Reasons why self-employed individuals opt for a Personal Loan

Personal loans can help finance many things, but people use it for a few common reasons. Higher education, emergencies, and debt consolidation are the popular reasons for taking a personal loan. Personal loans are usually unsecured and repaid in monthly instalments with interest. To establish personal loan eligibility, most banks consider the applicant’s creditworthiness and other variables. Personal loans for self employed individuals are specially designed to meet the financial needs of professionals like doctors, architects, lawyers, and business owners. It helps them acquire funds without pledging collateral to meet their personal or business needs. IDFC FIRST Bank offers FIRSTmoney smart personal loans for self-employed individuals at affordable rates and they can use it for any purpose as required.

As a self-employed individual, you should constantly consider the aim of a loan to see if you need to borrow money. There are different types of personal loans people avail of.

Here are some of the top reasons people use a personal loan.

Overcome cashflow challenges
 

Self-employed professionals often face irregular cash flows. A personal loan offers immediate liquidity, helping bridge the gap during lean periods or emergencies—such as medical bills, equipment repairs, or bulk inventory purchases.

Unlike business or secured loans, personal loans are typically unsecured. This means self-employed individuals can access funds without pledging business assets or personal property.

IDFC FIRST Bank offers digital personal loans with simplified documentation, especially if the borrower has a stable income track record and a good credit score over 730. This reduces processing time and ensures faster disbursal.

Personal loan for business
 

Before a new company gets equity and debt finance from investors, it requires seed funds to conceptualise and show its business model. Personal loans for self-employed can help new businesses because they can be obtained with minimum trouble and without collateral. So, if you have a vision, start with a personal loan for business. FIRSTmoney personal loans for self-employed come with easy eligibility requirements and instant approvals of funds that can go up to ₹10 lakhs. Without the need of collateral and interest rates starting at just 9.99% per annum, these loans are highly suitable for meeting the varying requirements of businesses.

Additionally, businesses may require varying funds, and FIRSTmoney addresses this with multiple on-demand loans, where you can opt for additional funds up to your approved loan amount anytime with just a single application.

Personal loan for marriage expenses
 

Weddings in India are great, but also expensive. We have a habit of overshooting our budget at weddings, which affects financial planning. Instead of being financially stressed because of spending too much on a wedding, one can apply for a personal loan for weddings to cover the costs of the ceremony. The money can be paid back in easy monthly instalments. FIRSTmoney smart personal loans come with flexible tenures ranging from 9 months to 60 months, which helps themselves-employed individuals manage their finances effectively.

Personal loan for education
 

Although you may have focused on your child's professional ambitions and made regular deposits to build a corpus for their future, the rising cost of education may leave you short on funds. In such a scenario, you can take out a personal loan for the education of your child and ensure that your child is accepted into their preferred college without having to worry about financial restraints.

Consolidate debt
 

Debt consolidation is a popular reason for taking out a personal loan. You combine your outstanding liabilities into one EMI when you apply for a personal loan and use it to pay off several other loans or credit cards dues. Such a categorisation of debt makes it easier to determine a realistic time frame for paying off your debts without being overwhelmed.

The lower interest rate is an appealing feature of a personal loan. It reduces the amount you spend on interest and the time to pay off your loan. Combining your debt allows you to pay your credit cards and other debts over time with a defined end date. The key here is to move your debt to a financial institution that priorities you and your needs.

With its zero foreclosure charge feature, IDFC FIRST Bank’s FIRSTmoney lets you close your loan anytime without any penalties, allowing you to manage your debts without any burden. As a self-employed individual, you can apply for a FIRSTmoney smart loan through a completely digital DIY (Do It Yourself) process and get an instant approval of funds that can go up to ₹10 lakhs.

Conclusion
 

These are just a few types of personal loans available in the market today. If you are thinking of applying for an instant personal loan, you can find all the details for it online. A good place to start your research would be IDFC FIRST Bank, as they offer competitive rates of interest and easy EMI options which makes loan repayment easier. Another reason to choose IDFC FIRST Bank’s FIRSTmoneyis their simple application process, which enables you to get your personal loan online in a paperless fashion. If you have a need that a personal loan can fulfil, do not stop yourself from actualising it. For an online personal loan application process, you can use some of the best lending apps, such as the IDFC FIRST Bank’s Mobile Banking App.