Self- Employed Individuals Equally Deserve Loans

8 May 2013

Loans are now-a-days very versatile from the aspect of considering the professional situation of people from all walks of life.

A large number of people are self-employed and the number is in fact growing with much increased scope than it was ever before. Self- employed individuals have special meaning by their contribution to the growth of the economy.

Financial necessity can come up in anybody’s life whether self-employed or salary earners. However, these people have been having unprivileged position so far getting loans are concerned in comparison to salary earners.

Proof of income has been the most problematic issue in case of approving loans often becoming a serious hindrance in approval of loans. Verification of income has been a fall of the hurdle process in case of self-employed, which could not be as straight as for salary earners.

People from occupational groups like insurance agents, contract workers, sales agents on commission, other self- employed individuals and freelancer workers in a number of other disciplines.

With the advancement and changes in every aspect of life, strategies in lending business have also changed considerably. The introduction of no income proof self employed loans are the one that has changed the picture erasing the bottleneck of loan approval.

The loan is categorically created looking at the needs of self-employed; one can’t say, the financial situation of this group of borrowers may be in general far more secure than salary earners.

In general, as a self-employed individual you can get any amount of loan for long term flexible duration provided it is a secured loan. The unsecured loans without collateral can let you have a small amount of loans for short periods.

The process of documentation is simply limited to bank statements to prove your income. It is important to note that the income is the valid factor for deciding credit worthiness of individuals while many people try to adjust the tax liability to the low side.

This sort of practice only creates problems in proving earning of the applicants and reflect on insufficient capacity of the repayment hence loan treated as risky no income proof self employed loans.

Summary:-

Now it is easy to get no income proof self employed loans, whether secured or unsecured. The only necessity is exposing correct credit worthiness with corroborated bank statements and correct income tax returns.

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