Self-employed are the individuals who are not salaried and they earn their income by running their own business. Basically they can be divided into 2 categories:
Self-employed professionals: Banks categories doctors, architects, consultants, interior designers, dentists, surgeons practicing from own clinics, chartered accountant, as Self-employed Professionals (SEP)
Self-employed non-professionals: Business which are not categorized under self-employed professionals such as trading manufacturing, or services business enterprises.
Personal Loan Eligibility for Self-employed
Income Tax Report – If you are self-employed Banks and NBFCs will give you a personal loan if you have filed ITR for a minimum of 2 years while some may require you to submit ITRs for a minimum of 3 years because monthly income is evaluated based on submitted Income tax report to determine your repayment capacity. Rate of interest is lower if you have submitted Income Tax Report as per the bank's norms.
Gross Annual Receipts - Gross Annual Receipts is the income earned without subtracting any cost or expenses. Most banks and NBFCs will give loans for doctors and other professionals with min. Gross Annual Receipts of Rs. 5 Lakh. However, few NBFCs and banks will approve an unsecured loan only to self-employed with minimum GAP of Rs. 10 lakh to Rs. 15 lakh.
Years of Work Experience – Work experience is an important factor considered by banks and NBFCs. Lenders typically give Professional loans for CA, CS, doctors, lawyers, and architects with min. work experience of 3 years while some banks may insist on 5 years of work experience as well.
Banking Stability – Lending institutions will study your banking history on your bank statements of a min. of 6 months and also evaluate your average account balance to be sure of your banking stability and capacity to repay the personal loan.
Credit History –The bank will check the CIBIL credit report of an individual, his firm as well as the CIBIL score of joint owners in the business.
Age – Banks will give you a loan if you have a minimum age of 25 years and a maximum of up to 65 years at the time of loan maturity. However, some banks also give loans at the age of 23 years also.
Personal loan EMI Calculator: Personal Loan For Self-employed
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List of Personal Loan Documents Required for Self-employed
Signed application form of the applicant
Passport size photographs of the applicant
Income Tax PAN copy of the applicant
Identity proof – Passport/ Driving License/ Voter ID/ PAN of the applicant
Address proof – Registered rent agreement/ utility bills which are not more than 3 months old/ Passport of the applicant
Income proof – ITR of last 2 to 3 years and 6 months bank statement of the applicant
Business existence proof – Service tax registration/ VAT/ business address proof/incorporation details in case of companies/ partnership deed of the applicant
VAT Returns and GST registration number of the applicant
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