A home loan, often referred to as a mortgage, is a sum of money borrowed by an individual from a bank or other lending institution. The borrower must repay the loan amount plus interest in Simple Monthly Installments, or EMIs, over a period of time that can vary from 10 years, depending on the loan type.

Everyone in India desires to have a good job, earn a high salary, or establish their own business and realize their lifetime ambition of owning a property. Owning a home, however, is becoming more difficult as the cost of land and property rises. If you work for a reputable company and earn a good annual salary, you should have no trouble getting a home loan. But what about people who work for themselves?

Home loans for self-employed people are just as lucrative as those for salaried workers. However, most consumers are unaware of the eligibility criteria, documentation requirements, and other distinctions here between two types of mortgage loans. Don’t fret; we’re here to clear up any confusion or doubts you may have.


Eligibility of Home Loan

Many self-employed people are concerned about the rise of inspection they would encounter as house loan applicants. After all, unlike salaried workers, they may not have a consistent source of income. You’ll be pleased to learn that self-employed house loan qualifying has become more lenient in recent years. Their loan app’s success, like with all applicants, will be determined by numerous of factors:

  • Age
    Having more years on your team can help you get better home mortgage conditions from your lender. As a consequence, younger self-employed applicants have greater qualifications and might profit from a company longer.
  • Income
    For self-employed people, establishing a consistent income source is a big part of the home loan eligibility criteria. Usually, your lender will ask for three years’ worth of tax filings, and also revenue, profit, and balancing statements for the firm.
  • Business continuity
    Your home mortgage qualification is greatly influenced by proof of your bank’s existence and income. A successful, long-running, and profitable business is an indication of good home loan repayment capability.
  • Creditworthiness
    Before signing off on the home mortgage, a lender looks to see if you have other loans, debts, or missed payments. Your credit rating can help you determine your credit.

What is a Home Loan, but Why Should You Get One? What You Need to Know About Getting a Home Loan. The eligibility can be determined by a home loan eligibility calculator. 


Documents Required to Home Loan

The following list of self-employed home loan documents will come in useful when applying for a housing loan, even if you’re an applicant or a co-applicant:

  • Aadhar card, passport, identification card, phone bills, ration card, election card, or any other statutory authority certificate
  • PAN Card, Passport, or any other proper documentation from a legal entity can be used as age verification.
  • Income proof includes proof of growing business, tax returns from the previous three years, auditor balance sheets, and account bank records from the previous 12 months.
  • Property Documents – A copy of a property acquisition agreement
  • Educational Qualifications – Documentation of a certificate and degrees. 


Here’s where you can find out about the current interest rates on home loans

Keep in mind, though, that interest rates vary from time – to – time. You, too, as a self-employed applicant, have had the choice of picking between a fluctuating and a fixed interest rate. Permanent interest rates, on either hand, are more expensive and less prevalent than floating interest rates. Whenever the PLR rates rise, the loan rate is adjusted appropriately.

The rest of the terms, such as the duration of the new mortgage and the amount of money a self-employed candidate may borrow, are standard industry practice:


It is possible to inflict a sentence of up to 20 years.

The amount of a home loan is decided by variables such as age, income, repayment capacity, credit score, and etc.

If you’re financing 90% of the estate’s worth, you can typically get a home equity loan up to Rs. 30 lakh. At 80 percent, this figure rises to up to Mr. 75 lakh, and at 75 percent, it rises to more than Rs. 75 lakh.



Make sure all of your paperwork, notably income tax returns and company ledgers, are up to date and ready before applying for a loan as just a self-employed individual. When your business is doing well, you have no substantial debts, and your credit score is 750 or better, it’s a great time to apply for a home loan. To improve your chances, take the services of a salaried founder.



By Nithya

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