By Author: Anil Patel
It has consistently been a little difficult for the self-employed individuals to avail of home loans when contrasted with a salaried professional. Irregular source of income and lack of proper documentation to support their financial status, are some of the main concerns.
Most banks have a standardized procedure for an affordable home loan. However, the lenders refrain from sanctioning the loans until they are completely sure about the repayment capacity of the applicant.
If you are one of those self-employed professionals who have a good source of income but lack certain documents, then you might want to look for private financial companies. Private money lending firms do offer self employed home loans with or without documents.
Self-employed individuals can get home loans no sweat as those with salaries or regular incomes. Moneylenders have structured home loans explicitly custom fitted to meet the prerequisites of the self-employed. When all is said in done, there are two classifications of self-employed people: PROFESSIONALS & SELF-EMPLOYED/NON-PROFESSIONALS.
· PROFESSIONALS comprise of doctors, legal advisors, CAs, MBAs, and so forth, who are educationally qualified in their area and have set up their businesses.
· SELF-EMPLOYED/NON-PROFESSIONALS comprise of merchants, contractors, commission agents, etc. and are not educationally qualified in their area of business.
But the rate of interest tends is comparatively higher as compared to the standard interest rates offered by banks. That is because the home loans they give are high-chance loans and you are getting it with minimum or without documents. Lenders mostly offer two kinds of interest rate options i.e. fixed and adjustable.
The maximum tenure for home loans that fall under adjustable rates can stretch up to 30 years. Whereas, in the case of fixed-rate home loans, the maximum tenure is 20 years.
More About the Author
Anil Patel: 32 years Old. Writer and financial consultant. Music Lover and foodie.