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5 Reasons Why Personal Loans are Ideal for Self-Employed

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Personal loans are always an ideal financing option whether it is salaried or self-employed individuals. Self-employed individuals like freelancers do not get the security of fixed income every month. While some months can be excellent, other months can be a financial downtown situation. For self-employed individuals, the financial crisis is a very common thing. When the business profit and earnings completely depend upon the market scenario, fixed obligations are not going anywhere. Therefore, to cope with such a financial crisis, personal loans for self-employed are always ideal options. Here are some of the best reasons which make a personal loan the right choice.

1. Seamless Application Process

The best thing about a personal loan is the seamless and easy application process it has. For self-employed individuals, it is very difficult to visit the bank branch several times for the application process. When you take a personal loan, you can simply apply for a personal loan right from your work within a few seconds only. This is one of the priority reasons why small and medium scale business owners choose a personal loan for convenience and a smooth application process. It simply needs filling up the online application form on the website of the financial institution.

2. Higher Loan Amount

There are various self-employed individuals or freelancers that earned their living from their business. For such individuals, the first thing that comes to mind is uncertainty and irregularity of income. If compared with their salaried friends, there is no security of monthly salary around the year. Some months will be average, some months will be excellent and there will be some months where you will face financial struggles. However, the bills and the fixed obligations remain the same whether you have an excellent month or a financial crisis month. In such a time, you will always need an instant personal loan online. Personal loans do not have any restrictions regarding the loan amount. Self-employed individuals always find it easier to get a higher loan amount from a personal loan. It can vary anything between 50,000 to 60 lacs rupees. It completely depends upon the business owner or the self-employed individuals’ credit eligibility criteria. Therefore, for small or big needs you can always rely on a personal loan.

3. Minimal Documentation

Even for self-employed individuals, gone are the days when you had to carry a bundle of documents to your bank. Now, you no longer have to wait in a queue for a loan officer to verify your documents in person. All you need is identity proof like PAN, Aadhaar, Voter ID, Passport, or Driver’s License,  and income proof documents. Once you upload the scanned copies of these documents, your loan provider will evaluate your eligibility for a personal loan for self-employed. Therefore, you will not have to visit the bank branch several times. You can simply visit the official website or download the mobile application to upload all the documents along with the online application form. Nowadays, many non-banking financial institutions are simply offering a personal loan with the help of a PAN card only. Such a digital and seamless process is actually making self-employed individuals completely rely on a personal loan.

4. Flexible Repayment Tenure

Personal loans come with flexible repayment tenure which the self-employed individual can choose for themselves. Since you are the one paying the monthly installment, the repayment tenure should also be decided by you and not the loan provider. In personal loans, the borrower is eligible to decide their repayment tenure. You can consider your depth of income ratio, income, and fixed obligations before you choose the tenure. Make sure you go for a long-term loan if you are capable of paying a small amount of monthly installment every month. On the other hand, if you do not have existing loans and your income is high, you can finish off the loan in a short term. It completely depends upon the capacity of the loan provider.

5. Quick Loan Disbursal           

Self-employed individuals always find it an emergency or crisis situation to manage instant funds for business requirements. Similar to medical emergencies, a crisis in business or emergency cannot be delayed. Every second in business matters as your potential customers may find your competitors soon. Therefore, in such a scenario you can only rely on a personal loan which disburses the loan amount on the very same day. It only takes a few hours for a personal loan to be dispersed right on your credit account. You get quick access to instant funds which you can use for your business.

Wrapping up

Personal loan for self-employed is taken to manage the financial crisis and emergency in business as well as personal life. It is always feasible to use a personal loan calculator to compare and take an affordable loan.Before you apply with one, make sure you’re going with a reputable lender, it’s always smart to shop around & compare for the offers and low rates. Don’t forget to check for your eligibility criteria, and to ensure your personal loan gets approved.

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