by Ms.BIENU VERMA VAGHELA, Apna Paisa
When Mr. Rajesh Mehra,
who has been living on rent from many years in a building, was planning to buy
a house,he faced some difficulty in getting a loan. What is the reason He runs
a small enterprise. It is a profitable enterprise and he files all his ITRs regularly
but banks are giving him a tough time and now he is talking to HFCs (Housing
Finance Companies).
So, like Mr. Mehra, if
you thought that your being in business, limits your prospects of getting a
housing loan, it is not completely true. In fact, as the number of
entrepreneurs have increased manifold in the recent times, the banks too, can
not ignore this segment.In fact, banks are looking at them in a big way.
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| Ms. BIENU VERMA VAGHELA |
Taking cognisance of
the scenario, banks have made all attempts to make the lending activity simpler
than what it was few years ago.Still the fact can not be ignored that the
process you, as a business owner has to go through, would be slightly
different, had you been employed in an enterprise.
The rules are
slightly tighter. Particularly, when you have chosen a bank as your lender.
Your lenders would want you to have a business record of at least the last 3
years. Then they would like to go through your filed tax returns for the
previous years to get an overview of the stability of your income.
Thus, if you are in
business and a housing loan aspirant too, then it is important that you keep
proper and up to date records of your business.These will come in handy when
you approach the lender. If you have all documents in place, in all
probability, you would be considered to be in a low risk zone.
The eligibility
criteria for taking a housing loan for the self-employed class depends on the
criteria set by banks which varies from bank to bank.
Certain banks
consider only if you have a gross annual income of Rs. 1,50,000 or / above,are in the range of 23 years of age and
above with a maximum age of 65 years or / retirement age, whichever is
earlier,at the time of the loan maturity and 3 years of continuous operations.
Besides, you will
need to furnish an identity and residence proof, education qualification
certificates and proof of business existence.
Also, you will be
required to submit a business profile, income tax returns of the last 3 years,
profit and loss balance sheets and last 6 month's bank statements.
HOUSE PURCHASE LOANS
APPLICATION PROCESS..
An individual /
company / professional can apply for house purchase loans in different home
loan corporations by filling the application form.
These days, companies
provide online forms for customer convenience. There is certain information
that one must furnish, in order to qualify for approval of home loans.
The basic purpose
outlined by lenders remains the same whether you are employed or / in business.
Home loan is offered for the purchase of a housing accommodation like flats,row
houses and bungalows,etc., on ownership basis.
You should have a
steady income from your business and above all,an inclination to repay.The loan
amount depends on your repayment capacity as determined by the bank.
The Equated Monthly
Instalment (EMI) would be based on the quantum of the loan, the rate of
interest and the repayment period. These loans are not uncommon today. You
should bargain for the lowest rate and make sure that you read the fine print
and you will be able to bargain only if you have a clean credit report and a
reasonably high credit score.
About the author..
The writer Ms. BIENU VERMA VAGHELA is Chief
Editor at Apna Paisa.
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| Ms. BIENU VERMA VAGHELA |
Ms.Bienu Verma Vaghela is
chief editor in Apnapaisa.com.She is an arts graduate (Hons.) majoring in
English literature from Hindu College, Delhi University and holds a masters In
Journalism from S P College of Communication & Management.
Before joining
Apnapaisa.com she was as senior editor at Asit C Mehta securities, executive
editor- CMAIs apparel magazine, deputy manager media & PR- Picup (Govt. of
UP Undertaking under IDBI) and Asst. PR & Media Executive BHEL (Govt. of
India Undertaking)
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