A complete checklist of documents for self employed to apply for home loan.
Our country is a mixed platter of traditional businesses and new age start ups. Whether a family business, new company or independent practice, if you are running your own show independently, kudos to you!
While it must have been exciting to build your business single-handed, you may have found that practical matters like getting a home loan have not been very easy in the past. Fortunately even this is changing for the better now.
Banks are now happy to give loans to entrepreneurs, business owners, self employed and professionals. Of course they will run their checks and due diligence to make sure their loan is safe.
You would know by now, banks like to evaluate your case a bit more in depth if you are applying for a home loan and you are self employed. But this is not because they are suspicious. It is only because every business comes with different challenges. The decision on eligibility is not as straight forward as a salaried individual. So the bank will ask you for a number of documents to make sure your case is solid. Let’s take a look at what documents for self employed need to put together when applying for a home loan:
Basic KYC documents
Passport size photograph for all applicants
Pan card copy for all applicants
Present address proof of all applicants
Permanent address proof for all applicants
Business/Company address proof
Profile of business on company letterhead
MOA & AOA of the company
Municipal receipt of registration
Certificate of incorporate or MOA or MOU
Cheque for Processing fee cheque
Check for Administration charge
Cash/cheque for Franking, notary and other charges
If you file under section 44 AD then ITR would not be required
Income and expense statement
Or Profit and loss statement
If income is high value, then audited P&L statement
Statement of net worth certified by a CA
Proof of obligations
Most banks look at only the large value loans against your name.
Sanction letters from banks for your existing loans
Bank statements that reflect the loan installments
Getting a new home loan or switching your existing home loan to another bank is not very difficult these days. But your main objective will be to get high amount of loan with minimal interest rate and costs. All this is possible even if you are self employed, as long as you get a few basics right – steady income, thorough documentation, reasonable contribution from your end and a good history of loan repayment in the past.
We look forward to hearing from you about your home loan journey. Do share your thoughts, queries and comments with us below.
SwitchMe is a registered trademark of SwitchMe Technologies Private Limited. SwitchMe does not claim the right to use any logo/ trademark other than its own. SwitchMe does not represent any other company, bank, or organization in relation to its services.