Self Employed Loans: Lending Money To Money Makers Too

by Marsha Claire - Date: 2007-04-13 - Word Count: 543 Share This!

We often misunderstand business to be that solution that will keep our bank accounts fraught at all times. True, but not always. Self-employed individuals who start their own businesses or do it in partnership also need that additional income to support their personal and business requirements. But since there are business loans for business demands, here come Self Employed Loans to cater to personal requirements.

Self-employed individuals are responsible for their profits and losses unlike employees working in an organisation. They have no one to depend on in case their profit margin goes below the expected; they also have employees to pay. You and I on the other hand have a regular paycheque we can turn to irrespective of the turnover of the company. This is why Self Employed Loans are so essential.

Self Employed Loans are usually offered as secured loans, though unsecured versions also exist. In Self Employed secured Loans individuals usually offer collateral in the form of their homes or even their business to guarantee repayment of the borrowed amount. This is when lenders offer larger loan amounts, lower interest rates, extended repayment terms and flexible options like:
Underpayment: Here, borrowers pay amounts that are smaller than what is actually expected according to the repayment installment due. This can be opted for when their profit margin goes below average.
Overpayment: With this option, borrowers pay amounts higher than what is expected, owing to a large profit gained that month.
Payment holiday: Borrowers can skip a monthly installment, if the profit margin recedes greatly. This option is allowed only if a borrower has shown excellent and prompt repayments in the past.

In case of Self Employed unsecured loans, due to the absence of collateral, firstly lenders are very hesitant to grant the loan; secondly they offer smaller amounts, higher interest rates and stringent loan terms and conditions. Usually these loans are difficult to get approved because of the underlying heavy risk.

Self Employed Loan takers can put this money to use in various ways - for a medical emergency, children's education, clearing pending bills and payments, to make home improvements and such other essentials. This money can also be used to take a needed holiday, buy a car or even a home. It depends on you to see to the need of the moment.

Individual consultants, independent contractors, proprietors and other autonomous businessmen usually take Self Employed Loans when faced by financial crises. The best part of these loans is that they do not require a credit check, allowing those with bad credit to avail them too.
Self Employed Loans are usually granted for amounts ranging between 3000 and 250,000. This range climbs with high-value collateral.
A typical Self Employed Loan term varies between 10 and 30 years.
The interest rate range for these loans vary between 10.9% and 27.60%. Once again, offering high-valued collateral or a reputable repaying capacity can lower this rate.
Self Employed Loans require you to make a down payment to initiate the loan proceedings. This payment is usually 20 to 40% of the loan amount.

These are some important things you need to know about Self Employed Loans. The other minutiae are up to you find out. Shop around for necessary information in the right places and you'll get yourself a good deal!

Related Tags: education loans, payday loans, unsecured personal loan, bridging loans, self employed loans, best secured loans

Marsha Claire is offering loan advice for quite some time. To find Self Employed Loans, Bridging Loans, Payday Loans, Education Loans, Best Secured Loans, Unsecured Personal Loan visit

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.

Recent articles in this category:

Most viewed articles in this category: