What are the differences between personal loans for salaried vs self-employed individuals?
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Key differences: Documentation - Salaried: 3 months salary slips, Form 16, 6 months bank statements. Self-employed: 2-3 years ITR, P&L statements, Balance Sheet, GST registration, 12 months bank statements. Interest rates - Salaried: 10-18% p.a. Self-employed: 12-24% p.a. (1-3% higher). Eligibility - Salaried: Easier with minimum ₹25,000/month income. Self-employed: Requires minimum 2-3 years business continuity, ₹3-5 lakhs annual profit. Processing time - Salaried: 24-72 hours. Self-employed: 3-7 days due to additional verification. Loan amount - Salaried: 15-20x monthly salary. Self-employed: Based on average 2-3 years profit. Approval rates - Salaried: Higher (70-80%). Self-employed: Lower (50-60%).
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Salaried employees get loans easier with just salary slips and have lower interest rates. Self-employed people need to show business income proof for 2-3 years, face slightly higher rates, and take longer for approval. NBFCs are more friendly to self-employed than banks.
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