finances well
Keep a track record of your month-to-month income and make timely repayments. Maintain your Income tax returns document to demonstrate your creditworthiness to the lender and gain trust for repayment.
Choose the best lender
Always compare and choose the right lender based on your requirement. Choosing the right lender for your circumstances will help in hassle-free loan approval.
However, HeroFinCorp, an instant personal loan app powered by Hero FinCorp, a leading financial services company, equally offers a loan to self-employed and salaried with minimal documentation and eligibility criteria. The loan amount available for borrowing is Rs.50,000 - 1,50,000 on an attractive interest rate.
HeroFinCorp eligibility criteria for self-employed individuals
- You must be in age between 21 – 58 years
- You must earn an income of Rs.15,000 per month
Therefore, keeping in mind the above-mentioned 7 simple, insightful steps, a self-employed person can take a loan from HeroFinCorp instant cash loan app by downloading it from Google Play Store.
