Being self-employed gives you the freedom to work on your own terms, but it can also make managing finances more challenging. Be it running your own business or working as a freelancer, there may come a time when you need extra cash to cover unexpected expenses or invest in your work. In such situations, applying for an instant personal loan can be a convenient solution. Thanks to modern loan apps, getting quick financial assistance is now easier than ever. However, qualifying for a personal loan as a self-employed person requires you to meet certain criteria.
Let us further understand how you can qualify for an instant personal loan as a self-employed person through this comprehensive guide.
Why Choose an Instant Personal Loan?
An instant personal loan app is designed to offer quick access to funds without the hassle of submitting lengthy paperwork or multiple visits to the bank. These loans are unsecured, meaning you don’t need to provide collateral, making them an ideal option for self-employed individuals. Key benefits of such loans include:
Quick Approval and Disbursement
Instant loans are known for quick approvals due to their completely digital application and approval processes. They also ensure that funds are transferred to your account within hours of approval.
Minimal Documentation
Another great benefit is that such apps require basic identification and income proof as documentation. This helps you avoid the hassle of going through all the physical paperwork and submission process.
Flexible Usage
Such loans offer you the flexibility to use the amount for different purposes. You can use the loan for business expenses, medical emergencies, education fees of children or personal needs.
Repayment Flexibility
Yet another significant advantage of personal loans is that they allow you to assess and choose a repayment tenure that fits your financial situation.
Eligibility Criteria for Self-employed Individuals
Now that you know all the benefits these loans offer to self-employed individuals like yourself, you need to know whether or not you are eligible in the first place. While the eligibility requirements may differ for different loan apps, the following are the common criteria:
- Age Limit: Ideally, the basic age requirement for self-employed persons is between 21 and 60 years old.
- Stable Income: You need to demonstrate consistent monthly income from your business or freelance work.
- Bank Account: It is necessary for you to have a valid bank account for loan
- Credit Score: This is a basic criteria for all sorts of borrowers because having a good credit score may increase your chances of approval.
- Business Vintage: Some lenders require your business to have been operational for at least one year.
Documents Required for an Instant Loan
To apply for an instant personal loan through an online loan app, you will need these documents:
- Proof of Identity: Aadhaar card, PAN card, or passport
- Proof of Address: Utility bills, rent agreement, or bank statements
- Income Proof: Bank statements, Income Tax Returns (ITR), or profit and loss statements
- Business Proof: Business registration certificate or GST documents (if applicable)
How to Improve Your Chances of Approval?
If you are worried that your loan application may not get approved, you can follow these tips to improve your chances:
- Maintain a healthy credit score by paying your bills on time and reducing outstanding debts.
- Provide accurate documentation by ensuring that all documents are updated and correctly filled out.
- Show consistent income by submitting bank statements that reflect regular income.
- Opt for a trusted instant personal loan app like True Balance that offers transparent terms and quick approvals.
- Avoid multiple applications, as too many loan applications in a short period can hurt your credit score.
How to Apply for an Instant Personal Loan Using a Loan App?
Applying for a personal loan through a loan app is quite simple:
- Step 1: Download a reliable app like the True Balance loan app from the Google Play Store.
- Step 2: Sign up by registering with your mobile number and email ID.
- Step 3: Fill out the application and enter your personal and financial details as required.
- Step 4: Upload the documents requested by the app digitally.
- Step 5: Submit your application after checking if everything is correct and wait for quick approval.
- Step 6: As and when your application gets approved, the loan amount will be disbursed directly to your bank account.
Way Forward
Securing an instant personal loan as a self-employed individual is now faster and easier with the help of loan apps. Instant loans provide quick access to money with minimal hassle for your various financial needs, be it business expansion, personal needs or unexpected expenses.
To enjoy a smooth loan experience, consider using the True Balance instant personal loan app. With a completely digital application process, interest rates starting at just 2.4% per month, loan amounts up to ₹2 lakh and foreclosure options, True Balance makes financial assistance accessible and stress-free. Get the app today and take the first step towards meeting your financial goals!
