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Factors lenders look into when evaluating personal loan for self-employed applications

  • Highlights

  • Lenders review your age and credit score when evaluating your loan application

  • Your business stability is checked

  • Your business’ income and profits are reviewed too

  • Lenders also check your income tax returns

With the Bajaj Finserv Personal Loan for Self-Employed professionals, securing finance for personal needs is no longer exclusively for the salaried. Through this loan you can access substantial funding to the tune of Rs.30 lakh and enjoy other benefits too. However, in order to get approval and a sanction on favourable terms, it is essential that you know what your approval depends on. So, take a look at the factors that all lenders look into when you apply for a personal loan for self-employed professionals.

Your age

Lenders have their own set of eligibility criteria and this includes an age group that they sanction loans to. In order to get approval on your application it is important that you fall within this age bracket. This criteria helps the lender be sure that you’re not on the verge of retiring, nor are you too young. In both cases, inadequate finance is a cause of concern for lenders.

Your credit score

Your credit score plays a very important role as it helps lenders judge your creditworthiness and enables them to determine factors such as the loan amount, interest rate and tenor. Given that this loan is unsecured, it is best to have a credit score of 750 or higher for easy approval. If your credit score is lacking, you may not get the sanction you’re hoping for or may have to pay higher interest.

All about Personal Loan for self-employed individuals

Your business type and its vintage

Lenders are wary about lending to those who own risky businesses and so they take your business type into consideration while reviewing your application. A safe business indicates that you’re likely to have better repayment potential. Lenders also prefer candidates whose business is at least 3 years old to avoid the risk of non-repayment owing to instability.

Your income

Your profits and income play a major role as lenders will sanction the amount only if they’re sure that you’ll have the resources to repay it on time. Low income and poor profits indicate that the chances of default or delayed payments are high. This is why certain lenders review your profit and loss account as well as balance sheets and other financial documents before sanctioning the loan.

Your income tax returns

Your personal and business tax returns will both be examined carefully. This is because lenders avoid sanctioning loans to those that have defaulted on their tax filings or have irregular tax filings. In order to prove your eligibility, most lenders require you to provide at least 2 or 3 years’ income tax returns.

Keep these pointers in mind before you apply for Personal Loan for Self-Employed from Bajaj Finserv to ensure hassle-free approval. Further, to ensure that you get a flexible personal loan, make use of Bajaj Finserv’s Flexi Loan facility. It enables you to borrow as you need from your sanction and pay interest only on the amount you use. You can also pay interest-only EMIs through the tenor and repay the principal at the end. To get quick access to these features and others like it, check your pre-approved offer and apply right away.

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