Difference between home loans for salaried vs. self-employed

Why go for a home loan?

So, when you are having a family of your own, it is time for you to apply for home loans now. Buying a home is a big ticket for everyone. For that, you have to understand that there are different rates on to big houses and there are lenders whose property have a basic fee of the same.

So, if you are getting a new home, it is time for you to buckle your seatbelts and look out for only the biggest and the worthiest in the market. Within a combination of your home loans and your personal loans, these will help you to get the best in the domain.

, and they have different rates of the same. So basically, there are options when you get home loans for self-employed. The prices of interest can be slightly attractive and differ according to what you are looking out for.

If you want a fixed rate for your housing loan, then you have to ask your lender about it. And on the front, there are times when you have to prevail different services and look out for only the best banks which serves you the right home loans.

Difference between home loans for salaried and self-employed people

Here are fundamental differences between home loans for salaried and home loans for self-employed. So, the essential prerequisite for having home loans whether you have a decent salary, or you are employed does not depend on one criterion.

The prerequisite is that you should have a healthy earning and a sound credit profile for the same so that you can be eligible for the loan that they have provided you for. The earnings that you make per annum depends and ensures that whether you qualify for the home loan or not.

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And also, your willingness and attitude to repay the home loans for a period of time-dependent and this is how the lender ensures that you should get the home loans or not. And also based on the documents, these requirements and perquisites are made.

Here is the list of documents which are to be submitted by the salaried individual.

  • Salary slips which are issued for the past three months.
  • Bank statements which show the past six months and also the reports of salary account.
  • Tax income rate.
  • Employment letter which is to be submitted during the screening process.

Here is the list of documents which are to be ensured by the self-employed.

  • All the income tax return and statements and the computation of the rate of income for the last three assessment years.
  • Balance sheets of the same with the annexure and the closing dates.
  • Current account and all the statements for the savings and personal accounts.
  • Details of the ongoing loans of both the individual and the business entity and the outstanding amount for the installments and securities.
  • List of the director’s copy.
  • Copy of the shop and the VAT registration.
  • Copy of the partnership and the professional practice certificates.

Apart from all these statements, both the people have to submit their KYC documents and make sure that everything is in the right place or not. And there are basic lenders requirements which both the parties have to confine with so that they can get their housing loan.


Contrary to all the statements you make, the salaried and the self-employed people have to understand all the requirements of the home loans and their reasons. There are general beliefs that people who work and gets their salary to have a higher respect for gaining better grounds of their income tax statement. There are terms and conditions which apply to everything and both the people have to take care of the following before they choose their home loans.

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