Personal loan by type
Personal Loan for Self-Employed.
Self-employed applicants get a tighter FOIR cap than salaried applicants — see how that changes your eligibility below.
Self-employed eligibility
How much can I borrow?
Assumes 12% p.a. over 5 years for personal loan — adjust the loan type above to change these assumptions.
How this is calculated
Lenders in India typically cap your total EMIs (existing + new) at 45–50% of net monthly income (the Fixed Obligation to Income Ratio, or FOIR), and separately cap the loan amount itself as a multiple of your monthly income. Banks approve whichever of the two gives the lower amount. This is a planning estimate — actual approved amounts depend on your credit score, employer category, and the specific lender's policy.
- Principal amount
- ₹5,00,000
- Total interest
- ₹1,06,492
- Total amount
- ₹6,06,492
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹1,45,639 | ₹56,525 | ₹3,54,361 |
| 2 | ₹1,65,741 | ₹36,423 | ₹1,88,619 |
| 3 | ₹1,88,618 | ₹13,545 | ₹0 |
Frequently asked questions
Is it harder for self-employed applicants to get a personal loan?
Lenders typically apply a tighter FOIR cap — around 45% of net monthly income versus roughly 50% for salaried applicants — reflecting less predictable income. Approval is still very achievable with clean ITRs and a stable business history; it just requires more documentation.
What income proof do self-employed applicants need?
Typically the last 2-3 years' ITRs with computation of income, audited financials or a CA-certified statement for larger loans, business bank statements for the last 6-12 months, and proof of business continuity (registration, GST returns, or trade license).
Does business vintage affect eligibility?
Yes — most lenders require at least 2-3 years of continuous business operation before considering a self-employed applicant for a personal loan, since a longer track record demonstrates income stability.