Understand your home loan eligibility criteria?

Self-employment is on the rise in India, which is usually a sign of a nation’s push for self-reliance. But how good are your chances of getting a home loan if you are self-employed?

In the affordable housing segment, they are quite high.

What’s the loan approval process for the self-employed?

The self-employed normally do not have salary certificates. Some don’t have bank statements either. In such cases housing finance companies assess the loan applicant’s income by verifying their business status and going through their kaccha records. It should be noted that filing income-tax returns increases the chances of the loan getting approved.

What if the self-employed don’t file ITR?

In such cases, the lender does a general assessment of loan eligibility. If you have a good history of repaying loans, reputed lenders such as Grihum Housing Finance Limited will give you a home loan.

Does a lack of fixed income hurt the home loan chances for the self-employed?

Housing finance companies understand that the income of the self-employed is not fixed. There are some ways in which they could make their application stronger.

• Classifying multiple incomes as one: Borrowers could combine the income of their immediate family members like their mother or wife.
• Having them as co-borrowers: In this case, the borrower must involve them in repaying the loan.

Are co-applicants or multiple borrowers liable for EMIs?

Certainly. If a borrower includes Rs 10,000 from his wife’s salary as extra income, he must add Rs 5,000 or whatever applies to her EMIs. They could combine their incomes into one account, the main one. Then, they could set up auto-debit facility.

What about the tax benefits for multiple borrowers?

As multiple borrowers, the family could share the tax benefits too. However, they must first register themselves as co-applicants. Each co-owner’s share in the loan ownership ratio determines the division of tax exemption.

Do home loan lenders cater to those in the higher age group?

Of course, they do, but with certain restrictions. A 50-year-old will not be eligible for a Home Loan with a 20-year repayment period. In such cases, lenders choose one between loan tenure and retirement age, whichever is lower.

People in their 50s likely have big savings. They can use them to make a larger first payment on a home. But as they near retirement, it’s important not to invest their entire savings in a property. The golden rule: be prepared for unforeseen expenses.

Conclusion

For any customer, young or old, choosing the right lender is important. Grihum understands each borrower’s needs. It has easy paperwork. Having industry-acclaimed analysts on our board, we pride ourselves on being a lender and guide you can rely on.