The era of self-employed is gaining prominence in India with many youths of the country venturing into businesses such as textile, plastic, printing, etc. Since we are living in the fast-changing world of digitization, e-commerce and other digital entrepreneurs are also embracing the challenges and opportunities of the existing times. Amidst all the excitement around in the self-employment space, the new-age entrepreneurs also feel the need to fulfill their working capital requirements.
These entrepreneurs may even want money to meet their personal expenses. Don’t be surprised if they seek funds to buy a dream home just like many of us. Loans for Self-employed are available for them to apply. So if you are self-employed and in search of some credit, you should read this article which enlists information pertaining to the same.
Personal Loans for Self-employed
Personal loans can be granted to self-employed to fulfill purposes such as travel, emergency, vacation, etc. Banks provide personal loans at an interest rate of 11%-25% per annum across India. The maximum time given to repay the loans is not more than 5 years. When it comes to the quantum of finance, most banks provide loans up to ₹15 lakhs, with a few lenders offering as much as ₹40 lakhs. To get the loan processed, banks deduct a processing fee at 1%-2% of the loan amount plus Goods and Services Tax (GST). You can even prepay the loan before the expiry of its original tenure, whenever you have the funds ready to do so. However, you may have to bear a prepayment penalty, calculated at 2%-5% of the outstanding balance on the given date.
What About Business Loans for Self-employed?
Eyes and ears would be more open to see and hear this loan as it forms the base of the business. Self-employed community invariably applies for business loans to serve purposes ranging from working capital needs to finance for exports. Banks extend their support by providing finance up to ₹50 lakh, keeping the interest rates to 12%-18% per annum. You can get a period of 4-5 years to pay off the loan.
How Much Would Home Loans Cost Self-employed?
Self-employed businessmen and professionals can even apply for a home loan to buy a property of their choice. The time is also ripe to buy a home as interest rates have plunged to as low as 8.30% per annum. The average rates, though, range from 8.30%-9% across lenders in India. Self-employed, however, may have to service the loan at a slightly higher interest rate compared to their salaried counterparts. The quantum of finance can be well beyond a crore.
It’s a prerequisite to study the results of an EMI calculator before applying for a loan. The calculator not only computes an amount a borrower must be ready to pay month-on-month but also shows the overall interest repayments to be made from his/her end. The EMI constitutes both principal and interest payable towards a loan. The EMI Calculators, for that matter, are available online. So just use them and see your repayment future.
How Can Self-employed Apply for Loans?
The loan application can be made through either online or offline modes. If you can’t visit the branch to apply, better do it online via desktop or mobile. All you need is to visit the bank’s official website, fill the necessary details and submit your application to the lender, which after getting satisfied with the details, would approve your loan.
Be Quick to Check Loan Status
Your work doesn’t end with a mere application. Yes, you read it right! You need to check the status of your loan, whether it has got a go-ahead or rejection from the lender, by talking to the customer care executive. The loan application can be even left pending due to certain discrepancies. Whatever the case may be, you can check the status without any hassle.
As we usher in the startup era, banks are customizing their loan offers to prop up the business sentiment in India. A self-employed can thus set an ambitious target and look to achieve via loans.