Personal Loan for Gig-Economy Workers: How Drivers, Delivery Partners, and Freelancers Can Prove Income & Get Approved

According to reports, India’s gig worker population is estimated to be around 12 million. However, unlike salaried professionals, proving your income and getting approved for a personal loan may not seem hassle-free.
Traditional banks often look for steady salary slips and fixed income documentation before approving a loan. Since gig workers often have irregular income, it can make lenders hesitant. But that doesn’t mean you are barred from borrowing money. Today, gig workers can apply for a personal loan online with just a few clicks, making the process fast and convenient.
The good news? You can apply for personal loans that are flexible and can be tailored to your unique income situation. There are also instant personal loan online options available, offering quick approval and easy access to funds for gig workers. This blog decodes expert tips to improve your chances of loan approval, the easy way!
 

How Can Gig Workers Prove Their Income?

So you are a gig worker trying to prove your income and feeling stuck? Here are the key things you will need to get started -

1. Bank Statements

Most gig workers receive payments via digital methods like bank transfers or UPI. Your bank statements over the past 6-12 months are your best proof of income. Show consistent deposits that align with your typical earning pattern.

Also Read - How Alternative Data (Rent, Bills) Impacts Your Credit Profile 

2. Tax Returns (ITR)

Even if you are a gig worker and not salaried, filing your ITR is strong proof of your income. Even if your income fluctuates, having a filed ITR highlights that you are a compliant taxpayer.

3. Invoices and Payment Receipts

Freelancers and gig workers often generate invoices. Keep these organised and ready to bolster your case.

4. Business or Work History

Think of it as your story! How long have you been working, and how consistent has your income been?
If you have been working steadily for months or years, this history adds credibility and can support your income claims.

5. Alternative Income Proofs

Alternative income proofs, like rental agreements or even client testimonials, can help. For example, if you receive regular payments from a trusted client, a letter from them confirming your work can serve as supplementary proof.

Tips to Improve Your Chances of Loan Approval

Manoj has been working as a gig worker in Delhi. He delivers food and does odd jobs on the side. Manoj has been saving up for a new bike and thought it was time to apply for a loan to make things easier.
But, like a lot of gig workers, he was worried about whether his application would go through. If you are in his shoes, here are a few simple tips that can make a big difference in getting your loan approved. To apply for a personal loan, you need to follow a straightforward process that includes meeting the personal loan eligibility criteria set by lenders, such as age, employment type, and credit score.

1. Maintain a Good Credit Score

Basically, your credit score is the information that lenders consider to determine your creditworthiness. It is like a report card in the financial world.
Your goal is to maintain the high score as much as possible. Now, to do this, you need to -
•           Pay your bills on time, whether it's your phone bill or credit card payments
•           Try to keep your credit utilisation low. This means don’t max out your credit cards.
•           Steer clear of multiple loan applications in a short span.

2. Pre-Emptively Organise Documentation

Before hitting that “apply” button, gather all requisite papers -
•           Identity proof
•           Address proof
•           Bank statements
•           Invoices
•           ITR filings
•           Any other supporting documents
Having these ready saves time and makes your application process smoother. Use an instant loan app that allows you to upload everything at once, making the personal loan application process hassle-free.

3. Choose the Right Lender

Do some research to find lenders who understand your type of income. Some financial institutions have tailored products for gig workers.
Pro Tip - Read reviews and compare interest rates to make a good deal.

Get Approved for a Personal Loan as a Gig Worker!

If you have been consistent with your work, highlight that stability. Demonstrating a regular income can be very powerful, even if the money varies from month to month.
Moreover, think about keeping a small savings account handy. This indicates that you are financially responsible. It assures lenders that you can cover the unexpected expenses.
Need a quick personal loan? Check your eligibility right away and apply for Hero FinCorp’s instant loan curated for your financial needs, and get instant access to funds! Once approved, the loan amount is credited to your bank account instantly. Personal loans are typically repaid in fixed monthly instalments, also known as personal loan EMI, over a chosen repayment tenure. Flexible repayment options are available, allowing you to select a repayment tenure that best suits your financial situation.

Frequently Asked Questions

How much personal loan can I get as a gig worker?

You can get a personal loan of up to ₹5 lakhs. However, you need to meet a minimum monthly income requirement of ₹15,000 and showcase a stable credit history.

I want ₹1 lakh loan urgently. What should I do?

You can easily apply for ₹1 lakh loan on the Hero FinCorp loan app. We offer an instant loan, given you fulfil the eligibility criteria.

How to check personal loan eligibility for a freelancer?

You can easily calculate your loan eligibility and the precise amount you qualify for by using Hero FinCorp's online calculator.