Personal loans are extremely popular with the Indian masses today. It is one of the simplest avenues to avail funding, with no pledging/mortgaging of collateral to receive the proceeds. As per a report published in The Times of India, personal loans now represent almost 28% of total bank credits in India as of February end 2020.
While these loans are available to both salaried and self-employed individuals, the latter section of applicants often has to undergo an extensive documentation process before they can avail said credit.
For instance, availing a personal loan for self-employed without ITR is next to impossible in most cases. Nevertheless, if you lack this particular piece of paper, you may need to devise alternate ways to avail such loans.
Choosing a Secured Personal Loan
Personal loans, by nature, are unsecured funding options, which means you do not need to hypothecate assets to avail the funds from your lender. However, if you are adamant on availing a personal loan for self-employed with no proof of income, you may need to convince NBFCs by collateralising an asset.
While lending money without any proof of income is a risky move, NBFCs and banks may agree if you are ready to minimise their risk by hypothecating your owned property against the loan amount. In case of a personal loan for self-employed with ITR, you would not need to pledge an asset against this loan.
While this is one of the ways to avail a personal loan for self-employed without ITR, it is not the only avenue you can pursue.
Maintaining a Cordial Relationship with Lender
Individuals who have a long-standing relationship with a particular bank or financial institution may find it easier to avail a personal loan for self-employed with no proof of income from them. Depending on your past interactions with lenders, they may allow you to avail unsecured personal loans without furnishing your income tax return documents.
Still, you may need to pay a higher interest against such a loan. Therefore, if you have income proof available, always furnish the same to your financer for the best offers and terms. Nonetheless, if you lack this document, it may be better to look for alternatives rather than to avail a personal loan for self-employed without ITR.
What could be a better alternative, you ask?
Well, gold loans for sure!
Gold Loans: Avail a Loan with Minimal Documentation Requirements
In India, gold jewellery is a rather common asset in every household. However, most fail to think of them as equitable assets and keep them locked in safes or lockers. In such a state, these gold items are nothing more than dead assets. Gold loans allow you to utilise your jewellery, collateralising them against a substantial loan amount from banks and NBFCs.
After you repay your dues, you can reclaim the gold you have pledged and use them once more to avail another loan, when the need arises. Rather than searching for a personal loan for self-employed with no proof of income, you can instead opt for a gold loan, which is available with almost no documentation requirements.
Additionally, gold loans availed from Rupeek Fintech Pvt. Ltd., a leading digital lending platform for such loans, come with the following benefits –
- Disbursal in 30 minutes
Lenders often take a day or two to process and disburse your personal loan request. However, gold loans from this NBFC are approved and disbursed to your account in just 30 minutes.
Sounds unbelievable? Right!
Before loan disbursal, a loan manager appointed by the company will assess the gold ornaments you plan to pledge. He/she may perform a range of procedures to determine the purity of the gold as well. Nevertheless, once this assessment is complete, you can expect the loan proceeds to be deposited to your account within half an hour.
- Minimal documentation necessary
The NBFC ensures that you can avail gold loans without needing to furnish a bunch of documents. In fact, you only need to provide receipts for your gold ornaments to be pledged, along with OVDs for KYC registration, to avail the loan. When compared to personal loans, this documentation procedure is simpler and less time-consuming.
Therefore, a gold loan can be a valid option for you to consider, alongside personal loan for self employed with ITR or without ITR, when you are in need of funds. Gold loans are generally more convenient to avail as well.
For instance, with Rupeek’s doorstep loan process, borrowers can wait for a loan manager to come to their homes. These managers collect the gold from your house, once the loan amount is disbursed, and deliver it to the nearest partner bank’s vault. With such a process, you do not need to venture outside your home when looking to avail these advances.
While other apps may provide instant cash disbursal to eligible loan applicants as well, the competitive interest rates associated with gold loans make these products particularly beneficial to avail during financial emergencies.It can thus be easily concluded that, while opting for a personal loan for self-employed with ITR can be a viable proposition, gold loans can offer you with better terms and benefits, allowing you to optimise the utility of the funds borrowed.