Personal Loan for Non-Salaried People

However, most of the banks and NBFCs do not specify the interest rates on which personal loans will be given to non-employed people. The table given below lets you select your bank/loan institution based on its interest rates.

Personal Loan for Non-Salaried People
Personal Loan for Non-Salaried People
Personal Loan for Non–Employed – Features    
Rate of interest10.25% – 24% p.a.
loan amount₹ 50,000 to ₹ 40 lakh
Collateral/Securitynot necessary
payment term12 to 60 months
Loan processing time.1-5 business days
processing fee1% to 5% of the loan amount

Note: The above-mentioned interest rates and fees are subject to change. This will be at the discretion of the Bank/NBFC and RBI.

Personal Loan Interest Rates for Non – Employed

Personal loan interest rates start from 10.25% p.a. for non-employed applicants. These rates may vary from applicant to applicant based on their credit score, loan amount, age, repayment capacity, etc.

Comparison with interest rates of other banks/lending institutions

Bank/lending institutionInterest rate (per annum)
HDFC Bank10.25% – 21.00%
State Bank Of India9.60% – 13.85%
Punjab National Bank7.90% – 14.50%
ICICI Bank10.50% – 19.00%
Axis BankStarting from 10.25% p.a.
Kotak Mahindra BankStarting from 10.25%
Indusind bankStarting from 11.00%
IDFC First Bank10.49% – 23.00%
Bajaj FinservStarting from 13.00%
Tata CapitalStarting from 10.99%

Personal Loan for Self-employed: Eligibility Terms 

  • You must be a non-employed applicant
  • You must be at least 21 years old
  • Credit score must be at least 750 or above
  • Your annual income should match the eligibility condition prescribed by the bank
  • Your business has been running for at least 2 years.

Personal Loan for Self-Employed:  Documents Required 

  • Filled application form with passport size photograph
  • Id Proof :  Aadhar Card, PAN Card, Voter ID Card, Driving License, Passport, etc.
  • Know Proof :  Ration Card, Utility Bill (Electricity Bill, Phone Bill etc.), PAN Card, Aadhar Card, Voter ID Card, etc.
  • Business Proof : Proof  that the business is currently running, Certificate of Incorporation, Certificate of registration with the appropriate registration institution
  • Income Proof : ITR for the last 2 years, certified profit and loss statement
  • Any other document required by the bank

Factors Affecting Personal Loan Interest Rates      

  • Credit Score : Before sanctioning a personal loan, banks/lending institutions check the credit score of the applicant to assess his . A good credit score (above 750) indicates that you pay your loan on time. Therefore, banks / loan institutions will not hesitate to give you a loan at a low interest rate. 
  • Duration of Business :  If your business is earning a decent profit for at least 2 years, then you can get a personal loan at a low interest rate due to the stability of the business.  
  • Relationship with the bank : If you already have a current or savings account with the bank or have already taken a loan which you are repaying regularly, you can get a personal loan from that bank at a lower interest rate. Is.
Question. I have never filed an income tax return. Can I apply for a personal loan?

Answer:  ITR works as income proof for non-employed applicants. 
So, if you haven’t filed ITR, you might not be able to get a personal loan from a reputed bank. 
However, you can try to apply for the same in any NBFC which offers a personal loan without income proof.

Question. I was working with a multinational company  8 months back and have just started my own business. Can I apply for an instant personal loan for non–employees? 

Answer: Most of the banks/lending institutions prefer to offer personal loans to non-employed/self-employed applicants who have been in business for at least 2 years. However, some NBFCs can offer personal loans even if they are a new business.

Question. What if I am never able to pay the EMI?

Answer:  If you are not able to pay the EMI at any point in time, you will not only have to pay late payment charges but your credit score may also get lower.            

Question. Is it possible to prepay/foreclose my personal loan? 

Answer: Most of the banks/lending institutions allow foreclosure of personal loans only after paying 6-12 regular EMIs. However, banks/lending institutions offering personal loans at floating rates do not stipulate such conditions.        

Question. How can I apply offline for a non-employed personal loan?

Answer: Non-employed people can visit the nearest branch of their chosen bank/loan institution to apply for a personal loan offline. There you can register your query with their loan department or call the customer care of the potential bank/ loan institution. 

Question. Can I use this personal loan for business-related purposes? 

Answer:  Yes, most banks allow you to use a personal loan for both personal and business purposes. There is currently no restriction on the end-use of a non-employed personal loan, so you can use it for various expenses like home renovation, buying equipment/gadgets, vacations, weddings.

Question. When will the loan amount be transferred to my account? 

Answer: Once your loan application is approved, the amount is transferred to your account within 1 to 5 working days. However, the loan amount sanctioned may apply for a shorter or longer period between approval to disbursal depending on key factors such as the credit profile of an individual. Many banks/loan institutions also offer pre-approved instant personal loans for select applicants with a good credit profile. 


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