Non-salaried individuals include retired people, self-employed people, business professionals, freelancers and other persons who are not employed by any firm.
When it comes to availing Personal Loans, non-salaried people often face difficulties in arranging funds to fulfill their needs. Does that mean that they cannot get a Personal Loan? Well, that’s not the case.
There are many banks, non-banking financial companies (NBFCs) and other financial institutions that offer Personal Loans to non-salaried people basis some criteria and norms.
There are many leading financial institutions that are well-known for offering Personal Loans to the non-salaried persons in a hassle-free manner. SBI Personal Loan is one such product that can be availed by non-salaried individuals for funding any personal expenses such as travel, vacation, education, medical and so on.
The Process of Availing a Personal Loan for a Non-Salaried Person
For availing a Personal Loan, the following different easy modes are available through which you can fill the application form and avail the loan.
Online: You can directly apply online for the loan. You simply need to visit the official website of a bank or an online lending marketplace and fill in the required details. In just a few clicks your application will be completed. You can also apply through Internet Banking by logging in on your bank’s netbanking account.
Offline: Visit any nearby branch of the bank where you want to apply for a Personal Loan with the copies of all essential documents. Fill in the application and submit the required documents at the bank to avail the loan.
Through Call: Get in touch with the customer care executives of the preferred bank or online lending platforms to avail the loan.
Personal Loan for Non-Salaried Person
If a non-salaried person has income proof, a good CIBIL score (of 700 or above) and other required documents, getting a Personal Loan is an easy journey. Before offering a loan to the borrower, the lenders check all the documents including the income proof. Hence, submitting all the essential documents can help a non-salaried individual to get the loan without any difficulty.
Non-salaried borrowers usually own the self-owned business which is by themselves. They are the individual owner of the business. Many people think that it is not easy for self-employed persons to get a Personal Loan due to the fact that they don’t have a regular and reliable source of income, but it is not the case. Just like salaried employees, a non-salaried person can also easily avail a Personal Loan from SBI Bank or other lenders if they meet the eligibility criteria of the lender.
The common documents required by most of the lenders are mentioned below:
- Duly filled and signed loan application
- Recent passport size photographs
- Identity Proof: Passport/ Voter ID/ PAN Card/ Driving License/ Employee ID Card/ Any other valid proof accepted by the lender
- Address Proof: Telephone Bill/ Electricity Bill/ Passport/ Aadhaar Card/ Registered rent agreement/ Any other valid proof accepted by the lender
- PAN Card
- Income Proof: Last 3 years’ ITR (Income tax return) along with computation of income, Balance Sheet of last 2-3 years, and profit & loss statement certified by a CA
- Bank statement: Bank statements/passbook of last 3 months
- Business existence proof: Service tax registration/ VAT/ business address proof/ partnership deed
Personal Loan Eligibility Criteria for Non-Salaried Individuals:
The eligibility criteria for a Personal Loan differ from bank to bank. The general eligibility factors required for Personal Loan approval are as follows:
- The applicant must be an Indian resident.
- The minimum age of the applicant must be 25 years during the time of application
- The maximum age of the applicant must be 65 years at the time of loan maturity.
- The applicant must have a regular source of income.
- The minimum profit of the applicant must be as per the lender’s requirements.
- The minimum work experience in the current business must be least 3 years.
Benefits of Personal Loan for Non-Salaried Applicants
- Competitive rate of interest
- No collateral required
- Transparency in loan application and disbursal
- Quick processing of the loan
- The sanctioned loan amount can be repaid in easy equated monthly instalments (EMIs)
- Flexible repayment tenure (usually up to 5 years)
- The loan amount can be used for any personal or professional expenses
Other Alternatives If you do not meet the above Personal Loan Eligibility Criteria, you can opt for any of the following financial alternatives:
Loan Against Property: If you own any residential or commercial property, you can get a loan against it at a low-interest rate, with longer tenure and easy terms.
Gold Loan: You can unlock the value of your gold ornaments by pledging them as security to get a loan.
Loan Against Deposits, Securities and Other Investments: You can easily get a loan against fixed deposits, recurring deposits, mutual funds, shares, bonds, LIC, PF and other investments to fund your immediate financial needs.
Loan Against Credit Cards: If you have Credit Cards, you can get a loan against them and repay the amount in easy EMIs.
We hope that the detailed information will be helpful for you if you are a non-salaried individual looking for a Personal Loan.