A self-employed, be it a kirana shop owner or someone running a clinic, does require funds to meet his/her personal needs and wishes. Not only that, even the emergencies can creep in anytime to set them back.

So, the clamour for a personal loan can be heard loud among self-employed these days. Recognizing that inherent need, lenders like HDFC Bank, ICICI Bank and others have stepped up their efforts of providing them a suitable personal loan offer. So, if you are one of those businessmen or professionals seeking a personal loan, you can apply at any of these banks for the same. Before applying, though, you want to see a complete detail of their offers, right? So, let’s get the details or personal loan for self-employed before us.

HDFC Bank Personal Loan for Self-employed

HDFC Bank offers self-employed a personal loan of up 15 lakhs at an interest rate of 15%-20.99% per annum for a maximum of 5 years. So, be it the wedding funds or some other needs, a self-employed can get personal loans for varied causes.

ICICI Bank Personal Loan for Self-employed

ICICI Bank, another private sector biggie, is a prominent name when it comes to offering a personal loan to self-employed. A loan of as much as 30 lakhs, based on the eligibility, can be disbursed to a self-employed. The loan to be provided would come at an interest rate of 10.99%-22% per annum. You can get a maximum of 5 years to repay the loan.

Personal Loan Eligibility for Self-employed

  • The age of a self-employed should be a minimum of 28 years at the time of application. On the other hand, the age must not exceed 65 years by the time loan matures.
  • Minimum business turnover must fall in the range of 15-40 lakhs
  • While disbursing a loan, the banks also check to see any existing relationship with the customer. If so, then they can look to make the offer more appealing by offering attractive interest rates.

Personal Loan Eligibility Calculator

Above pointers talk about the general eligibility for a personal loan. But, as self-employed, you must be interested to know the amount you are eligible to get in the form of a debt, right? This is derived from the eligibility calculator that takes into account your income, spends and savings to do so. Based on which, the calculator decides the loan amount for you. Before calculating the sum, the calculator computes the per lakh EMI first before analyzing your income, saving and spending pattern to ascertain the loan amount.

Personal Loan EMI Calculator

After knowing the loan amount you are likely to get, the next responsibility lies in checking the amount you must be ready to pay via EMI, which stands for equated monthly installment. The EMI, as you would know, consists of both principal and interest portions of a loan. You can know the installments using the EMI calculator, which is there online for easy access and use. All that you need to do is to enter the loan amount, rate of interest and tenure to calculate the EMI and interest likely on your case. Even though a personal loan can be granted for as long as 5 years, you can cut it down to 4 years or so to reduce the outflow of interest from your pocket. This would raise the EMI, though. If the EMI hike is manageable, you better go for a shorter tenure and save a few bucks from going out of your pocket. The calculator will help you budget your personal and business life accordingly so as to ensure a timely repayment.

Check Your Personal Loan Amortization Schedule

Using the EMI calculator has a dual advantage attached to it. Not only you get to know the EMI, you even see a schedule of principal and interest repayment on your loan every year. Apart from that, you will see outstanding loan balance at the end of every year. What that does is to help you set the time by which you can prepay the debt. As self-employed, you could be in for a bulk at any time. So, if the bulk awaits in three years time from now, you better use that pay off the debt before its agreed tenure to save some bucks which otherwise would go servicing the interest.