Don’t have A Salary Slip but Want to avail of a Home Loan? Here’s how!

Everyone in India hopes to get a respectable job, make a solid salary, or launch their own business and realize their long-held desire to own a home. However, owning a home is more difficult said than done, given the rising cost of land and property. If you have a good annual salary package and work for a reputable company, getting a home loan shouldn’t be too difficult for you. But what about people who work for themselves? Can self-employed professionals such as freelancers, CA, and doctors get a home loan easily?

For the longest time, the clear mandate for an SBI Home Loan application or of other banks has been-salaried candidate, regular payslip, F-16, etc. While these criteria are preferred by most lenders as they make it easier for them to ascertain the payment capacity of the borrower, it is not the only aspect of ascertaining creditworthiness. There are other factors that we are going to discuss that entail the SBI home loan application below that favour those who don’t have stable salary statements. 

What is the home loan eligibility for self-employed?

After all, unlike people with salaries, self-employed individuals might not have a consistent income. You’ll be glad to learn that today’s home loan eligibility requirements for self-employed professionals are quite relaxed. Like all applicants, the success of their loan application will mostly depend on a variety of factors such as,

Age – Your lender may offer you more attractive terms on an SBI home loan if you are older. Younger self-employed applicants have better eligibility and can benefit from a longer tenure though SBI Home Loan Processing Fees or other banks will be the same. In most cases, your lender may demand income tax returns from the previous three years and profit and loss balance statements of your business. 

Business continuity- Your lender, would be very much interested in knowing for how long your business has been in existence. If it has been profitable, your eligibility for a home loan suddenly increases. A long sustainable and profitable business is a sign of good home loan repayment capability. 

Creditworthiness- The lender will also look at other loans you may have before sanctioning a home loan to you. It is better to have a higher credit score as that indicates better repaying capacity. 

Education qualification- Some lenders consider educational background when determining your eligibility.

A number of dependents- The applicant’s capacity to repay the loan depends largely on how much disposable income they have. It is believed that the applicant’s disposable income will be lower if there are more dependents. 

Home loan Interest rates for self-employed 

Before you go and apply for a housing loan, you should be aware that the interest rates for house loans for self-employed applicants are slightly different from salaried candidates through SBI Home Loan Processing Fees or any other bank’s will be the same. The simple explanation for this is that the risk to the lender is marginally higher for the former. The rate varies across lenders, but it is somewhat around 7.50 per cent to 8.00 per cent for home loan amounts up to Rs. 35 lakh. You also have the choice of a fixed SBI Home Loan Interest Rate or a floating interest rate if you are a self-employed candidate. 

How can you increase your chances of your home loan getting approved?

Consider adding a co-applicant: Get a family member on board with you if they have a good income and a clean credit history. The income of both applicants is taken into account when you apply for a joint home loan. As a result, your chances of getting a home loan will probably improve. By doing this, you might even be able to get a home loan with more favourable terms and a higher loan amount. You may select a co-applicant. However, you may only select blood-related items. This includes your unmarried daughter, unmarried son, mother, father, son, or spouse. However, one should know that adding a co-applicant will not affect the SBI Home Loan Processing Fees or other associated charges of a home loan. 

Keep your savings account under check: Lenders will look carefully at your spending patterns in addition to your proof of income to determine if you are a high-risk or low-risk borrower.

Be transparent with your bank officials: Inform your loan officer about your income source and the reason you were unable to file an ITR in the current or previous year if you don’t have any documentation that proves your income. Your application for a home loan won’t be denied if you present a genuine case. Your source of income will present a clear picture to the bank officials and help them determine your ability to repay the loan. 

Keep your credit score high: Make sure your credit score is high to indicate your creditworthiness. Keep monitoring your credit utilization ratio for this, look for any abnormalities in your CIBIL report on a regular basis, and make sure your credit card payments, existing house loan payments, and other loan EMIs are paid on time. 


For a salaried individual, it is relatively easier to apply for a home loan than for a self-employed individual. Most professionals are in the dark when it comes to knowing the eligibility criteria, the documents required and other essential aspects. Thus, it is imperative that as a self-employed professional, you are extra ready to face the bank official for a home loan application. Do remember that you can negotiate with the bank on the interest rate, but other associated charges such as SBI Home Loan Processing Fees and foreclosure charges will be the same across buyers. Ensure all of your documentation—particularly your income tax returns and business ledgers—is current and prepared before applying for a home loan. The best time to apply for a home loan is when your business is performing well, you have low debt, and your credit score is 750 or above. Even a salaried co-applicant can help you increase your chances.

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