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Posted on Monday February 21st, 2022

Do you believe in common perception that self-employed people never gets an easy approval on home loan? But to your surprise, lenders lend to self employed with a predefined set of terms and conditions. Every lender has some specific set of criteria which a borrower has to fulfill to get their home loan approved. Self employed individuals such as doctors, lawyers and businessmen can Apply For Home Loan easily.

There are number of lenders in the market who offer customized loans according to your needs and budget. Lenders will evaluate your repayment capacity bases upon income tax returns and balance sheets of your business to approve your loan application. However, home loan is a biggest commitment so lenders feel risky to approve an application of self-employed person as he/she doesn’t have a well defines source of income.

In this blog post, we have mentioned some steps which can ensure lender to approve your home loan applications which are listed below:

Add a co-applicant to your application: If you are self employed then adding a co-borrower will strengthen up your eligibility and can help you to get an easy approval on home loan. When you add a co-borrower in your loan application, lender may get confident to lend you a desired amount as lending institution will now has a two person to repay the loan amount.

Make co-borrower a co-owner of home: If co-borrower who applied for a loan with you also be a co-owner of your home, then your chances to get loan approval increases automatically because lenders approve home loans to such applicants quickly but you need to fulfill the prescribed eligibility criteria for that.

Have a guarantor with you: When you Apply For Home Loan Online or offline, try to have a guarantor to ensure your home loan application get approved by the lender as it reduces the risk factor of the specific lender about the repayment of loan quantum. A loan application signed with a guarantor will assure the lender about the repayment because if in some situation, borrower fails to repay the loan, lender will recover the outstanding amount from the guarantor.

Well, the eligibility criteria and norms may vary from lender to lender but to get risk-free, every lender will ask some basic set of documents from a self-employed individual while availing a home loan which is mentioned below:

Identity Proof

Bank statements of current and saving s account

PAN card

Educational qualification or degrees.

Address proof.

ITRs of last two years.

Proof of business Entity.

Audited financial statements of business by a chartered accountant.

Everyone dreams of having their own dream house in which he/she can live with his/her beloved ones. When a person gets stable with his/her earnings in business or has enough savings to pay a down payment for a home loan, then getting an approval for a loan against home is not a big concern for you. Hence, following the above mentioned steps, one will surely get an easy approval on home loan.

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Posted on Friday January 14th, 2022

Buying your own house is one of the biggest financial goals you will ever be a part of because in our country, a loan against home can be offered up to 25-30 years. Therefore, one needs a lot of patience and determination when it comes to Apply For Home Loan. One of the main reasons behind the longer tenure of home loan in India is due to sky rocketing prices in real estate business.

Of course, home loan is not a cheap deal as it cost you in lacs or even in crores. This big chunk of money is not an easy task to arrange at such an early age of 25-30. Hence, most of the individuals take the help of home loan in our country to fulfill the wish of owning a home. Since, it is an affair of huge amount and at early age you are not able to accumulate such wealth, so we have listed few things to consider before making a budget for home loan.

Well, following such thing, one must be able to save enough funds for the down-payment. Let’s have a look on those tips:

Plan a Budget: It is the thing that can be easily learnt from your parents. Planning a budget will help you to understand your spending habits in a better way. Start it by writing down your monthly earning following the list of your fixed expenses like electricity bills, water bills, groceries, rent etc. In the end, you can conclude what you are left with and how much you can save from your monthly income.

Start an Investment plan: Sometimes, savings are not the only solution to your long-term financial goals. If you are working hard to earn a smart salary or profits from your business, then let your savings work hard too. Try to invest in mutual funds, equity funds or other government securities to earn a good amount from there too. As long as you give it a time frame, like 3-5 years, you can expect great returns and profits from your investment plans.

Improve your Credit Score: Always be aware of your Credit Score as it is very important to secure any loan in your future. It is necessary to pay your credit card bills and existing loan EMIs on time. When your credit score is above 750+, the lending institutions term you as a trustworthy borrower and hence will allow you to secure the home loan at lowest interest rates. Therefore, keep an eye on your credit score as any sort of discount matters, as it saves you a lot of money on interest.

At the end, we can say that purchasing a home is a big decision and needs a lot of money. Therefore, if you don’t have enough funds for the down-payment of home loan, then it’s a right time to start planning a budget, investment plan or savings. When you feel ready, just Apply For Home Loan Online or offline at ShubhBank to borrow a right deal to buy your own dream house.