Digitisation has made availing loans from reputed lenders convenient. Leading NBFCs also offer disbursal of loans within 24 hours of approval. However, there are specific terms and conditions involved in the loan sanctioning process. One of the most crucial factors is the borrowers’ income.
Most financial institutions and NBFCs ask for your annual income proof like salary slips and IT return statements. This is to ensure your credit worthiness and repayment capacity.
However, in case of self-employed individuals, they can also avail a personal loan without income proof on the basis of few essential factors. Here is the list of the determining factors which can help you avail a personal loan as a self-employed individual –
Have a high credit score –
Your credit score is a numerical representation of your financial behaviour as a borrower. Credit bureaus consider numerous pointers to generate the credit score of an individual.
CIBIL or Credit Information Bureau (India) Limited is considered as the highest credit rating body in India. Most lenders refer to the CIBIL score of prospective borrowers to consider their creditworthiness.
A high CIBIL score is one of the most vital criteria which a lender will consider in case of a self-employed applicant who is unable to provide a requisite income proof.
Personal loans are unsecured loans which do not require collateral and the score functions as the only security to help them gauge the creditworthiness and the repayment capacity of the borrower in concern.
Include a co-applicant to avail the loan –
If you are not able to provide a valid income proof to avail a personal loan without income proof, you can optionally consider a co-applicant. Jointly applying for a loan with an acquaintance or a family member who has a creditworthy CIBIL report can help you avail an unsecured loan, albeit jointly. However, in such scenarios, you may not be able to acquire as much funds as you require meeting your financial requirements.
Provide all required documents accurately –
Income proof acts as an evident point of guarantee of a prospective borrower’s repayment capacity. An individual with a higher income will obviously find it easier to pay the EMIs than an individual who has a lower income. However, the proof of income is just as vital to validate the same.
There are numerous other documents which are vital to avail a personal loan for self-employed –
Applicants must be between 23 and 55 years of age.
Applicants must own a business with a vintage of at least 3 years.
Applicants must provide business turnover of the previous year audited by a CA.
Such basic documentation acts as proof of basic eligibility pointers. For instance, a less aged individual has a higher income generating capacity. Also, a business owner who can show for business operations of at least 3 years and generates substantial turnover has a high repayment capacity. If you can provide such verifiable documentation, you have a better chance to avail a personal loan without income proof.
Look for pre-approved offers
Opt for lenders such as Bajaj Finserv who offers pre-approved offers with their financial products. A pre-approved offer on a loan is where the borrower is already eligible for a specific loan amount across pre-determined but negotiable terms pending only document submission. Know all about pre-approved personal loans and avail it at the best interest rates available for you in the market.
Leading lenders such as Bajaj Finserv offer personal loans at attractive personal loan interest rates, flexible repayment tenors ranging between 12 and 60 months, as well as against minimal eligibility criteria and documentation requirements.
They also provide pre-approved offers on numerous financial products including personal loans, business loans, home loans, etc. These offers make the process to avail loans simpler and quicker. Submit only some basic details to check your pre-approved offer online.
Use a personal loan calculator to easily calculate your EMIs as per the eligible loan amounts, offered rate of interest and tenor. Meet your current financial goals easily by referring to lenders who offer the most repayment-friendly features.
- Belly Mujinga, a 47-year-old railway ticket office worker, was working for Govia Thameslink Railway