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Things Self-Employed People Must Consider Before Applying for a Mortgage Loan

· Mortgage Loan,Interest Rate,LAP Interest Rates,LAP Self Employed

Talking about credit schemes, self-employed individuals don’t have many options. Due to the highly volatile source of income, they are likely to get rejected for a home loan, a personal loan, or for any other loan easily accessible by salaried professionals. Having said that, they can enjoy disbursal benefits while applying for a Loan Against Property by following these pointers.

  1. Business Vintage: As per the prevailing terms, a self-employed professional seeking business financing through a loan against property must proof their professional credibility. The ideal way to do that is to have a minimum business vintage of at least 3 years. If your business isn’t that old, look for an alternative solution or wait until your business becomes eligible.

  1. Annual Turnover: Compared to a mortgage loan for salaried professional wherein the applicant has to meet the minimum income criterion, a self-employed person has to submit the annual profit & loss statement showcasing their annual turnover. This acts as a measure of their financial capabilities and helps the lender reach a judgement faster.

  1. Documents: Last but not the least, as a self-employed professional you'll be required to submit the basic and minimal Loan Against Property documents. To name a few you'll need domicile proof, property papers of the real estate to be pledged and an identity proof.

In the end, do a couple more things before applying for a loan. (1) Find out your loan-to-value ratio: the ratio of your property’s current value to the per cent you’ll be able to borrow. Also, make sure you are above 25 years of age and have a good CIBIL score.
 

Also Read here to know more: How to get Unsalaried Financing Facilities with Mortgage Loan?

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