What is Home Loan?
A home loan is a type of secured loan taken by those who want to purchase or build a house. Banks and NBFCs offer home loan to those who fit in their criteria. Home loans come with longer tenures as long as 30 years. Banks and NBFCs offer 80% to 90% of the amount required in home loan. The interest rate, EMI, tenure, loan amount is decided on the borrower’s CIBIL score, ability to repay the loan, age and other factors.
Home Loan For Self Employed:
People many times are not sure about taking a home loan or are scared about it as it’s a huge and long financial commitment. And those who are self employed professionals, they are even more concerned because they live under the notion that banks and NBFCs do not give loan for self employees. Everyone deserves their own house to live in irrespective of their profession. That’s why banks and NBFCs offer home loan for self employed as well. They require a different set of documents and their eligibility criteria differs than the salaried people. But they do get a home loan.
Types Of Home Loan Self Employed Can Avail:
- Home Purchase Loans
- Home Loan for Construction
- Home Loan to Purchase a Piece of Land
- Home Loans for Extension/Renovation
- Home Conversion Loan
- Balance Transfer Home Loan
- NRI Home Loan
- Pradhan Mantri Awas Yojana
Eligibility Criteria For Self Employed To Get Home Loan:
- Age criteria: The minimum age of borrower should be 25 years and maximum 65.
- CIBIL score: A strong CIBIL score of minimum 750 is required.
- Income: A minimum income of Rs. 5,50,000 per year is expected.
Document Required For Self Employed To Get Home Loan:
- Neatly signed and filled home loan application form
- Passport-size photographs
- Statements of investments (if any)
- Copy of plan approved for the proposed construction/extension (in case of applying for home loan for extension)
- Cost estimation or valuation report from the bank’s (or finance company’s) panel CA
- Allotment letter of housing board/NOC of the society/builder etc.
- Bank statements of last 6 months from application date
- Identity and signature proof – Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- Address Proof – Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
- Age Proof – Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
- Valuation/cost estimation report from evaluator approved by the NBFC or Bank
- Property papers with OC and CC
- Copy of challans proving that Advance Income Tax has been paid.
- Copy of ITR/Assessment Orders of 3 years.
- Business proof (registration of business)
- Bank statements of last one year
*The eligibility criteria and list of documents differs from bank to bank. The above given list is generic, not specific.
Now that you know how you can get a home loan, why don’t apply for one right away? Click here.