What is personal loan? Make Yourself Educate of a personal loan

what is personal loan

Being a self-employed person, you may often hear that lender offer personal loans to salaried employees with less paperwork, hassle-free funding. It generally makes self-employed individuals wonder if they can obtain the same offer with facilities and similar opportunities. In general, a personal loan never differentiates between self-employed and salaried applicants as far as you match the basic eligibility criteria for the personal loan.

However, before you make yourself ready to apply for the loan, you must understand – what is personal loan?

The financial requirements for every individual are almost the same, no matter they are self-employed or salaried employees.

Personal loan lenders eventually do not discriminate between both of the categories since the repayment capacity is the prime factor for a loan, not the source of income.

If you are a self-employed person and you need some funds for any purpose, whether it’s business, wedding, medical expense, gadget purchase, investment, house renovation, vacation, or others – you can apply for the loan.

What is personal loan?

A personal loan is an instant and short-term financing option, which comes in unsecured loan nature without the burden of any collateral. A personal loan is a versatile funding option that one can use for any purpose, making it a bit popular among the younger generation as well as the average household.

Eligibility for the personal loan for a self-employed individual

Anyone with Indian citizenship or Indian residential proof can avail of a personal loan. However, the applicant must be over 21 years. Besides, the applicant should have a flaw of income and net monthly earnings of over Rs 30,000 to become eligible to apply for the personal loan.

What are the procedures of a Personal loan?

The method to appeal for a personal loan is considerably effortless. You can visit and inquire about your loan eligibility on the lender’s website prior to applying for the loan and directly fill the loan application up on the website online. Aside, you also need to upload the latter documents —

  • Voter card
  • Aadhar card
  • PAN Card
  • Residential proof
  • Financial or current income proof from your business
  • Bank statement of your business account
  • Your current business proofs

The lender team that you choose will evaluate your application form along with the documents that you provided. Besides, if you have a decent CIBIL score, it plays a crucial role. Also, if the lender company finds you pretty confident that you will pay off the entire amount within a designed time period, they will approve your application. The granted loan amount will be credited directly to your bank account within 24-36 hours.

Situations to consider personal loans:

Whenever you go through a financial crunch and are in need of solid financial support, a personal loan can be a savior. It has your back in short-term financial needs. No matter you are in immediate financial needs, short-term fund crisis or temporary needs of the funds – a personal loan is always a convenient and easy solution to tide over it.

  • Working Capital Shortfall – Business is one of the most demanding purposes people need adequate funds for. To help your business grow and stand out, considering a personal loan can be undoubtedly convenient to bridge the gap until you re-establish the cash flow.
  • Medical emergency – Medical emergency can emerge in our life any moment. A personal loan can instantly save you from digging into your savings and shield you from becoming bankrupt. While emergency fund, the lender shortly provides the money that gets reflected in your bank account within 24-36 hours.
  • Investment opportunity – If you do not wish to miss any investment opportunity, getting a personal loan can be an ideal option for you to lock the chance. It gives you enough time to reorganize your funds repay them intact after servicing the loan amount for at least 6months.
  • Big-ticket purchases – Sometimes, you may require cash for big-ticket purchases. In that case, a personal loan can be beneficial for you to make an upfront payment. Besides, you can repay the amount at your convenience.

What makes a personal loan so popular?

Amount several types of financial options, a personal loan is the most instant, beneficial and convenient one due to the following reasons –

  • Flexible repayment options
  • Swift processing
  • No collateral needed
  • Effortless processing
  • Minimum paperwork
  • Lower interest rates compared to credit cards
  • After six months no penalty

Summing Up:

We hope now you understand what is personal loan. You can avail of this loan as being self-employed professional as well whenever the situation demands it. You just have to visit the online website of your lender and enquire about the terms and conditions. Plus, check whether you meet their eligibility criteria or not. Your personal loan approval is few clicks away!