Things to Ponder Upon While Taking a Personal Loan for Self-Employed
Personal loan for self-employed which came into existence because self-employed individuals were having a hard time availing a personal loan. The reasons were pretty obvious - they lacked a stable source of income, their repayment capacity was unsure and so the risk factor associated with them for the lender was always high. All these problems paved the way for personal loan for self-employed - an exclusive personal loan created to cater only to the needs of those freelancing or doing business, and entitled potential applicants with easy access to loan without collateral.
However, if you are planning to apply for the said scheme, take time to think about the below mentioned things before applying.
- Annual business revenue: It is one of the factors which would be considered by lenders to decide how much to offer you, and whether you’ll be able to repay it. Simply put, your business’ annual revenue would decide your borrowing eligibility and your repayment ability.
- Tax returns: A business has to have ITR receipts of at least two previous years from the date of application. If the receipts are not available, the lender might create issues in approving the application of business loan.
- Type and potential of business: The last but not least, the type of business you own and its growth potential will help the lender determine the risk associated with approving your loan application. So, business owners applying for the said scheme should carry their business growth plans and growth potential charts while visiting the lender for loan.
May 17th, 2019