Navigating the financial landscape as a self-employed individual can be a bit like carrying flaming torches in a bicycle. Exciting, but definitely challenging.
You’ve got a brilliant business idea, a killer work ethic, and a noble commitment. But, and there’s always a but, there are times when your business cash flow may not be on your expected lines. That’s where a personal loan for the self-employed comes to save you like a financial superhero.
Why consider it? Well, apart from saving you from cash flow hiccups, a personal loan can be the golden ticket to fund that expansion, purchase new inventory, and even increase your manpower by substantial margin.
Now, paperwork is almost extinct except for a few things, the good news is that getting a personal loan for the self-employed isn’t as daunting as deciphering Morse codes. What’s the secret sauce, you may well ask? Well, it’s all about selecting the right site to apply for personal loan
Fincover is an Online Financial Marketplace Company headquartered in Chennai. In a world where complexity often defines finance, they stand committed to simplifying your financial journey, making it intuitive, accessible, and empowering. Fincover is a one-stop destination for a wide range of loan options – personal loan, home loan, business loans, and other loan types.
If you are self-employed with a steady source of income, you are eligible for a personal loan from most lenders though the documentation differs from salaried borrowers. Lenders expect you to have have a good debt to income ratio (loan commitments expressed as a percentage of your income) and a good credit score (usually 750+ ) to be deemed fit to lend personal loan.
However, don’t worry if your credit score isn’t your strongest area. Some lenders are more forgiving than others. They do understand that life sometimes; you need a little financial boost to hit it out of the park. There are numerous NBFCs in the market that are willing to lend personal loan to the self-employed even with low credit score.
How to Apply for Personal Loan being self-employed at Fincover:
Applying for a personal loan as a self-employed individual typically involves the following steps:
1. Check Eligibility
Eligibility criteria for personal loans for self-employed individuals can vary between lenders. It typically involves a good credit score, length of time your business has been in operation, annual income, profitability of the business, Debt-to-income ratio etc
2. Documents required
Lenders may require documents such as address proof, ID Proof, IT returns, bank statements, proof of business ownership, proof of continuity of business, etc. Ensure you have these documents ready.
3. Check Your Credit Score: A good credit score can enhance your chances of approval and secure favorable terms. Review your credit report and address any discrepancies. You can check your credit score for free at Fincover.
4. Compare Lenders: After getting your KYC verified by submitting the above documents. You will be provided multiple loan quotes from different lenders. Research and compare lenders to find the one offering the terms that best suit your financial needs.
5. Submit Your Application: Complete the application process, providing accurate information about your business, income, and the purpose of the loan.
6. Approval and Disbursement: Once approved, the funds will be disbursed directly to your account, allowing you to start utilizing them for your intended purpose.
So, there you have it – you do not have to postpone your dreams due to lack of funds. Give your business the financial high-five it deserves. With personal loans for self-employed, make those entrepreneurial dreams a reality!