Pros and Cons of an Unsecured Personal Loan for Self-Employed at a Glance - Loan Trivia

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Thursday, 1 November 2018

Pros and Cons of an Unsecured Personal Loan for Self-Employed at a Glance

Salaried or self-employed, life treats them equally. Hence, self-employed individuals are likely to face the same financial problems as that of salaried individuals. However, while salaried individuals have the option to apply for a personal loan and arrange the required cash, doing the same isn’t as easy as it looks for self-employed individuals.
Must Read: Can I Get a Debt Consolidation Loan With Low Credit Score?

This is probably because of the risk-return model followed by the lenders. As salaried individuals have a definite source of income, they qualify for the loan easily. Whereas, self-employed individuals, due to their unpredictable income, are rarely considered for the personal loan. Yet, the same won’t happen again as the Indian financial institutions have finally come up with a fitting solution for self-employed - a personal loan for self employed.

As the name suggests, a personal loan for self-employed is basically a personal financing solution dedicated to self-employed professionals. To understand the loan better, let’s take a look at the pros and cons of the product in detail.

Starting with the Pros:-

Multi-purpose loan: The credit scheme comes with end-usage flexibility. Basically, once the money is transferred into your bank account, you can use it for anything.
Quick disbursal: The loan is approved faster and the money is disbursed right after that.
Flexible repayment plans: The flexi repayment plan makes it easier for the borrower to manage their debts and EMI properly.
Easy-to-qualify criteria: The last but not the least, the eligibility criterions are easy to qualify, making the loan more accessible.
Must Read: Can a Salaried Person Avail Personal Loan Without Income Proof?

Talking about the cons:-

There isn’t much when we say cons of self-employed personal loan, but it requires the applicant to have a very good CIBIL score along with a neat and clean repayment history.

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