Lifestyle Magazine

Self Employed? Here Is How You Can Get a Personal Loan?

By Harshil Barot @Harshil_Barot

A personal loan for businessmen can prove to be a good solution when your business faces challenges like a financial crunch and more. However, when it comes to a self employed person applying for such a loan, certain additional aspects do have to be kept in mind.

Personal Loan For Self Employed Professionals

Self Employed? Here Is How You Can Get a Personal Loan?

This is because, many conventional creditors are still apprehensive about lending a large sum of money to the self employed individuals in case they have a slightly unconventional business idea or choose to run a business which would only have seasonal demand. Chalking out a good repayment plan would go a long way in securing the personal loan for self employed .

  • While most jump at the opportunity of getting an easy credit card loan, for a self employed person- (who could be a doctor, an engineer or an artist ) who might need the funds to upgrade his clinic or his office- it would be a more prudent and steady to approach a bank or NBFC. The reason is that proper documentation is required for the purpose, which makes the process more transparent and also often more secure, as proper KYC documents have to be handed in .
  • In case of loans for self employed person, one might approach a lender even if there has been no pre- existing working relationship with him. However, in other kinds of loans, as in credit card loans, one can only apply for the loan if they have a credit card in the first place. So a self employed who might not have a credit card would not be able to avail this kind of a loan, even if he finds this to be an attractive option.
  • On the other hand, for credit card loan, the loan amount is not much. If the credit card limit on a card is Rs 1 lakh out which 25, 000 has already been spent, then one can avail a loan only on the remaining 75,000. For a self employed, who wants to start out on his own and chart a new territory for himself and set up a new office and buy its equipment, the requirement can be much more. Personal loan for self employed usually have a range of Rs 50,000 to Rs 15 lakhs, and sometimes even more, which is good enough to cover most of their requirements.
Self Employed? Here Is How You Can Get a Personal Loan?
  • The interest rate of business loans is mostly in the range of 11 percent and 24% while in the case of credit cards, it is mostly between 12% to 18%. One should rule in other factors like total tenure, income rates, interest paid on insurance and such to determine which loan they should finally avail. The tenure for personal loans, for example, depends on the banks and creditors but in case of credit cards , some are as low as three months.
  • There are differences in Processing Charges of the loans as well. This can range anywhere between 0 to 2.50 percent of the total loan amount. Depending on the amount of the loan, this fee might be big enough to make a significant difference. There are also times when one might be tempted by some private banks with schemes like no processing fee, but there might be hidden charges which one might be wary of.

Approach a financial adviser, if as a self employed, you are in need of a hefty sum as a loan. Bajaj Finserv has some great schemes for personal loans for self employed business and very competitive interest rates.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Big Food Giants Manipulate Public Health Policy in China

    Food Giants Manipulate Public Health Policy China

    Coca-Cola is at it again. As soda sales decline in the United States and Europe, beverage companies look to emerging economies like China for growth. And, it... Read more

    The 15 January 2019 by   Dietdoctor
    DIET & WEIGHT, HEALTH, HEALTHY LIVING, MEDICINE
  • Jewellery for a Precious You

    Jewellery Precious

    Jewellery is always close to a woman’s heart. It completes her look and boost confidence. Considering the changing trends in jewellery fashion, it becomes... Read more

    The 15 January 2019 by   Dr.jenifer Sayyed
    LIFESTYLE
  • Rajshri Productions’ Next Is A Film On Friendship | Hum Chaar | Trailer

    Abhishek Dixit’s debut feature film Hum Chaar is a Bollywood film made under the banner of Rajshri’s film. Hum Chaar is written and directed by Abhishek Dixit. Read more

    The 15 January 2019 by   Themoviean
    ENTERTAINMENT, MOVIES
  • Saint Paul the First Hermit

    Saint Paul First Hermit

    Today is the feast day of Saint Paul the hermit. This is a sweet and delicate Oatmeal Bread topped with rolled oats and naturally sweetened with agave. Saint... Read more

    The 15 January 2019 by   Veronica46
    FOOD & DRINK, RECIPES
  • Irupathiyonnaam Noottaandu | Teaser | Pranav Mohanlal | Arun Gopy

    Arun Gopy’s Irupathiyonnaam Noottaandu is an upcoming Malayalam action-drama feature film starring Pranav Mohanlal and Zaya David in the lead roles. Read more

    The 15 January 2019 by   Themoviean
    ENTERTAINMENT, MOVIES
  • A Year Of Body Positivity

    Year Body Positivity

    Last January, as I sat there on New Years eve all set to make the same old resolutions I've made year after year for as long as I can remember, I realised how... Read more

    The 15 January 2019 by   Sparklesandstretchmarks
    DIARIES, SELF EXPRESSION
  • Garden Bloggers Bloom Day – Jan 2019

    Garden Bloggers Bloom 2019

    Euphorbia rigidaWhen I went out to take the photos for this blog post I was surprised at how much was in flower dotted around the garden. Read more

    The 15 January 2019 by   Patientgardener
    GARDENING, HOME

Magazine