Products
Investing
Resources
Credit Cards
Tools & Calculators
Support
A Housing loan for self-employed is meant to provide financial assistance in the purchase or construction of property. Self-employed individuals, like businessmen, freelancers, traders, shop owners, entrepreneurs and others can avail a home loan as easily as salaried individuals. Mortgage companies for self-employed have made the home loan application process easier than ever, offering fast approvals and quick disbursals to loan seekers.
We discuss everything related to self-employed mortgage loans, from the eligibility criteria to documentation and best offers to the application process. Stay tuned and find the best home loan deal for yourself.
Housing mortgage for self-employed people come with unique features. The highlights of the loan are discussed below in detail.
As per the RBI’s latest home loan guidelines, lenders can cover 75%-90% of a home purchase for self-employed borrowers. The down payment obligation for self-employed individuals, thus, ranges between 10%-25%.
Take a look at the financial coverage offered by lenders on different home loan amounts:
Lenders offer home loans at fixed or floating rates of interest. Home loans require a borrower to pledge the concerned property with the lender until the loan is fully settled. Hence, these are secured loans. As a result, lenders are willing to offer affordable rates of interest, usually starting from 8.4-8.5% p.a.
Home mortgages for self-employed can be settled in as many as 30 years. The tenure offered by a lender depends on a number of factors, such as the loan amount, the borrower’s financial strength and others.
Self-employed individuals can repay the loan in equated monthly instalments (EMIs). Lenders also provide prepayment and foreclosure options to ensure faster settlement of loans. However, banks charge a certain fee for extending prepayment/ foreclosure services.
Home mortgages for the self-employed are available to self-employed professionals (such as doctors, lawyers, CAs etc.) as well as self-employed non-professionals (such as freelancers, vendors, drivers and others).
Lenders accept digital as well as offline applications for home loans. Further, loan seekers can apply individually or jointly at a suitable lender. Housing loans for self-employed are usually approved within a few hours to a few days.
Home loan borrowers can claim up to ₹2 lakhs and ₹1.5 lakhs on interest and principal repayments on their loan. The Income Tax Act of 1961 offers these benefits to home loan borrowers under the concerned sections.
Self-employed borrowers come from different financial backgrounds. Upon analysing every candidate’s financial statements and income records, lenders offer tailor-made home loans to cater to the varying needs of their wide customer base.
Home loan for self-employed eligibility depends on a number of factors. Take a look at these criteria below and increase your chances of approval.
The above-mentioned eligibility criteria are established by home loan documents required for self-employed borrowers. While different banks may demand different documents, a general set of documents are listed below:
Urban Money provides quick self-employed mortgage loans to its customers from the top banks and Housing Finance Companies (HFCs). Take a look at the best interest rates available on home loans below:
| Bank | Interest Rate (p.a.) | Type of Interest Rate Available |
| HDFC Bank | 8.75%-9.40% | Floating |
| SBI Bank | 9.15%-9.35% | Floating |
| Axis Bank | 9.10%-14% | Floating and Fixed |
| Kotak Mahindra Bank | 8.80%-9.60% | Fixed and Floating |
| IDFC First Bank | 9.25% onwards | Floating |
* The above table highlights the applicable interest rates on the banks’ standard/regular home loan products. The rates may change with a change in the type of home loan.
Most mortgage companies for self-employed require a minimum age of 21-23 years at the time of application. While the maximum age is capped at 60 years at the time of maturity.
Different banks suit different borrowers, depending upon their financial situation. Interested borrowers can check out the complete list of banks offering home loans for self-employed at Urban Money’s website.