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Posted on Tuesday May 8th, 2018

Individual engaged in using professional skill for commercial gain and profess any working activity is considered a self-employed professional. This term applies most readily to doctors, chartered accountants, lawyers , retail merchants and architects. Other profiles such as management consultants from other domain such as finance, supply chain, manufacturing, marketing, etc. as well as professionals from other activity and commercial areas such as HR consultants, teachers/tutors, fashion designers, commission sales agents for a variety of sectors, etc. are usually treated as self-employed individuals.

Banks has listed various specific professions that can be considered for funding on their individual financial merits . For example, doctors looking for loans to set up their own clinics are treated favorably by most lenders due to their steady income and relatively low risk profile.

For a self-employed professional, the risk profile as a borrower is more than that of a salaried person. Therefore, the lenders determine the eligibility of the borrower on the basis of past earnings. Generally, two years Income Tax returns, balance sheet and Profit & Loss statements are required to establish to ascertain borrowing ability, along with bank statements of the last 3-6 months to show creditworthiness of the individual and net portfolio assessment.

Lenders such as banks and other financial institutions offer two kinds of unsecured lending to self employed professionals .

  1. Business LoansSelf employed can avail this loan If  practice continues for a period of three years or more, unsecured business loans can be availed of, on the basis of your previous years’ work performance and IT returns. These are effectively a form of personal loan to the business.
  2. Personal loans: This is the most frequent form of unsecured loan availed of by self-employed professionals availed for quick money purpose, and is usually available for a tenure of 1-5 years. Amount of the loan, tenure and interest are at the discretion of the lender as per customer profile .

With the increase in numbers of self employed professionals and advent of mushrooming business opportunities , lending has become blessings for all those who need money for specific purpose in no time . Emerging India has witnessed tremendous growth in working opportunities and has enamored high class individuals opting for such professional to use their dynamic skills to earn manifold . Thus “Unsecured Loans” in the capacity of borrowers has turned to be a hot cake selling product for their immediate working capital needs . specializes in such products for the purpose of immediate lending from reputed banks and financial institutions .