Self-Employed? Here’s What You Must Know About Choosing The Right Personal Loan

"Get an Instant Personal Loan for self-employed online up to ₹10 lakhs* and get quick disbursal, flexible repayment tenure, and instant approval."

Instant Personal Loan for Self Employed

5 mins read

Published: 2 January 2024

Updated: 2 January 2024

What if you get to choose your working hours and holidays? And plan it your way, not how others suggest you to do. Wouldn't that be great? Self-employment gives you this exact freedom and independence to decide for yourself how you desire to make your living.

But, with great perks comes great responsibility, and if you are a Marvel fan who would know this better than you do? Managing your finances when you do not have a regular monthly paycheck is hard. So, to manage that cash flow and to meet the needs, it is important that a self-employed person is well aware of the available facilities to seek financial help in a time of need.

Instant Personal Loan for Self-Employed:

Is a go-to answer for all those self-employed who require immediate funds in moments of unexpected emergencies. It is also one of the clever ways for those who wish to combine several smaller loans into a single new loan to obtain lower interest rates. Moreover, it provides opportunities for those who wish to either expand their business or meet their personal needs. But, this isn’t all that’s there to this personal loan for self-employed.

Urgent Financial Concerns of Self-Employed:

Instant personal loan ensures that they address the urgent financial requirements of self-employed individual borrowers. It gets you quick online application approvals on requests. By arranging timely online verification and transfer of funds into the borrowers account. This entire process has been simplified in a manner so that you can access the loan information, make payments, and monitor your accounts at your convenience.

Importance of Credit Score:

Maintaining a good credit score would help you secure favorable interest rates and terms. Instant personal loan for self-employed requires a credit score of more than 700 to qualify for the personal loan at a low-interest rate. Therefore, if you are a self-employed individual, you should note and manage your credit scores by making timely payments and monitoring your credit reports regularly. So that, you can get a better deal offer on your personal loans.

Digitalization of Personal Loan:

The rise of digital platforms has transformed the loan application process. Self-employed individuals can now conveniently apply for personal loans online and get instant approvals. Save a lot of time from the documentation process and manage their accounts without any difficulty. Digitalization has increased the accessibility of financial resources to individuals regardless of the physical location they reside. To bridge the gap further, we get to see the changing trends in the loan market as well.

An Evolving Trend In Personal Loan Market:

Self-employed individuals often seek financial assistance via banks, which is the traditional way of arranging personal loans where the interest rates are really high. But the newer alternatives, like P2P, are gaining popularity and are bringing a shifting trend in the market. These platforms are linking individual borrowers and lenders by connecting banks to their portals at lower interest rates. Making it hassle-free for you, when it comes to borrowing money.

  • P2P (Peer-to-Peer) Lending, Fintech Industry:

Fintech platforms like My Mudra showcases how accessing funds digitally through P2P (Peer-to-Peer) lending is similar to borrowing money from friends, family, or even moneylenders. The only difference is that it is an organized financial system which provides you with loans at lower interest rates. Both banks and Fintech platforms offer you financial advice and guidance assisting borrowers to make informed decisions. But, based on your requirements, you can tailor your loans and get it sanctioned quicker with minimal documentations through a fintech platform. Whereas, an informal borrowing may lack this professional input and you would potentially have fewer choices as well.

Eligibility Required for Personal Loan:

Fulfilling eligibility criteria and gathering necessary documentation for the application process plays an important role.

Lenders assess eligibility criteria based on various factors like: The age of the candidate should range from 21 years to 68 years. Their credit scores would decide their interest rates. One of the important criteria is to have a business stability of minimum 2-5 years with a consistent monthly income. As this decides their tenure period for loan repayment. Which means, the longer the business stability with a consistent income is the longer tenure period would be with lower EMIs.

Documentation Required for Personal Loan:

Other than providing the standard documents like identification and address proof. The documents required for personal loan for self employed are: Additional documents, like Business registration details, recent bank statements, income tax returns (ITR) and other documents depending on the type of profession you practice are necessary for the self employed to receive personal loans.

  • ITR in Personal Loan for Self-Employed:

To ensure your personal loan is approved smoothly and without any issues, having proper Income Tax Return (ITR) documentation is crucial.

“While the salaried can get a personal loan based on salary slips and bank statements, an Income Tax Return (ITR) may be required for self-employed people. Hence, a self-employed individual cannot obtain a personal loan without ITR.”

-By TEAM FINFIRST, 14th March 2023

As this is a collateral-free loan, therefore, banks may insist upon ITR as per the loan criteria to provide personal loans for self-employed. An application for a personal loan for self-employed without an ITR or other verification documents has a higher chance of getting rejected. To avoid this, ensure you have filed your income tax return which can showcase your continuity of a steady income from your business or profession, and provide the documentation while applying for your loan.

Repayment Terms and Interest Rates:

It’s important you explore and understand all the personal loan options, along with their interest rates and repayment terms. Self-employed individuals receive repayment options which are pocket-friendly to your EMI so that you can pay back in installments without struggling with your budget. Also, one should compare all the offers from different lenders to find suitable rates. As some banks include no hidden charges and have no minimal fees. Which makes great changes in your interest rates at the time of repayment.

Convenient Repayment Tenure for Loan:

Depending on the loan amount, tenure is the next important factor that plays a crucial role in the decision-making of choosing an instant personal loan. As you can now calculate your EMI online and can check your repayment tenure based on the amount of the loan taken. It's important to note that based upon the budget you have in mind, you should ensure your financial needs are being fulfilled without burdening yourself with unmanageable monthly installments.


Navigating a personal loan along with the latest emerging options for a self-employed individual, requires an understanding to secure financial support effectively. So, by considering factors like its benefits, documentation, eligibility, and repayment terms. One can make a strategic decision to secure the right personal loan based on their unique needs.

You can now book instant personal loan options by applying for the loans online at My Mudra website to secure your future and enjoy your independence along with your responsibilities.

Also read: Use an Instant Personal Loan to manage your emergencies with ease

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