A personal loan, one of the most popular debt instruments combines the best features of a loan and a credit card. In terms of utilization of funds, these loans help in covering almost all personal needs from one end to the other. Prospective applicants can browse through the eligibility criteria of various banks and Non-Banking Financial Companies (NBFCs) and apply to the one whose criteria they fulfill. These criteria vary depending on whether the applicant is self employed or salaried and also as per the city or town of applying for the loan. In case of most lending institutions, the eligibility criteria of a personal loan for self employed as well as the documentation requirements are quite simple which makes them easy to avail and popular.
One of the most important requirements to avail a personal loan is a high credit score and good repayment history. Based on this score and the history, and the type of employment of the applicant, the cost of borrowing for the loan will vary.
In the section below, we have listed the ways in which a self employed individual can benefit from a personal loan:
Prompt Approval
As mentioned earlier, the eligibility criteria and documentation requirements involved are quite basic and uncomplicated, as a result of which, these loans are approved in minimal time. Here, we are looking at a time period of anything between 1 day to 7 days, depending on the bank or NBFC.
Convenient Utilization of Funds
A personal loan does not really come with restrictions as to how and where the funds can be utilized. It makes them versatile and popular among the self employed as they can avail such a loan to fulfill all types of business needs.
In addition to these benefits, a self employed individual can profit from the low rates of interest charged on these unsecured loans.
The resource provided below discusses the details of the same:
