Borrowing options for self employed if personal loan rejected

In the last few years, new trends in the employment market have emerged, including frequent job-hopping and freelancing. As a result, many people are experiencing inconsistent income, which has resulted in a rise in the number of rejections by lenders in case of personal loans for self employed.

In the view of lenders, irregular income has a negative impact on your repaying ability to make your loan payments on time. Also, because banks and non-banking financial companies (NBFCs) have tight regulations and frameworks, the vast majority of people with insecure incomes are forced to be turned down for loans.

That is where fintech and their loans like cashe loan can come to your rescue. Besides that, listed below are several borrowing choices for those who earn an irregular income and are rejected upon applying personal loan for self employed.

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Loan against gold

Historically, gold loans have been a common source of financing, particularly in India, where a considerable portion of the population chooses to retain gold as a reserve for emergencies. It is a secured loan in which gold is pledged as security as a form of repayment. Because the loan amount is usually determined by the worth of the gold and given more focus than the borrower’s ability to repay the loan, it is frequently used to help those in need of money upon facing ineligibility or rejection in the case of personal loan for self employed.

Gold loans can be easily obtained by those with irregular income who have failed to obtain other types of loans, such as a personal loans. They are disbursed immediately and with minimal documentation and eligibility criterion requirements. As a result, gold loans are an excellent source of finances for individuals such as freelancers, consultants, and other professionals who do not have a consistent and predictable source of income.

Keep in mind that, despite the fact that gold loans are disbursed fast, their tenors are often shorter, with the maximum time generally being up to three years. When taking out a gold loan, make sure you have enough savings or investments that can be used to pay off the loan’s recurring monthly instalments on time. If you fail to do so, the lender will take possession of the collateral (gold) you have placed with them in order to recover their money. And if you have insufficient gold for taking a loan, you can go for a cashe loan to bail yourself out of a financial crunch.

Loan against properties

Residential, industrial, and select commercial properties are acceptable forms of collateral for loans for both business and personal purposes. Loans against property are available for both business and personal purposes. The loan amount disbursed is a percentage of the property’s worth, and the loan to value ratio provided by the lender determines how much money is disbursed. Due to the fact that loans against property are secured loans, the interest rates are not normally extremely high, and the loan tenure can be up to 15-20 years in length. Given the fact that they are secured loans, individuals with irregular income who own property in their name are eligible to apply for this loan, especially if a personal loan for self employed is rejected.

Keep in mind that the loan amount a borrower receives is determined by the type of property, the customer’s credit history, the LTV supplied by the lender, and other factors. Because loans secured by real estate are typically for big sums of money, it is critical that you repay the loan on time. Otherwise, the lender may take possession of the property used as collateral and sell it in order to recover their losses.

Also, if you want a relatively smaller loan amount for which pledging a property isn’t required, you can go for a cashe loan to meet your smaller financial needs for a loan.


Loan against securities

These loans are secured by your securities like stocks, insurance etc. and offer you liquidity without allowing you to lose ownership of your pledged security. To take a loan against approved securities, all lenders furnish a complete list of the securities that can be pledged to secure the loan. Securities such as Demat shares, mutual fund units, term deposits, listed bonds, insurance policies, and provident funds, among others, fall within this category of securities. 

These loans are made possible by an overdraft facility available on a current account, with the borrowing limit determined by the value of the collateral pledged. The borrower has the ability to withdraw funds from this account and also repay by depositing the funds back into the account. Generally speaking, loans against securities are less expensive than personal loans like cashe loans and credit cards, which have higher interest rates because interest is only levied on the outstanding amount of balance in the account at month-end.

Keep in mind that because these loans are secured by a variety of assets, you must ensure that the asset you are pledging is on the lender’s approved asset list before proceeding. If this is not the case, your loan will be denied. In the event that you fail to repay your debt, you may lose ownership of the securities you pledged.

Loan against credit card

If your cashe loan got rejected, another lesser-known credit option is available to bail you out if in case you are a credit cardholder. It’s a credit card loan.

Loans against credit cards are pre-approved loans in which the bank lends you up to a particular percentage of your credit card limit, depending on your credit score. Because they have already been pre-approved, they typically require minimum documentation because the lender already knows your profile from your credit card use. These can be handy credit options for those whose application for a personal loan for self employed got rejected.

Depending on the type of credit card and the customer’s profile, the interest rate charged may be slightly greater than that paid on personal loans. The amount of the loan is determined by how much of the borrower’s credit card limit has been used. Some lenders, on the other hand, may be willing to extend you a loan that goes above and beyond your credit limit if they are confident in your ability to repay the debt.