Every business is different and so are its financial needs, and it can be quite challenging to fulfil these financial needs. A business loan is one of the best ways to add capital or bring in funds. Whether for business growth or expansion, working capital requirement, or simply to fund purchases, entrepreneurs can meet a variety of their business demands by opting for this loan.
An unsecured business loan for the self-employed can help professionals or business owners serve any short-term financial needs, labour capital requirements, and more. Furthermore, women entrepreneurs have an added advantage of discounted interest rates, which most banks or NBFCs offer as an incentive.
Business Loan Interest Rates for Self-Employed
Take a look at the interest rates for a business loan for the self-employed, offered by some of the well-known banks and NBFCs in India:
Lenders |
Rate of Interest |
20.5% onwards |
|
15% onwards |
|
15% onwards |
|
18% onwards |
|
12% onwards |
|
16.50% onwards |
*Interest rates mentioned in the above table can vary from one lending partner to the other and are subject to change.
Features of Business Loan for Self-Employed
One of the easiest and quickest ways to get financial aid for your business is by opting for a business loan. Here are some of the features that you can avail of with unsecured business loans for self-employed individuals:
Collateral-free: Business loans are unsecured loans i.e., need no security from the applicant. Banks and other lending institutions check the credit scores of the applicant and the business in order to facilitate the loan.
Flexible repayment tenure: One of the key features of a business loan is that the repayment tenure offered by most lenders is flexible.
Fixed rate of interest: Business loans offer a fixed rate of interest that is applicable for the entire loan tenure. This rate of interest does not change during the loan tenure, despite of any change in economy, market conditions, etc.
Floating rate of interest: Business loans also have an option of floating rate of interest, also known as variable or adjustable rate of interest. The rate of interest varies i.e., ‘floats’ reflecting the market or economic conditions.
Quick processing: If you have all the documents and paperwork in place, business loans are usually processed quickly, and the amount is disbursed in no time.
Eligibility for Self-Employed Business Loan
A business loan for self-employed individuals with no collateral depends on many factors, including the lender's risk appetite and the borrower's creditworthiness. Here is the basic eligibility criteria that most banks and NBFCs have for individuals who wish to apply for a business loan.
Business loan applicants must be an Indian national.
Loan applicants should be minimum of 18 years of age and a maximum of 65 years at the time of maturity.
All self-employed individuals, private limited companies, proprietors, and partnership firms. Etc., are eligible to opt for unsecured business loans.
Applicants must have no previous loan or credit defaults with NBFCs, banks, or other lending institutions.
Applicant’s creditworthiness, repayment track record, CIBIL score of 700 and above, etc., are ideal for business loan eligibility.
Documents Required for Self-Employed Business Loan
Before you apply for a business loan, or any loan for that matter, it is always advisable to have the basic set of documents handy. This helps your loan application get approved faster and in a more hassle-free manner. Take a look at the basic documents that you must have handy before you apply for a business loan for self-employed:
KYC documents of the loan applicant – Aadhaar card, Passport, PAN card, Voter’s ID, Driving Licence, Utility bills, etc.
PAN card of the business
Address proof of the business
Establishment Certificate or company incorporation proof of business
Bank statement of last 1 year
Business or company’s Income Tax Returns of the past year
Filled-out unsecured business loans for self-employed application form
2 passport-sized photographs of the applicant
How to Apply for Business Loan for Self-Employed
Follow this step-by-step guide if you’re looking to opt for a business loan for the self-employed:
Visit Bajaj Markets platform that has partnered with top banks, NBFCs, etc., that offer business loans.
Compare the interest rate, processing fees and other requirements that different lenders have quoted. This will help you finalise the bank or NBFC you want to approach for a business loan.
Enter your personal and professional details.
You can calculate your EMIs through free EMI calculators available online. Simply enter the loan amount you seek, the rate of interest offered by the lender, and your choice's tenure.
After the loan application is submitted, a representative of the bank or lending institute reaches out to the applicant regarding their loan application and document verification. The representative from that point on will then handle your process. If you want additional information about business loans and understand more details, then you can also choose to visit the lender’s nearest branch and fill out the application in person.
A business loan is one of the most common ways of raising capital for a company, business, or even to help self-employed professionals. With the help of a business loan for the self-employed, you can take care of your business expansion requirements, working capital needs, labour financing, and much more. Take a look at some of the salient features of business loans, understand lender requirements and apply online at ease!
