If you are self employed, you may think that you can’t get a loan from a money lender; this however is not the case. When it comes to taking out a loan, you are simply going to have to show proof of income; as long as you can prove to the money lender that you make four times the amount you are asking for, you are likely going to be approved for that loan you wish to take out. So, even if you do work for yourself, it is highly possible for you to get a cash loan with a lender, and find great terms on the loan as well.
Let’s say if you make $2500 a month, you can get a cash personal loan. Not only does this provide the licensed moneylender with a simple way to calculate your annual income, they are going to show you how much you are approved for based on income. A licensed lender simply wants to know what you want to borrow the funds for, and that you can repay them. As long as you have a steady source of income, which you can prove to them with pay stubs, or through a bank account a licensed money lender is going to work with you and will approve you for the loan funds which you want to take out. Should they not have a proper license, you might not get this luxury as a borrower.
CPF or NRIC statements for up to 12 months might be required when you do go in to apply for the loan. Basically this is the manner in which a lender can see how much you earn,and also know this is steady income. They want to know that you can pay them back, and if you can prove the income you have made for a year, it is going to be easier for a lender to approve you for the cash you wish to take out with them. Make sure you inquire with a few lenders prior to taking out the loan; sometimes you can find less stringent requirements, or you may find a lender that will not require proof of income for so many months prior to approving you for the loan. So, as you would with anything else, when you shop and compare a few lenders, you can easily find the one that is going to work with you as a borrower taking out a loan with them.
A tax notice and 2 years’ income may be required for those who are self employed. The reason being is that you need to be stable as a business; a lender is going to want to see this. They want to know you are not a start up, or just getting started with a new business. They want to know you have a steady client base, and that you will have this going forward as well. When you have at least 2 years of income to show them, they can at least rely on this information to project you are going to earn the same amount, and can repay the loan you are taking out, when you move forward with the lender. Again, when you compare a few lenders, you might find some will not require this long income proof, in order to approve you for a loan. So, make sure you ask questions, and compare information, so that you can work with a lender that will provide you the terms you can deal with, and can actually repay on, if you do choose to take out the loan with them.
When it comes to borrowing as an employee versus an individual who is self employed, you are going to have to account for income, and steady cash stream, for longer periods of time if you are self employed. It is basically the only way a lender can secure themselves and avoid so many defaults on persona loans which they do provide to borrowers. So, make sure you know the terms, compare the lenders, and that you take your time to prepare all the required documents, in order to ensure you are going to be approved for the loan amount you do desire when you do borrow with a particular lender.