There are many people who have carved a niche for themselves in the business world by setting up their own enterprise. We can take the example of proprietors, independent consultants, contractors, private lawyers and other such people. They have to depend on their own diligence and expertise to earn money. There is no such thing as a regular income for them. There is a slight hitch that such people encounter in their life. When they want to fulfill some big-budget endeavor, they might not get loans easily owing to their unsure income. Now that self employed loans have entered the lending word and firmly established themselves, such hitches have been done away with.
Self employed loans are loans that are advanced to self employed people for funding their personal ventures. They may take the loan to provide monetary backing for their home improvement plans, weddings, holidays, debt consolidation, medical and education expenses and any other purpose.
Self employed people can choose from two options under self employed loans depending upon the kind of income proof they are providing:
- Low doc self employed loan- It requires the applicant to provide details of his tax returns, credit report and verification of money on hand for the down payment. In some cases, a letter from the applicant’s accountant is enough.
- No doc self employed loan- The applicant does not have to show any audited accounts for verification. Only a self-certification is enough. Self-certification is a document which contains the personal declaration of the applicant’s income.
Self employed loans are available for an amount in the range of £3000 and £250,000. Down-payment is mandatory when these loans are concerned. The usual rate is 40% but a good credit rating can help bring it down to 20%. Repayment term would last for a period between 3 and 25 years.
Self employed loans are loans that allow self-employed people to fulfill their financial aspirations. They also take the irregular income flow of their clients into consideration and allow flexible repayment options like underpayment, overpayment and payment holidays. They do carry high interest rates but a thorough comparison of loan quotes can help find lower rates.
Self-employed loans are available to self-employed people for a variety of purposes. Based on how the income proof is provided, there are two types that an applicant can choose from- a low doc self employed loan and a no doc selfemployed loan. Flexible repayment options are also provided.
Ashley P Lewis is a debt consolidator and advisor and has been dealing with various finance programs. If you want to know more about Loans UK, Personal Loans UK, Secured Loans, Loansx you can visit http://www.loansx.co.uk/