Personal Loan for Self-Employed
Getting a personal loan as a self-employed individual can be more challenging than if you were a salaried employee. However, it’s not impossible. Here are some tips to help you get a personal loan as a self-employed person
What is a Personal Loan for Self-Employed?
A personal loan for self-employed individuals is a type of unsecured loan that is designed specifically for those who work for themselves. Unlike secured loans, which require collateral such as a home or car, unsecured personal loans do not require any collateral, which means that they are typically easier to obtain. These loans can be used for a variety of purposes, such as consolidating debt, paying for home repairs or renovations, or covering unexpected expenses.
Interest rates from Popular Banks and NBFCs Self-Employed
Comparison of Personal Loan Interest Rates of Banks (2025)
| Bank | Interest Rate | Loan Amount | Processing Fee | Processing Time | Apply |
|---|---|---|---|---|---|
| DBS Bank | From 10.99% | Up to ₹15 Lakhs | 1-2% of loan amount | 24-48 hours | Apply |
| HDFC | From 10.85% | Up to ₹40 Lakhs | Up to 2.5% | 24-48 hours | Apply |
| Axis Bank | From 10.49% | Up to ₹40 Lakhs | 1.5% to 2% | 24-72 hours | Apply |
| ICICI Bank | 10.75% – 19% | Up to ₹40 Lakhs | Up to 2.5% | 24-48 hours | Apply |
| Bank of Baroda | 10.75% – 18.5% | Up to ₹5 Lakhs | 1%-2% | 48-72 hours | Apply |
| SBI | From 11% | Up to ₹30 Lakhs | Up to 1.5% | 2-3 working days | Apply |
| IndusInd | From 10.49% | Up to ₹50 Lakhs | Up to 2.5% | 24-48 hours | Apply |
| Yes Bank | From 10.99% | Up to ₹40 Lakhs | Up to 2.5% | 24-48 hours | Apply |
| Standard Chartered | From 11.5% | Up to ₹50 Lakhs | Up to 2.25% | 48-72 hours | Apply |
| IDFC | From 10.49% | Up to ₹50 Lakhs | Up to 3% | 24-48 hours | Apply |
| Kotak Mahindra | From 10.99% | Up to ₹40 Lakhs | 1% to 2.5% | 1-2 days | Apply |
| PNB | From 11.40% | Up to ₹20 Lakhs | Up to 1% | 2-3 days | Apply |
| Bandhan Bank | From 11.55% | Up to ₹25 Lakhs | Up to 2% | 48-72 hours | Apply |
Comparison of Personal Loan Interest Rates of NBFCs (2025)
| NBFC | Interest Rate | Loan Amount | Processing Fee | Processing Time | Apply |
|---|---|---|---|---|---|
| Piramal Finance | From 12.99% | Up to ₹35 Lakhs | 2%-3% | 24-72 hours | Apply |
| Shriram Finance | From 14% | Up to ₹35 Lakhs | Up to 3% | 2-3 days | Apply |
| Tata Capital | From 10.99% | Up to ₹35 Lakhs | Up to 2.5% | 24-48 hours | Apply |
| InCred | From 18% | Up to ₹3 Lakhs | 2% to 4% | Instant to 24 hrs | Apply |
| Finnable | From 16% | Up to ₹10 Lakhs | Up to 3% | 24-48 hours | Apply |
| PaySense | From 16.8% | Up to ₹5 Lakhs | Up to 2.5% | 24-48 hours | Apply |
| Poonawalla | From 9.99% | Up to ₹30 Lakhs | 1% to 2% | 24-72 hours | Apply |
| Fullerton | From 11.99% | Up to ₹25 Lakhs | Up to 3% | 1-2 working days | Apply |
| LendingKart | From 12% | Up to ₹3 Lakhs | 2% to 3% | 24-48 hours | Apply |
| Axis Finance | From 13% | Up to ₹25 Lakhs | Up to 2.5% | 1-2 days | Apply |
| Mahindra Finance | From 10.99% | Up to ₹10 Lakhs | Up to 3% | 2-3 days | Apply |
| Aditya Birla | From 11.99% | Up to ₹50 Lakhs | Up to 2.5% | 48-72 hours | Apply |
| Bajaj Finance | From 11% | Up to ₹50 Lakhs | Up to 4% | 24-72 hours | Apply |
Qualifying for a Personal Loan as a Self-Employed Individual
Qualifying for a personal loan as a self-employed individual can be more challenging than it is for those who are employed by a company or organization. This is because lenders typically rely on a borrower’s income and employment history to determine their ability to repay the loan. Without a traditional employer, self-employed individuals may need to provide additional documentation to demonstrate their income and financial stability.
When applying for a personal loan as a self-employed individual, you may need to provide documentation such as:
- Tax returns: Lenders may require several years’ worth of tax returns to verify your income and financial stability.
- Bank statements: You may need to provide several months’ worth of bank statements to show your income and expenses.
- Business financial statements: If you own a business, you may need to provide financial statements such as profit and loss statements or balance sheets to demonstrate your financial stability.
- Proof of income: You may need to provide additional documentation to verify your income, such as invoices or contracts from clients.
- Credit score: Your credit score will also be a factor in determining your eligibility for a personal loan. Self-employed individuals with good credit scores are more likely to qualify for a loan with favorable terms.
Benefits of Personal Loans for Self-Employed Individuals
There are several benefits to obtaining a personal loan as a self-employed individual. These include:
Flexibility: Personal loans can be used for a variety of purposes, such as consolidating debt or covering unexpected expenses.
Unsecured: Personal loans are typically unsecured, which means that you do not need to provide collateral to obtain the loan.
Quick access to funds: Personal loans can often be obtained quickly, providing you with access to the funds you need when you need them.
Fixed interest rates: Personal loans often come with fixed interest rates, which means that your monthly payments will remain the same throughout the life of the loan.
Build credit: Successfully repaying a personal loan can help you build your credit score, which can make it easier to obtain financing in the future.
Tips for Obtaining a Personal Loan as a Self-Employed Individual
If you are a self-employed individual who is interested in obtaining a personal loan, there are several tips that can help you increase your chances of approval. These include:
- Have a solid business plan: Lenders want to see that you have a solid business plan and that your business is financially stable. Make sure that your business plan is up-to-date and that you have a plan for repaying the loan.
- Keep accurate financial records: Make sure that your financial records are up-to-date and accurate, including your tax returns, bank statements, and business financial statements.
- Maintain good credit: Your credit score will be an important factor in determining your eligibility for a personal loan. Make sure that you pay your bills on time and keep your credit utilization low to maintain a good credit score.
- Shop around for lenders: Different lenders may have different requirements and terms for personal loans for self-employed individuals. Shop around to find a lender that offers the best terms and rates for your needs.
- Consider a co-signer: If you have a friend or family member with good credit who is willing to co-sign on the loan, this can increase your chances of approval and help you obtain a lower interest rate.
- Be prepared to provide additional documentation: As a self-employed individual, you may need to provide additional documentation to demonstrate your income and financial stability. Be prepared to provide tax returns, bank statements, and other financial documents as needed.
- Consider alternative lenders: If traditional lenders are not willing to offer you a personal loan, consider alternative lenders such as online lenders or peer-to-peer lending platforms. These lenders may have more flexible requirements and be more willing to work with self-employed individuals.
