When you are employed on your own, life becomes easy. After all, how many people can live life on their own terms? But, you can, as you are your boss, no strings attached. However, one thing that bothers all self-employed professionals alike is the continuity of income. Not anymore, as a personal loan for self-employed without ITR can take care of your capital requirements, even as you focus on the more important creative aspects of your work.

This article acquaints you with the top-5 factors that determine personal loan approval for creative self-employed professionals like you.

  1. ITR File

The first factor that plays a major role in the approval of the personal loan is your income tax records.

Generally, many reputed lenders require you to furnish ITR proof of at least 3 previous years for being eligible to receive the personal loan amount. However, you can also apply personal loan for self-employed professionals without ITR. The only trade-off you have to accept is a reduction in the loan amount.

When you have ITR records, you can apply for a personal loan of up to INR 25 lakh; but, if you are a self-employed professional without ITR, you can get an unsecured personal loan of up to INR 10 lakh.

Although the ITR file may entitle you to receive a higher amount, you can still apply for a personal loan if you are self-employed without ITR.

  1. Proof of Income

Any personal loan eligibility calculator would show you that you need to submit documents like proof of business, PAN Card, audited financial statement, ITR, GST returns, bank statement, and other supporting documents for availing a personal loan.

However, the problem arises when you are missing out on any of the above-mentioned documents. The good news is that you can still apply for a personal loan. The only thing you need to do is to club your loan application with a family member who possesses all the documents listed above. 

  1. Credit Score

By looking at your credit score, which depends on your credit repayment history, lenders assess your ability to pay EMIs on time. If your existing liabilities are more than your current income, then the loan application might not be approved until you can prove otherwise.

However, by keeping your credit score above 750 and your fixed monthly obligations at 40% of the net monthly income, you may get the upper hand in the loan approval process. You may also get a higher loan amount and cheaper interest rates by clearing off most of your existing loans before applying for the personal loan.

Click here to read about ways to avoid loan rejections.

  1. Your Income

If you are self-employed without ITR and are applying for a personal loan, you have to prove that your income is above the threshold limit set by the lender. To ensure money is easily available for business purposes, many reputed lenders keep the threshold limit as low as INR 15 lakh per annum.

To see how much loan amount you are eligible for at present, use a personal loan eligibility calculator.

  1. The Stability and Nature of Your Business

Just like the stability of your income, the stability, legacy, and nature of your business are equally important. Lenders generally prefer lending to business persons who have a solid business plan, execution model, regulatory clearances, and have been in the market for long.

Businesses are as dynamic as the market. While some businesses are good at performing in all types of market conditions, some businesses are seasonal, in nature. If your business is seasonal, you may expect a little more scrutiny from lenders.

Hence, before applying for a personal loan, you should prepare yourself to prove that your business model is as solid as a rock.


If you are a self-employed professional with or without ITR, you may be eligible for getting a personal loan. However, the loan industry is quite dynamic. The rules and regulations keep on changing according to the requirements of the industry.

If you are wondering where to go next, open a personal loan eligibility calculator and see how much money you can get instantly to fulfill your dreams.