June 23, 2025by Today Finserv0 comments

Can I get a personal loan if I’m self-employed?

Yes, self-employed individuals can get personal loans, but the process differs from salaried applicants. Lenders assess business stability, income proof, and credit history more rigorously for self-employed professionals.

At Today Finserv Consulting India, we help self-employed borrowers navigate loan applications successfully. Here’s everything you need to know.

Personal Loan Eligibility for Self-Employed Individuals

1. Minimum Business Stability

  • Most lenders require 2-3 years of business continuity.
  • Startups may need to explore NBFCs or collateral-based loans.

2. Income Requirements

  • Professionals (Doctors, CAs, etc.): ₹3-5 Lakhs annual income
  • Business Owners: ₹5-10 Lakhs annual turnover (varies by lender)

3. Credit Score Expectation

  • Minimum 650+ (750+ for better rates)

Documents Required for Self-Employed Applicants

✔ Identity & Address Proof (PAN, Aadhaar, Passport)
✔ Business Proof (GST registration, Shop Act License)
✔ Income Proof (2 years ITR, Profit/Loss Statements)
✔ Bank Statements (6-12 months business/personal)
✔ Financial Documents (Balance Sheets, Audit Reports if applicable)

How to Improve Approval Chances?

1. Maintain Healthy Financial Records

  • Clear tax filings and consistent income improve credibility.

2. Reduce Existing Debt Burden

  • Lower credit utilization ratio (<30%) helps.

3. Offer Collateral (If Possible)

  • Secured loans have higher approval rates.

4. Apply Through NBFCs if Rejected by Banks

  • They often have more flexible criteria for self-employed.

FAQs: Personal Loans for Self-Employed

1. Can freelancers get personal loans?

Yes, with 2+ years of stable income and ITR filings.

2. Do lenders check CIBIL score for self-employed loans?

Yes, a 650+ score is typically mandatory.

3. Is the interest rate higher for self-employed borrowers?

Slightly (0.5-2% more) due to perceived risk, unless you have strong financials.

4. Can I get a loan without ITR as a self-employed person?

Very difficult—most lenders require 2 years of ITR.

5. How long does approval take for self-employed applicants?

3-7 working days if documents are complete.

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