Constant development in the finance and banking sectors has enabled individuals to avail their services more efficiently. It also empowers financial institutions to reach out to their potential customer base directly. Whether you are self-employed, working with a listed firm or a proprietorship company, you can access varied financial services, including loans, effortlessly. As long as you demonstrate creditworthiness and stable employment, you should have no problem acquiring loans. Here we cover everything you need to know about Personal Loan for proprietorship company employees.
Personal Loan for Proprietorship Firm Employees
Proprietor or partnership firms are private entities owned by one or more persons. While these businesses may be successful with excellent revenue, lenders may ask employees from such non-listed organisations for additional information if they have any further queries during the loan application process. As such, they may be vary of approving loans based solely on their credit score and income. Essentially, lenders evaluate a company’s credibility to ensure its employees can repay their Personal Loan on time.
How to Get A Personal Loan for Proprietorship Firm Employees
Below are a few things applicants from a proprietorship company can do to obtain a Personal Loan with ease.
- Show stability in income
Employees of proprietorship/partnership firms can negotiate preferential Personal Loan terms by showing a higher salary and income stability. The lender may ask you to provide income proof, such as the latest salary slips or bank statements. If your firm has been around for long, you can use that to leverage excellent terms such as higher loan amounts and lower interest rates. - Close existing debts
It helps your case if you apply for a loan after closing your existing debts. If you cannot do so, you must at least try to reduce your debt-to-income ratio considerably. A low debt-to-income ratio translates to more disposable income and enhances your loan eligibility. - Maintain a good credit score
Your credit score is a reflection of your previous debt repayments. Timely repayment of debts, including loan EMIs and credit card dues, gives you a good credit score. Typically, you should aim for a credit score of 750 points or higher. Such a credit score enables you to negotiate your preferred repayment tenure and interest rate when you apply for a Personal Loan for proprietorship company employees. - Compare lenders
Do your research on lenders' interest rates and eligibility criteria. Some lenders offer unique features and benefits depending on your company. If your proprietorship company has any bank tie-ups, you can increase your chances of securing preferential Personal Loans when you apply with those banks. Your companies' affiliation with the lender may also reduce the loan processing time. - Avoid multiple loan applications
Multiple loan applications mean multiple lenders making hard inquiries on your credit report. This makes you look like a credit hungry consumer and a high risk borrower, leading lenders to reject your loan application. Apply with one lender; if rejected, rebuild your credit score and re-apply with another lender after six months. - Eligibility Criteria and Documentation
Below are the requirements for Personal Loan for proprietorship firm employees: - Age group: 21 and 60 years
- Employment status: Employed with the current proprietorship company for at least two consecutive years
- Minimum net monthly income: ₹25,000 in hand, after deductions.
To obtain a Personal Loan for proprietorship company employees, you must submit:
- Duly filled loan application form
- Proof of age and identity: PAN/Passport/Voter ID/Driving license/Aadhaar card
- Proof of Residence: Utility Bills/Passport/Voter ID/Driving license/Aadhaar card
- Proof of Income: Last three months' bank statement/Last two months’ salary slips/Current salary certificate with the latest Form 16
You can read more on the documents requirements for Personal Loan by clicking here.
Get HDFC Bank Personal Loans for All Your Financial Needs
HDFC Bank's collateral-free Personal Loans require minimum documentation and processing time. It takes just a few quick and easy steps to apply for a Personal Loan with HDFC Bank. Once you do apply, you enjoy a host of benefits, including flexible tenures up to five years, 10-seconds disbursal for selected pre-approved customers and affordable EMIs starting at ₹2,149/Lakh.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.