As the Indian economy grows, there is a legion of self-employed people who do not have a 9-to-5 job. This army of entrepreneurs, freelancers, qualified professionals, traders, etc., has various doubts regarding their eligibility and qualifications to avail of a home loan in India. However, an increasing number of banks and other financial institutions are introducing home loan products, keeping the self-employed person’s specific needs in mind.
To learn more about the home loan process for self-employed individuals, keep reading.
Self-Employed Home Loan Eligibility Criteria
Like the salaried class, the self-employed are entitled to apply for a home loan. The home loan eligibility for self-employed differs amongst lenders; nonetheless, the general conditions are stated below.
|Age||23 – 70 years|
|Income||Minimum Rs. 1.5 lakh|
|For co-owned property||All co-owners must be co-applicants|
Documents Required For Home Loan
The following is a list of documents needed to obtain a home loan.
- Identity Proof: PAN card, Aadhar card, Voter ID
- Duly filled loan application form
- Address proof: Aadhar card, Utility Bills (electricity, water, telephone, gas, etc.)
- Income Proof: Last 2 ITR, last two years’ P&L statement and balance sheet, six-month bank statement, etc.
- Property documents
What Are the Features of Self-Employed Home Loans?
Some of the attractive attributes to self-employed people when applying for a home loan are listed below.
- Simple and Convenient Loan Procedure
The entire home loan process is straightforward and transparent. Applicants must first assess their eligibility before selecting a loan amount and calculate the EMI based on duration, interest rate, and other considerations. They can then complete the loan application form and provide the required documents for a home loan.
Applicants do not need to visit the bank branch even once during the procedure, and it may be completed at any time from the comfort of their own home.
- Minimal Documentation
The applicants are not required to produce any further documentation to acquire the loan. However, for self-employed individuals, the list of documents is detailed above.
- Quick Loan Disbursal
Since the entire loan procedure is completed online, from loan application to document verification, qualified applicants receive instant loan disbursements.
- Affordable Housing Benefit
First-time homebuyers can assess their eligibility for the PMAY affordable housing initiative. This qualifies the applicants for a home loan subsidy of up to Rs.2.67 lakhs.
- Easy Eligibility and Long Tenure
Self-employed individuals who do not have income proof but have a good credit score and payback history can easily qualify for a house loan. You can also add an earning member of your family as a co-applicant to boost your eligibility. Additionally, the maximum tenure to repay loan amount for qualified applicants is 25 years, making repayment more manageable.
With the booming economy, more self-employed people plan to buy the home of their dreams. Banks and other financial institutions are also assisting in closing the financing gap by providing appealing loan offers. Moreover, self-employed professionals can benefit from the many advantages listed above to make the overall loan procedure pleasant.