How to Avail a Personal Loan if You Are Self-Employed?

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A personal loan can prove to be immensely helpful, especially in situations such as these when the world is battling a global pandemic. If you are a self-employed professional and you have been looking for a personal loan for some time now, this post is for you as we will be discussing a step by step through which you can avail an instant personal loan from a financial institution or even a non-banking financial institution.

Features and Benefits of a Personal Loan

Before we dive into the intricacies of a personal loan, let us take a quick look at some of its most important features and benefits.

  1. Instant Eligibility Check

Most lenders in India now offer an instant eligibility check through which you can instantly get to know if you are eligible to apply for a personal loan or not. Modern NBFC lenders like Money View, make use of advanced fintech technology to check your application for eligibility and leverage the power of readily available credit scores to ensure that you meet all the criteria set out for the loan.

Since the process is entirely digital, you will get to know your eligibility hardly in a matter of minutes and thus will be able to swiftly plan your finances for the way forward.

  1. Completely Paperless

Gone are the days when you needed to physically submit your loan application and accompanying documents at either the lender’s or their agent’s office. These days, most personal loan lenders have a completely online application process, meaning all you need to do is either visit the lender’s official website or download their smartphone application and upload your documents digitally to the lender’s secure servers.

Not only does a completely paperless process save you an immense amount of time, but it also gives you the freedom to fill out the application from anywhere, thus rendering an increased flexibility to the process.

  1. Competitive Rate of Interest

Although the concept of a personal loan is not entirely new, one of the most distinct features it holds is the competitive rates of interest it arrives with. Since the industry is still developing and a lot many lenders these days specialize in this service, the competition thus proves to be an advantage for the average borrower as they get a highly competitive rate of interest.

Not only this, when compared to its predecessor’s, personal loans are cheaper on the pocket to a great extent, thus adding to its flair.

  1. Flexible Tenures

If you have ever opted for a traditional loan in India, you are well aware of the fact that in most instances, they arrive with stringent repayment schedules, which allow for no flexibility and freedom to the borrower.  While this measure is taken to reduce the risk of the lender and to ensure that no defaults occur, as a borrower, it impairs your ability to better plan your personal finances.

On the other hand, most personal loans in India arrive with a flexible repayment schedule starting all the way from 12 months to 60 months. Along with this, there are lenders in the industry who allow you to customize both the EMI amount you are deemed to pay every month along with the date of payment, which allows for a greater degree of freedom and flexibility on your part as a borrower.

  1. Easy Tracking

A common problem among most borrowers of traditional loans is the fact that they often cannot track their repayments and the balance they still owe to the lender due to the fact that there is very little digital footprint of the loan.

On the other hand, since most modern lenders heavily rely on fintech technology to track their loan disbursements, all of the information you will ever require on your loan is made readily available, such that not only can you track the number of payments you have made till date but also the balance you still owe to the lender, along with the rate of interest being charged (in the case of a floating system). The companion app readily makes all this data available to you at any moment such that you can better plan your finances and prepare for the road ahead.

  1. Instant Disbursement

Last but not least, most personal loan lenders offer the feature of instant disbursement, meaning that you can get the loan amount in your bank account in less than 48 hours post approval of your loan application.

Not only does an instant disbursement guarantee that you will have the money when you need it the most, but it will also ensure that you don’t need to spend countless hours following up with the lender regarding the status of your loan application.

  1. Eligibility Criteria

The eligibility criteria for a personal loan might vary to a few degrees between lenders; however, the underlying constituents remain the same.

  • A credit score of above 6500 on a scale of 900.
  • Above the legal age of 18 or 23.
  • Minimum monthly income of ₹15,000.
  • eKYC documents (Aadhar Card and PAN Card) are available.
  • You can produce an income certificate.

How to Avail a Personal Loan?

Now that you know of all the details of a personal loan along with the pointers that make it unique, all that remains for you to do is to secure one for yourself. Mentioned below are the most significant steps you will need to follow.

  • Search for “instant personal loan in India” and go through all the personal loan offers presented to you. During this step, be mindful of the interest rate being charged as well as the tenure being offered.
  • Once the above step is complete, proceed to make a choice on the lender who suits your requirements the best.
  • Once you have chosen the lender, download their application to your smartphone or visit their official website to initiate the application process.
  • Keep your documentation (both eKYC and income information) handy, as you will be required to share these with the lender in the upcoming steps.
  • Upload all your documents, submit your application, choose the loan amount you desire along with other finer details, and complete the process.
  • Once your application is submitted, the lender will take a few hours to verify the information, and upon approval, you will receive the money in your account in less than 48 hours.

Conclusion:

Getting a personal loan for self-employed or salaried or has become easier than ever before, thanks to the number of lenders who now specialize in rendering this service. So, if you are in India, wait no more and follow the steps outlined above to secure the personal loan you require.