Hello,

Guest!

Personal Loans for Self-employed Individuals with No Income Proof

Updated on: 16 Jan 2024 // 4 min read // Personal Loans
Author :(524 posts)
image

The unprecedented popularity of Personal Loans can easily be attributed to their quick availability as well as the fact that the use of the disbursed funds is not restricted.  The loan amount can be used as per the borrower’s discretion whether it is for meeting the expenses of a wedding, a child’s education, medical emergencies, starting up a business, home renovations, business expansion or vacations, amongst many others. This flexibility is rarely offered with any other type of credit.

Yet another aspect that makes personal loans so attractive is that these loans are unsecured and don’t need any collateral. As advantageous as this fact is, it can prove to undermine the probability of loan approval for those individuals who do not have an income proof.  Since lenders do not have any collateral to fall back on in case of defaults, they are stringent about the borrowers having a good credit history, as well as a proof of income to prove their willingness and ability to repay the loan, in time.

BankInterest RateTenureEMI (Per lakhs)Disbursed
HDFC Personal Loan10.75%5 YearsRs. 2,149Instant Disbursed only for HDFC Customer
ICICI Personal Loan10.80%7 YearsRs. 1,6863 to 4 days
SBI Personal Loan11.15%6 YearsRs. 2,1805 to 7 days
PNB Personal Loan11.40%5 YearsRs. 2,1945 to 7 days
Bajaj Finserv Personal Loan11%7 YearsRs. 1,71224 Hours
Tata Capital Personal Loan10.99%5 YearsRs. 2,1745 to 7 days
Indiabulls Personal Loan13.99%2 YearsRs. 4,80124 Hours
Yes Bank Personal Loan10.99%5 YearsRs. 2,1745 to 7 days

Eligibility Criteria for Personal Loan for Self-Employed

In a vast majority of cases, banks offer personal loans to self-employed individuals who meet all of the below-mentioned criteria:

  • The nationality of the borrower must be Indian.
  • The borrower should be between 21 and 55 years of age at the time of applying for the loan.
  • The age of the borrower should be less than 65 years at the time of maturity of the loan.
  • The borrower must be in the current business for a minimum of 3 years.
  • The borrower must be able to furnish proof of income in the form of Bank Statements, Profit and Loss Statements as well as Income Tax Returns.
  • The annual turnover of the business must be Rs. 1 Lakh or above.

Personal Loan for Self-Employed with No Income Proof

As is evident from the aforementioned eligibility criteria, it is more than essential for a business owner to offer proof of income in order for the lender to believe in their capacity to repay the loan efficiently. However, even if you are unable to furnish such proof, you need not get disappointed. There are numerous ways in which you can avail the requisite funds.

If you happen to be on the lookout for personal Loan with no income proof, there are two lenders who may come to your rescue. These include:

1. HDFC Bank

In order to avail HDFC Personal Loan as a self-employed individual, you will need a current account with the bank, in addition to the proof of the existence of your business for a minimum of 3 years.

2. Fullerton India 

This financial service provider offers Personal Loan for Self-Employed individuals with a current account as well as three years of Income Tax Returns.

Apart from these institutions, yet another way to avail a Personal Loan as a business owner with no income proof is to ask a friend, family member, or business associate, to co-sign for the loan. In this case, it is essential for the co-applicant to furnish proof of income, while also having an acceptable credit score.

If you wish, you can also opt for a secured Personal Loan, wherein you can offer any asset such as property, shares, bond or equity as collateral. In this case, the loan amount you can avail is equal to the market value of your collateral.

Then again, you can always opt for a Gold Loan, wherein you can avail the needed funds by offering some gold jewellery as collateral. This is especially helpful when you do not have a good credit score, along with being unable to produce proof of income.

We hope that you now have a fair idea of the various ways in which you can opt for the much desired Personal Loan, as a self-employed individual, whether you are a business owner or professional, without offering any proof of income. So, what are you waiting for? Simply analyse which of the suggested alternatives best suit your needs, and apply for the loan accordingly. After all, your business or personal needs shouldn’t have to wait!