Loans for Self-Employed Up for Grabs at Bank Desk

9 min read

The definition of a self-employed is vast in scope, as the concerned individual can either be a businessman or a healthcare professional running a clinic under his name. And even the freelancers, which you hear working from home, can be classified as a self-employed. Like the salaried, even self-employed people want loans to fulfill their purposes.

If you think self-employed can only receive a personal loan, you are in a myth. Banks offer different loans for self-employed to meet their requirements. From an unsecured loan to a secured loan, a self-employed can receive all the loans provided he/she is eligible for those. Let’s check out the loans that a self-employed can get at banks.

Loan
Loan

Personal Loan

A personal loan is the most popular choice of debt among the self-employed who apply for the same to serve their personal needs. There are lenders like ICICI, HDFC that accept personal loan applications for self-employed.

Documents Required for Personal Loan

You need to be ready with a list of documents shown below.

  • Identity Proof – Passport/Aadhaar Card/PAN Card/Voter ID/Driving License
  • Residence Proof – Aadhaar Card/Passport/Utility Bill/Allotment Letter/Voter ID
  • Age Proof – Passport/Birth Certificate
  • Income Proof – Latest income tax return (ITR) with income computation, CA-certified balance sheet and profit & loss account for the last 2 years
  • Bank statement for the last 3 months or last 6 months bank passbook
  • Duly signed an application form
  • Passport size photographs

Personal Loans for Self-employed with No Proof of Income

There can be many self-employed not having a proof the money they earn. While the freelancers may find hard to evidence their income as the bank statement would most probably read as a bulk transfer of XXX amount, a self-employed businessman, particularly those running small Kirana shops, may not keep records of the bucks he/she earns. It’s all possible, right? You would ask me, will they get a personal loan as the documents stated above also include those supporting the existence of income? They will, much to your delight if you are self-employed seeking a personal loan. But having said that, the personal loan would be offered on a collateral basis. Means, a self-employed would have to mortgage a security having a value at par with the loan amount, in case he/she does not have any income proof.

Home Loan

Yes, home loans beckon for eligible self-employed. With this loan, they can buy a home of their choice. In fact, every financial institution has a home loan for self-employed. Home loans can be financed to self-employed at 75%-90% of the property cost. The interest rates on such loans range from 8.35%-9% per annum. So, whatever the property a self-employed may search for, he can apply for a loan at a lender, which will then send a team to evaluate the possession in question. The team will prepare and submit a technical report to assess the value of the property. A self-employed can then get a loan at about 75%-90% of the value as assessed.

Home Loan Documents

A self-employed seeking a home loan? Do submit the following documents for a smooth approval.

  • Identity Proof – Passport/Aadhaar Card/PAN Card/Voter ID/Driving License
  • Residence Proof – Aadhaar Card/Passport/Utility Bill/Allotment Letter/Voter ID
  • Age Proof – Passport/Birth Certificate
  • Income Proof – Latest income tax return (ITR) with income computation, CA-certified balance sheet and profit & loss account for the last 2 years
  • Bank statement for the last 3 months or last 6 months bank passbook
  • Relevant property documents such as allotment letter, property chain, etc
  • Duly signed an application form
  • Passport size photographs

Car Loan

Enjoying a long drive with families and friends remain on top of the wishlist and a self-employed is no exception in this regard. You can thus get a car loan to buy both the brand new and those on the road for up to 3-5 years. For a new car, you can get a loan of up to 85%-90% of the on-road price of the vehicle. On the other hand, a finance equivalent to 60%-80% of the car value can be given to buy the used vehicle.

Documents Required to Apply for a Car Loan

Submit the following documents to get a nod for a car loan and drive the 4-wheeler with zest.

  • Identity Proof – Passport/Aadhaar Card/PAN Card/Voter ID/Driving License
  • Residence Proof – Aadhaar Card/Passport/Utility Bill/Allotment Letter/Voter ID
  • Age Proof – Passport/Birth Certificate
  • Income Proof – Latest income tax return (ITR) with income computation, CA-certified balance sheet and profit & loss account for the last 2 years
  • Bank statement for the last 3 months or last 6 months bank passbook
  • Relevant property documents such as allotment letter, property chain, etc
  • Duly signed an application form
  • Passport size photographs

Check Also

 A Guide to Buy Massachusetts Homeowners Insurance

The rate of homeownership in Massachusetts is nearly 62%, and it was ranked in the top ten…