Getting a home loan can be a tedious process especially if you are a business owner, a self-employed professional or even a startup employee. Many lenders are skeptical of approving home loans of such individuals since they have unsteady incomes.
But in recent years, many banks and financial institutions have come up with home loan plans crafted specifically for the self-employed individuals, however, the interest rates may be slightly higher but that also varies from lender to lender. If you are self-employed and are planning to apply for a home loan, these key points will assist you in ensuring approval.
Good IT returns
Your lender is most likely to check your IT returns documents for the past two years in order to verify your income. Most financial institutions generally look into past two years as they account your average income of 24 months for loan validation. You should apply for a home loan when your business is doing really great.
Precise profit and loss statement for current fiscal year
Good home loan eligibility
When it comes to self-employed home loan applicants, lenders assess loan eligibility by taking into account the applicant’s net profit along with other considerations such as total income, the business use of their home and add depletion and depreciation.
Be a safe candidate
So, what does it take for a self-employed applicant to become a safe candidate for home loan approval? You should be able to put a high down payment on the purchase, must have good amount of savings along with a high CIBIL score (750 and above). If you fulfill these criteria, you are a safe candidate from a lender’s perspective.
Other than these factors, many financial institutions also approve home loans for applicants who have a steady income along with previous records that suggest their good credit behaviour and willingness to repay the loan.
While you can get a home loan, you should keep in mind that the interest rates can be higher and some lenders may not offer fixed rate of interests.
FAQs
Q1: What distinguishes ICICI’s Smart Financing Solutions from traditional business loans?
A: ICICI’s Smart Financing goes beyond funds, offering holistic financial empowerment, resources, and ongoing support for sustained growth.
Q2: How can businesses access ICICI’s digital platforms for the loan application process?
A: Businesses can utilize ICICI’s online platforms for a streamlined application process, accessible through the official website or mobile app.
Q3: Can ICICI Smart Financing Solutions be customized for specific industry?
A: Yes, ICICI tailors its smart financing solutions to meet the unique requirements of various industries, providing customized financial support.
Q4: How does ICICI contribute to financial literacy through Smart Financing?
A: ICICI offers resources and tools as part of Smart Financing, enhancing financial literacy and aiding businesses in making informed decisions.
Q5: Is there ongoing support from ICICI after securing a loan through Smart Financing?
A: Yes, ICICI provides ongoing support, including guidance, resources, and solutions tailored for the evolving needs of businesses post-loan approval.
