How can a Freelancer Apply for a Loan in India
The term freelancer stimulates the feeling of self-employment and dedicated work. If you already work as a freelancer, then you would know the advantages of having independence at work. The idea of working with your creative side, and making what suits you the best.
Of course, when you have a freelancing job, it’s much easier to anticipate the difficulty of finding a loan. It’s tricky to have a personal loan under It’s not easy for any business to qualify for a loan from a big bank these days, but it’s all the more difficult for a freelance business. According to Financial Institutions, new ventures are considered as probable risk and which is why they are subject to less risky personal loans. What happens when your freelancing business incurs a loss? Then your business relies fully on your competencies to work.
Do freelancers have any scope for personal financing at all?
This is exactly why freelancers would be extremely interested to try new methods of personal loans. Today, many financial institutions offer good financing online for freelancers too. If the online lenders are compared to the physical options, then it is much better to keep it online. Plus, the eligibility criteria can be termed easy for freelancers. No hassles are found concerning credit scores, growth revenues, business strategies, online channels are less cost-effective. This is the best bargain you can achieve with convenient and one-click mechanisms.
We can quickly tour through the various bank loan options available. A few credible lending companies do offer personal loans to freelancers and their counterparts. Also, take note of all the available online options.
Availing a personal loan in India, the below-mentioned documents must be prepared ready (specific to the banking and non-banking institutions) :
Here are the few common documents required for a personal loan (these documents are universal in nature, setting aside the bank/financial institution):
- Full loan application form with one attached passport size photo.
- Proof of Identity: Voter ID Card/Passport/PAN Card/Driving License
- Proof of Address: Ration Card/Passport/Utility Bill
- Proof of Birth: Voter ID Card/Passport/PAN Card/Driving License
The essential financial documents to be listed as under:
For the Salaried:-
- Last 3 month’s Salary Slips along with Form 16
- Bank Statements of 6 months atleast.
- Job Continuity Proof: Present Employment Certificate/Job Appointment letter/ Experience Certificate.
For Self Employed Individuals: –
- Last 1-year bank statement for all accounts
- Office Address Proof: Property Paper/Maintenance Bill/Utility Bill
- Business Existence Proof:
- Income Proof: Latest 2 years Income Tax returns at least
Any salaried/self-employed/professional can apply for a personal loan in India. Home Credit is one such leading company which provides freelancer loans to individuals to have independence and tension free life.
This is as good as for ordinary individuals. All financial institutions will have to have proper documents of income. Tax returns for atleast 3 years in a row and with quick KYC too. Everything else will depend on the type of financial institutions and their official norms.