Personal Loan for Self-Employed: Should You Take It?

For years, self-employed professionals and business owners struggled while trying to obtain a loan. Needless to say, the rejection (for a loan) was a little difficult to deal with especially when the professional or business owner lacked the credit eligibility i.e. didn’t have collateral to mortgage, lacked sufficient work experience, and the annual turnover wasn’t enough. However, ever since NBFCs came into existence, the whole scenario changed thanks to their personal loan for self employed in India.

This scheme, as the name suggests, was a personal loan that was specially customized in accordance with the needs of self-employed individuals. Though the icing on the cake part is end-usage flexibility offered along with it. It allows the borrower to use the money for financing different cash needs irrespective of whether they are linked to business or not.

When your business doesn’t have sufficient collateral: Since most business loans are secured in nature, having collateral to a mortgage is an inevitable condition. Thus, taking the secured version is not an option and hence, you can avail the required financial support through the said facility without mortgaging anything.

Now, the important question is whether self-employed individuals should turn to personal loan for business? The answer is yes. Here’s when taking a personal loan for self-employed makes absolute sense.

Your business isn’t eligible for a business loan: Business loan eligibility depends on multiple factors. If any of the eligibility conditions aren’t met, the applicant fails to get the loan. Thus, in such cases, personal loan for self-employed becomes a good option.

Must Read: 5 Essential Tips to Save Money With a Personal Loan