Many individuals seeking personal loan have myth that the minimum income required for personal loan is always high and that’s why only select individuals are eligible to get the loan. Especially self employed professionals are many a times hesitant to apply for personal loan.

However this is not true, as there are many lenders in India offering personal loan for low income earners which includes salaried and self employed professionals.

And in this article, we’ll discuss about personal loan for Rs. 6,250 & Rs. 8,333 monthly income earner who are self employed. This income is equivalent to annual income of Rs. 75,000 and Rs. 1,00,000 per year respectively.

This personal loan is offered by HDB Financial Services Ltd. (HDBFS); a non-banking financial company, part of HDFC Group, which includes HDFC Bank Limited.

Details on Personal Loan for ₹6,250 or ₹8,333 Monthly Earners from HDBFS

Only Self employed – professionals, individuals, and private companies and partnership firm from non-metro cities are eligible to get this personal loan from HDBFS requiring annual income of Rs. 75,000.

For applicants from metro cities, the minimum annual income required is Rs. 1,00,000 (1 Lakh) i.e. Rs. 8,333 per month.

According to HDBFS; metro cities are Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai & Pune. And all other locations are considered as non-metro.

There are three categories for self employed defined by HDBFS who are earning Rs. 75,000 and Rs. 1,00,000 every year and want to apply for personal loan.

(1) Self Employed Professionals – Doctors, Chartered Accountants, Architects, and Company Secretaries with minimum 3 years into business.
(2) Self Employed Individuals – Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services with minimum 4 years into business and 2 years into the same business.
(3) Self Employed – Private Companies and Partnership Firms – Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services with minimum 4 years into business and 2 years into the same business.

The minimum age limit is 22 years and maximum 65 years.

Up to Rs. 20 Lakh loan amount is offered.

The loan tenure is 1 year to maximum 5 years.

The common documents required are as follows:

Personal Documents – Proof of ID, Address, Date of Birth
Financial Documents – Latest 3 Months bank statements / 6 months’ bank passbook, Latest ITR along with computation of income, B/S & P&L a/c for the last 2 years certified by a Chartered Accountant.
Business Documents – Sole Proprietorship Declaration or Certificate Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (Certified by Director) & Board resolution (Original).

The minimum net monthly income required for applicants from metro cities – Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai & Pune is Rs. 20,000 & Rs.15,000 for other locations.

HDFC Group includes following companies

(1) HDFC Bank
(2) HDB Financial Services
(3) HDFC Limited
(4) HDFC Securities
(5) HDFC Mutual Fund
(6) HDFC Life
(7) HDFC Ergo
(8) HDFC Pension
(9) HDFC Credila

Although Indian banks are increasingly wary of lending money. The difficulty is even greater in the case of the self-employed and the new self-employed, who are often treated with great suspicion by banks unless they have guarantees, endorsements or a very solid financial history. But since the annual income required for personal loan is low; HDBFS is a good option for borrowing money for self-employed individuals.

Considering the fact that the only objective of self-employed workers or entrepreneurs is to work or start up a new business or expand existing business. For these professionals, time is money. That is why HDBFS is focused on offering the option of obtaining the loan quickly and efficiently, for self-employed. They have streamlined the application and loan process as much as possible.

Author Bio:

I am Nikesh Mehta, owner and writer of this site.

I’m an analytics and digital marketing professional and also love writing on finance and technology industry during my spare time. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at nikeshmehta@allonmoney.com or LinkedIn profile.