We often hear of loans being offered to salaried employees which make self-employed people wonder if they have access to similar opportunities. Personal loans do not differentiate between salaried and self-employed individuals as long as you meet the basic personal loan eligibility criteria.

The financial needs of individuals remain the same whether they are salaried or self-employed. Personal loan lenders do not differentiate between the two categories because it is the repayment capacity that is being assessed, not the source of income.

If a self-employed individual needs funds for any purpose be it a purchase, a business expense, an investment, a hospitalisation, a vacation, a house renovation or any other reason, he/she can apply for personal loan.

What is a personal loan?

A personal loan is a short term financing option. It is an unsecured loan that comes without the burden of any collateral. It is a versatile loan that can be used for any purpose which makes it quite popular among the younger generation. 

Am I eligible for a personal loan if I am self-employed?

If you are an Indian citizen or resident over the age of 21 years and have a net monthly income of over Rs 30,000, you are eligible to apply for a personal loan from LoanTap.

How should I proceed?

The process is quite simple. All you need to do is to visit the LoanTap website and fill up an online application form. You will need to upload the following documents –

  • PAN Card
  • Aadhaar Card
  • Proof of the existence of the business
  • Financial statements of the business
  • Bank statements of the business/owner

The LoanTap team will evaluate your application and the documents provided by you. If you have a decent credit score and the team is confident about your repayment capacity based on your documents, your loan application will be approved. Your loan will be credited to your account in 24-36 hours.

What are the situations where a personal loan will help?

A personal loan can be a saviour when faced with short term financial needs. When you are faced with a financial crisis where you are temporarily short of funds, you need a quick, easy and convenient solution to tide over it. 

Working Capital Shortfall

If you need some working capital for your business, taking a personal loan would be convenient to bridge the gap till the cash flow is reestablished.

Investment opportunity

If you come across an investment opportunity that you do not want to miss out on, a personal loan could be a good option to lock in the opportunity. You can reorganize your funds to pay back in full after you have serviced your loan for at least 6 months but you do not need to miss an opportunity.

Medical emergency

In case of a medical emergency, a personal loan is an instant saviour. You can get the loan within 24-36 hours. At LoanTap, you get 3 months of interest-only EMI before the actual EMIs start. This gives you the time to recoup before you start your normal repayments.

Big-ticket purchases

If you need to make any big-ticket purchases, you can use a personal loan to make an upfront payment. You can make the repayments at your convenience. After you service the loan for six months you can make a prepayment to close the loan in case your financial situation improves. You can choose your tenure to optimise the EMI.

These are just a few examples of how a personal loan can be used. You can use the personal loan for any purpose of your choice.

Why is a personal loan so popular?

Personal loans are a very popular financing option because of the following reasons –

  • No collateral is required
  • Very easy processing
  • Minimum paperwork is involved
  • Processing is very quick
  • Interest rates are lower than credit cards
  • No prepayment penalty after six months
  • Flexible repayment options

What is the LoanTap advantage?

LoanTap understands the needs of borrowers and tailors its products to suit requirements. LoanTap offers personal loans in the range of Rs 50,000- Rs 10,00,000 for periods ranging from 6 months to 5 years. Annual interest rates start at 18%. There are no prepayment penalties if you repay the loan after paying your EMIs for the first six months. There are a variety of repayment options to choose from based on your convenience.

LoanTap loans are processed within 24-36 hours from start to finish and involve minimum paperwork. This makes it really convenient for borrowers, especially in an emergency situation.

Personal loans are cheaper than credit cards. Credit cards charge 2-3% per month on the outstanding balance which works out to 24-36% annually. So, before you rush to swipe your plastic, you can check out the possibility of getting a personal loan.

We offer you convenient personal loans with customised repayment plans that can make your loan journey comfortable.

A self-employed person is treated at par with a salaried employee when it comes to personal loans provided the credit score is good and the business is functioning properly. A personal loan gives you the flexibility to tide over temporary financial issues without wiping out your savings.

You can avail of a personal loan for self employed professionals whenever the situation demands it. Do visit the LoanTap website for all details regarding the various loans. Our team will be glad to assist you and answer your queries. In case of an emergency, you cannot beat a personal loan for its ease and speed of processing. Remember, we are just a few clicks away!

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Satyam Kumar is banking industry veteran with enriched experience of more than 20 years. Apart from founding LoanTap and FinTech Association of Consumer Empowerment, he is an avid traveler and holds keen interest in Blogging. He has amassed profound knowledge in FinTech trends, banking, consumer trends, food and mythology which he loves sharing with others.
Satyam kumarSatyam KumarCEO & Co-Founder, LoanTap asset 8 asset 9
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