Getting a personal loan as a self-employed individual in India can be slightly challenging, but it is absolutely possible. Many banks and NBFCs now offer personal loans specially designed for self-employed professionals and business owners. In this guide, we explain eligibility, documents required, interest rates, and tips to improve approval chances.
Who Is Considered Self-Employed?
Self-employed individuals include:
- Small business owners
- Shopkeepers and traders
- Freelancers and consultants
- Doctors, CA, architects, and professionals
Income stability and business continuity are key factors for loan approval.
Eligibility Criteria for Self-Employed Personal Loan
Most lenders follow these basic eligibility rules:
- Age: 24 to 65 years
- Business vintage: Minimum 2–3 years
- Stable monthly income
- Good banking history
- CIBIL score: 700 or above preferred
Applicants with strong financial records get better interest rates.
Documents Required for Self-Employed Personal Loan
Self-employed applicants usually need the following documents:
- PAN Card (mandatory)
- Aadhaar Card / Address proof
- Business registration proof
- Last 2–3 years Income Tax Returns (ITR)
- Profit & Loss statement
- Business bank statements (6–12 months)
Some NBFCs may approve loans with limited documentation.
Personal Loan Interest Rates for Self-Employed
Interest rates for self-employed borrowers are slightly higher than salaried applicants.
| Lender Type | Interest Rate Range |
|---|---|
| Banks | 12% – 20% p.a. |
| NBFCs | 14% – 26% p.a. |
| Loan Apps | 20% – 36% p.a. |
Rates depend on income, credit score, and business profile.
Loan Amount & Tenure
- Loan amount: ₹50,000 to ₹20,00,000
- Loan tenure: 1 to 5 years
Higher loan amounts require stronger income proof.
How to Improve Approval Chances
Follow these tips to increase approval probability:
- Maintain regular bank transactions
- File ITR on time
- Keep CIBIL score above 750
- Apply with co-applicant if possible
- Avoid multiple loan applications
Bank vs NBFC: Which Is Better for Self-Employed?
- Banks: Lower interest but strict eligibility
- NBFCs: Faster approval and flexible norms
Self-employed borrowers often find NBFCs more suitable.
Relationship With Homepage Guide
To understand personal loans in detail, read our complete personal loan guide, which covers eligibility, interest rates, EMI calculation, and safe borrowing tips.
FAQs – Self-Employed Personal Loan
Can self-employed people get personal loan easily?
Yes, with stable income and proper documents, approval is possible.
Is ITR mandatory for self-employed personal loan?
In most cases, yes. However, some NBFCs offer loans without ITR.
Can shopkeepers get personal loan?
Yes, shop owners and traders are eligible if business income is stable.
Which lender is best for self-employed?
NBFCs and fintech lenders are generally more flexible than banks.
Disclaimer
EarnPG.com does not provide loans directly. Loan approval and interest rates depend on lender policies and applicant profile.
