Whether you run a web design company, a photography and videography business, or manage a home-based pickle-making venture, you are part of a huge base of self-employed professionals in India. Nearly one in two Indians are self-employed and according to a statistic, by 2020, 50% of all professionals will switch to freelancing. While these might be positive indicators of the profitability of self-employment, there are financial loopholes in the system that one cannot ignore.
All too often, self-employed professionals come off as financially unprepared and this is owing to business strategies that are devoid of any contingencies to deal with financial crises. In the absence of risk-management methods, one way of getting yourself off the hook and keep working is by taking a loan for self employed professionals. Yes, it’s possible to get a personal loan as a self-employed person, even if you are non-salaried. Here’s how you can go about it.
Meet the required eligibility criteria
Most lenders have simple eligibility criteria that aim to verify your financial stability. Criteria include minimum income, age, business experience and so on. Lenders check these to be sure of your repayment capabilities. For example, when opting for the Personal Loan for Self-Employed, you need to meet the following criteria:
- You need to be 22–55 years of age.
- Your business age should be at least 3 years.
- You need to have filed IT returns for at least the past year.
- You need to have the last year’s turnover audited by a chartered accountant.
- Be flexible and be willing to provide any further documentation that’s requested.
Fortunately, the documents required are minimal and mainly consist of KYC documents, proof of business and financial statements. For instance, for the aforementioned loan you need following documents:
- KYC documents
- Proof of business existence
- Financial documents
- Previous month’s bank statement
- Passport-size photograph
To illustrate, you can apply for a Personal Loan for Self-Employed by visiting your nearest branch or by filling the business loan application form online. Now that you know how to get a loan for self-employed professionals, take a look at clarifications for a few questions that you may have regarding the loan.
Do you need to provide collateral?
With a loan for self-employed professionals you do not need to pledge any collateral. This shortens the application process, saves you any additional anxiety relating to your assets and lets you avail finances in a hassle-free manner.
What can you use the loan for?
The finances can be used for any business venture whether you’re an Android app creator, career consultant, legal advisor or even a digital marketer! One impressive loan to consider for your needs is the Personal Loan for Self-Employed. The Flexi Loan feature offered will help you gain more while paying less. Here, a loan of up to Rs.30 lakh is extended to you at affordable interest rates. However, you do not need to pay interest on the whole amount.
Instead, pay interest only on the amount you have utilised from the total sanction. So if you run an interior design company and need to pay carpenters Rs.10 lakh, simply avail that amount from your loan and keep the rest as a back-up to bridge gaps in your working capital should the need arise. Even if your total sanction is of Rs.20 lakh, you will pay interest only on Rs.10 lakh until you make a second withdrawal.
Bajaj Finserv makes planning finances easy for self-employed professionals as you can also manage your account online and fine-tune your borrowing strategy using tools like the business loan EMI calculator, business loan part-prepayment calculator and the GST calculator. Onboarding is quick and easy, and you can enjoy instant approval by checking your pre-approved business loan offer.
So without further ado, apply for a loan for self-employed professionals. With this tool in your arsenal, you can ensure that a lack of finances doesn’t stop you from giving flight to your business idea.