Most lenders generally ask for salary slips at the time of giving approval for a personal loan. But what if the borrower, instead of a salaried employee, is a freelancer?
One doesn’t need to fret. One can easily secure a personal loan even as a freelance professional. Instead of a salary slip, one can provide proof of income tax return.
These are the eligibility criteria for freelancers:
A. Age: Generally loan is given for applicants who are in the age group of 21-60 at the time of loan application.
B. Income: The monthly income should be ₹25,000 or higher, which can be proved via Income Tax return (ITR) for the past 2 years.
C. Credit score: The credit score should be reasonably high to get a loan approval. Someone with a score of 700 can easily procure a personal loan.
D. Employment status: One should be self-employed for at least 1-3 years with proof of ongoing projects and gigs.
A step-by-step guide
A. Check eligibility: Use lending websites or apps to enter basic details such as PAN, mobile number, and income for immediate assessment.
B. Loan details: You can then choose the loan amount ( ₹50,000 to ₹40 lakhs) and tenor based on your ability to repay.
C. Fill application: You can then submit the online form with all the details — personal and financial. You can upload documents via the app or portal.
D. Verification: The process then proceeds with verification, where online lenders can verify via video KYC or a call. One can get an approval within a couple of hours.
E. Disbursal: As funds hit your account in 24 hours (or instantly for pre-approved), you can sign the e-agreement.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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