🧾 Personal Loan Documents: Salaried vs Self-Employed – What's the Difference?
When applying for a personal loan, the documentation process can differ significantly based on your income type—whether you’re salaried or self-employed.
Let’s explore the document checklist, and understand what makes them different for both groups.
🧑💼 For Salaried Individuals
These applicants have stable monthly income, so lenders seek:
Latest 3 months’ salary slips
Form 16 or Income Tax Returns (ITR) for last 2 years
Bank statements (6 months)
Employment certificate or offer letter
PAN card, Aadhaar, Address proof
📌 Bonus Tip: Salaried individuals from reputed companies or MNCs often get faster approval and lower interest rates.
🧑🔧 For Self-Employed Professionals or Business Owners
Self-employed applicants are assessed for business stability and cash flow, so they need:
ITR of past 2–3 years with computation of income
Business registration certificate / GST registration
Profit & Loss account + Balance Sheet (CA attested)
Current account bank statements (12 months)
Business address proof
PAN card, Aadhaar, and Address proof
📌 Note: Lenders may ask for additional documents depending on the industry or income volatility.
🔍 Key Differences at a Glance
| Criteria | Salaried | Self-Employed |
|---|---|---|
| Income Proof | Salary slips, Form 16 | ITRs, P&L, Balance Sheet, GST filings |
| Employment Verification | Offer letter, ID card | Business registration, trade license |
| Bank Statements | 6 months (savings) | 12 months (current + savings) |
| Processing Speed | Faster | Slightly longer due to financial vetting |
| Loan Limit & Interest | Higher eligibility | May vary with income & credit score |
🔎 Vizzve Financial Insight
According to Vizzve Financial, 63% of loan rejection cases for self-employed applicants in 2024 were due to incomplete or unverified income documents.
Their loan application engine now uses AI-based OCR tech to read financial statements and validate ITR mismatches, which has reduced document rejections by 40%.
💬 “Documentation isn’t just formality—it’s proof of financial health. Self-employed professionals need to be more proactive with bookkeeping,” says Rajeev Ranjan, VP – Retail Loans at Vizzve.
🙋♂️ FAQ – Frequently Asked Questions
Q1. Can a self-employed person get a personal loan without ITRs?
Not usually. Most banks and NBFCs require at least 2–3 years of ITRs. Fintechs like Vizzve may offer exceptions if digital income proof is available.
Q2. Which documents are common for both categories?
✅ PAN, Aadhaar, bank statements, and address proof are mandatory for all.
Q3. Do self-employed applicants get higher interest rates?
They might—depending on the stability and volume of declared income.
Q4. Can freelancers apply under the salaried category?
No. Even if you earn monthly, without being on payroll, you fall under self-employed classification.
Q5. How does Vizzve Financial make the loan process easier?
Vizzve uses AI for document verification, offers zero paperwork digital loans, and provides loan eligibility checks for both salaried and business owners.
Follow us on social media: Facebook || Linkedin || Instagram
Published on July 10, 2025 • By Benny
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed