{"id":29769,"date":"2023-08-28T15:40:23","date_gmt":"2023-08-28T15:40:23","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=29769"},"modified":"2024-07-23T13:36:35","modified_gmt":"2024-07-23T08:06:35","slug":"self-employed-and-looking-for-home-loan-know-the-eligibility-criteria-process","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/self-employed-and-looking-for-home-loan-know-the-eligibility-criteria-process\/","title":{"rendered":"Self-Employed And Looking For Home Loan? Know The Eligibility Criteria & Process"},"content":{"rendered":"\n

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\u201cHome is where the heart is.\u201d Be it a salaried employee, a business owner, or a self-employed professional, everyone aspires to be a proud homeowner and wants to have a place that\u2019s truly theirs.<\/p>\n\n\n\n

Of the three, there\u2019s often confusion about the eligibility criteria and application process for the self-employed category. Self-employed individuals may include medical practitioners, chartered accountants, artists, musicians, lawyers, and other professionals who practice their profession under their own name.<\/p>\n\n\n\n

The three most common questions they have around housing finance are:<\/p>\n\n\n\n

    \n
  1. What is the home loan eligibility for self-employed?<\/li>\n\n\n\n
  2. What documents are required?<\/li>\n\n\n\n
  3. How to apply for a home loan for self-employed?<\/li>\n<\/ol>\n\n\n\n

    To find answers to all these questions, keep reading.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    Home Loan Eligibility for Self-Employed<\/strong><\/h2>\n\n\n\n

    As a self-employed professional, you cannot produce salary slips, P&L accounts, or even a slew of steady earnings pouring into your bank account each month. This may make you feel less eligible as lending institutions pour over financial documents before granting a loan.<\/p>\n\n\n\n

    It’s true they do, but nowhere do they want your paperwork to match that of a salaried employee or a business professional. In fact, a legit lending institution will have fleshed-out eligibility criteria designed specifically for home loan<\/a> for self-employed.<\/p>\n\n\n\n

    Refer to the table below to understand what we are trying to say in detail.<\/p>\n\n\n\n

    Home loan eligibility for self-employed<\/strong><\/td>Remarks<\/strong><\/td><\/tr>
    Age <\/td>All lending institutions offer home loans for self-employed individuals that fall within an age range. Do check the age range of your lender before applying.<\/td><\/tr>
    Number of dependents<\/td>Your lender might ask you about the total number of dependents you support on your income. They may not have any official cap, but it can be a marker to gaugethe eligibility forhome loan for self-employed.<\/td><\/tr>
    CIBIL score<\/td>A healthy CIBIL score might be a prerequisite for certain lending institutions. This score ranges between 300 to 700 points. However, having a lower score does not mean you cannot apply for home loan for self-employed. You can, except you may qualify for a relatively higher ROI in return.<\/td><\/tr>
    Financial profile<\/td>One of the key home loan eligibility criteria for salaried employees is their financials. The same goes for self-employed individuals. To boost your chances, you must reveal your income sources. Here, you can also include any.  <\/td><\/tr>
    Debt profile<\/td>Same as the home loan eligibility criteria for salaried employees, self-employed individuals must also inform the lender about ongoing loan EMIs, if any. Although a high or low CIBIL score will indeed act as a reflection of your repayment history and creditworthiness, you transparently talking about it will only boost your chances of getting a loan approved at affordable ROIs. <\/td><\/tr>
    Educational history<\/td>Not all, but a handful of lending institutions might request your educational documents in addition to your personal details. Now, this is not a mandatory home loan eligibility criterion for self-employed, but it might happen in special cases when lenders are unable to make up their minds.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Typical Home Loan Documentation Requested by Several Lenders <\/strong><\/h2>\n\n\n\n

    You can divide home loan paperwork for self-employed individuals into three broad categories. These include:<\/p>\n\n\n\n

    Identity proof (Any 1)<\/strong><\/h3>\n\n\n\n
      \n
    1. PAN card<\/li>\n\n\n\n
    2. Aadhaar Card<\/li>\n\n\n\n
    3. Passport<\/li>\n\n\n\n
    4. Driving license<\/li>\n\n\n\n
    5. Voter ID card<\/li>\n<\/ol>\n\n\n\n

      Address proof (Any 1)<\/strong><\/h3>\n\n\n\n
        \n
      1. Aadhaar Card<\/li>\n\n\n\n
      2. Driving License<\/li>\n\n\n\n
      3. Passport<\/li>\n\n\n\n
      4. Utility bills<\/li>\n\n\n\n
      5. Post-paid mobile bill<\/li>\n<\/ol>\n\n\n\n

        Income Proof<\/strong><\/h3>\n\n\n\n
          \n
        1. Last 3 years\u2019 IT returns<\/li>\n\n\n\n
        2. Last 2 years’ audited P&L account, if available<\/li>\n\n\n\n
        3. Latest balance sheet<\/li>\n\n\n\n
        4. Practice license or letter of incorporation, in case of a partnership<\/li>\n\n\n\n
        5. Last 6 months\u2019 bank statements<\/li>\n<\/ol>\n\n\n\n

          Property papers (depending on what the lender asks for)<\/strong><\/h3>\n\n\n\n
            \n
          1. Sales deed or stamped agreement<\/li>\n\n\n\n
          2. Possession certificate<\/li>\n\n\n\n
          3. Occupancy certificate<\/li>\n\n\n\n
          4. NOC of developer or the housing society<\/li>\n<\/ol>\n\n\n\n

            <\/p>\n\n\n\n

            How to Apply for a Home Loan as a Self-Employed Individual?<\/strong><\/h2>\n\n\n\n

            Once you\u2019ve checked the home loan eligibility<\/a> criteria for self-employed on the desired lender site and compiled the right paperwork, it\u2019s time to apply for the loan. Thanks to rapid digitalization, most renowned lending institutions allow potential borrowers to start their application process online. This quickens the process of verification and sanctioning.<\/p>\n\n\n\n