If you are a freelancer, consultant, shop owner, or other type of small business, having access to cash at the right times can drastically change your business’s ability to grow. A business loan for self-employed individuals is a financial product designed for self-employed individuals and can cover everything from working capital and operations to inventory or assets.
Can self-employed people get a business loan? Yes! As long as you have the right documents, verifiable income with a track record, and a reasonable credit score, self-employed business loans are available and are usually obtained more easily than even you may believe.
Why Self-Employed Business Loans?
Being self-employed means you are always dealing with a few things, such as cash flow variability, seasonal highs and lows, or simply needing cash to continue growing your business. Countless reasons for self-employed professionals to request a loan, including but not limited to:
– Growth, expansion, and/or opening a new location
– Purchasing inventory or raw input materials
– Upgrading tools, technology, or infrastructure
– Payroll or operational expenses
– Off-season gaps
– Marketing and/or launching new products and/or services
This is where a small business loan for self-employed individuals can provide a much-needed financial cushion, allowing you to grow without interruption.
Eligibility for Business Loans as a Self-Employed Professional
The parameters may vary lender to lender; however, here is the general eligibility for a self-employed business loan:
- Age: Between 21 and 65 Years
- Business Vintage: 1-3 years of consistent trading
- Minimum Turnover Annually: Varies with each lender but normally ₹10 to ₹20 lakhs
- CIBIL Score: 700 or more ideally, (but Manba Finance may accept in some cases if it’s less than 700)
- Income Status Evidence:100% income over 12 to 24 months is normal
- Nationality: Must be an Indian citizen and resident in India
The most common professionals include: doctors, architects, lawyers, consultants, and small shop owners who apply for business loans as self-employed professionals.
Core Features of Self-Employed Business Loans with Manba Finance
While considering a business loan as self-employed, here are some core features to expect:
- Loan Amount: Ranges from ₹50,000 to ₹5 lakhs
- Loan Tenure: Flexible amounts from 12 to 48 months
- Interest Rates: Competitive rates depending on profile and health of the business
- Collateral Free: Manba Finance offers unsecured business loans
- Fast Disbursal: Funds are normally disbursed within 48 to 72 hours
- Flexible Repayments: Readily available options for EMI or personalised repayment plans
This flexibility gives self-employed professionals the ability to borrow the funds and repay them without impacting their cash flow.
Documents Required for a Self-Employed Business Loan
To get started with a self-employed business loan, gather the following documents:
- KYC Documents: Aadhaar Card, PAN Card, Passport/Driving License
- Business Proof: GST Registration, Shop Act License, or any valid business certificate
- Financial Documents:
- Bank statements for the last 6–12 months
- ITR filings for the past 2 years
- Balance Sheet and P&L Statements (if applicable)
- Photograph: Passport-sized photo
- Ownership Proof: Business premises rental/ownership agreement
Lenders may ask for additional documents depending on the loan amount and business profile.
How to Apply for a Business Loan as a Self-Employed Individual
The application process is now digital, fast, and hassle-free. Here’s how to apply:
- Visit the Manba Finance Website: Go to www.manfafinance.com and click on the business loan application section.
- Fill Out the Application Form: Enter your personal, business, and financial details accurately.
- Share the Required Documents: Share your business proof, financial statements, and KYC documents securely online.
- Verification Process: Our team will review your application and may get in touch for additional details.
- Loan Disbursal: Once approved, the loan amount will be directly credited to your business bank account.
Apply today and take your business to the next level with Manba Finance.
Benefits of Collateral-Free Business Loans vs. Secured Loans
One of the biggest advantages of business loans for self-employed individuals is the availability of collateral-free options. Here’s why many choose unsecured loans:
| Collateral-Free Loans | Secured Loans |
| No need to pledge assets | Requires property/assets as security |
| Faster processing | Involves property evaluation |
| Ideal for small businesses & freelancers | Better for large loan amounts |
| Slightly higher interest rates | Lower interest due to reduced risk |
Collateral-free business loans allow self-employed entrepreneurs to get access to the necessary funds without the pressure of losing property, especially during the initial business operations or those who have few assets to spare.
Conclusion
A business loan to self-employed people can be your financial business partner when you expand as a freelancer or when you run a small business and face cash flow shortages. The availability of such loans has never been easier, as NBFCs and digital-first lenders have paperless and prompt solutions to suit the self-employed professionals.
Apply now Self-Employed Business Loan
Manba Finance is a lender that provides quick and easily tailored collateral-free business loans to self-employed people. Apply online to get your business to the next level and check your eligibility today.
