Indian banks scrutinize self-employed loan applicants more closely

Self-employed individuals in India face stricter requirements, including higher interest rates and specific documentation, when applying for personal loans. This is due to the variable income and perceived higher risk associated with non-salaried borrowers. Banks assess self-employed applicants based on income, credit scores, and business stability, with eligibility criteria varying between lenders. Higher minimum income requirements and interest rates are common compared to salaried individuals, reflecting the increased risk. Documentation, such as income tax returns and business proof, is crucial for loan approval. Maintaining a good credit score is also essential for self-employed individuals seeking personal loans, as it significantly impacts approval chances.