Home Loan Interest Rates for Self-employed
Home loan interest rates for self-employed usually start from 8.35% p.a. Most banks/HFCs offer home loans to self-employed professionals/non-professionals at floating interest rates while a few additionally offer home loans at fixed interest rates. Some lenders also additionally offer home loans at mixed/hybrid interest rates under which the home loan interest rates for self-employed borrowers remains fixed for a few initial years of the loan tenure and becomes floating rate thereafter. Self-employed borrowers availing home loans at higher interest rates can also consider transferring their existing home loans to other lenders using the home loan balance transfer facility at lower interest rates.
Banks/HFCs have designed different home loan products to cater the needs of self-employed. Usually, lenders offer home loan interest rates to these two categories of self employed borrowers:
- Self-employed professionals: Borrowers who are educationally qualified in their area of expertise and have set up their own business, such as doctors, lawyers, engineers, MBAs, CAs, etc.
- Self-employed Non-professionals: Borrowers who are not educationally qualified in their area of business but have their own business such as traders, commission agents, contractors, etc.
Also Read: How you can build or rebuild your credit score with Step UP Credit Card co-branded with SBM Bank India Ltd.
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Compare Interest Rates on Home Loans for Top Banks & HFCs
| Name of Lender | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh | |
| SBI | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | 8.50%-9.85% p.a. | Check Eligibility |
| HDFC Bank Limited | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| LIC Housing Finance | 8.50% - 10.35% p.a. | 8.50% - 10.55% p.a. | 8.50% - 10.75% p.a. | Check Eligibility |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| PNB Housing Finance | 8.50% - 14.50% p.a. | 8.50% - 14.50% p.a. | 8.50%-11.45% p.a. | Check Eligibility |
| Punjab National Bank | 8.45% - 10.25% p.a. | 8.40% - 10.15% p.a. | 8.40% - 10.15% p.a. | Check Eligibility |
| Bank of Baroda | 8.40% - 10.65% p.a. | 8.40% - 10.65% p.a. | 8.40% - 10.90% p.a. | Check Eligibility |
| IDFC First Bank | 8.85% p.a. onwards | 8.85% p.a. onwards | 8.85% p.a. onwards | Check Eligibility |
| L&T Finance Limited | 8.65% p.a. onwards | 8.65% p.a. onwards | 8.65% p.a. onwards | Check Eligibility |
| Tata Capital Housing Finance | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards | Check Eligibility |
| Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards | Check Eligibility |
| Axis Bank | 8.75%-13.30% p.a. | 8.75%-13.30% p.a. | 8.75%-9.65% p.a. | Check Eligibility |
| Godrej Housing Finance | 8.55% p.a. onwards | 8.55% p.a. onwards | 8.55% p.a. onwards | Check Eligibility |
Note: Interest rates as on 8th April 2024
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Home Loan Eligibility For Self-employed
The home loan eligibility for self-employed borrowers may differ from one lender to another. However, some major conditions required for self-employed home loan application are as follows:
- The borrower should be a self-employed professional/non-professional.
- Most lenders usually consider resident Indians eligible for home loans for self-employed, however, some may offer home loans for Self-employed NRIs as well.
- Most banks/HFCs usually offer self-employed home loans to loan applicants who are 21 years or older, whether they are applying for fresh home loans or opting for balance transfer. However, lenders also require the home loan borrowers to repay their loans before they reach the age of 70.
- While having credit scores of 750 or above increases the chances of availing home loans, many banks and HFCs also offer self-employed home loans at lower interest rates to applicants with higher credit scores. Many lenders also offer lower interest rates to self-employed home loan applicants having higher credit scores.
- The borrower’s annual income must meet the income guidelines set by the lender. Most lenders usually require a minimum income of Rs 2 lakh for self-employed home loan borrowers.
- Most lenders require their self-employed home loan borrower’s business to be running for a minimum 3-5 years.
- Existing self-employed home loan borrowers can also enhance their home loan eligibility by opting for longer loan tenures or by adding co-borrowers.
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Documents Required for Home Loan for Self-employed
Documents for availing self-employed home loans may differ from one lender to another. However, some major documents required for home loan application for self-employed borrowers are as follows:
- Identity Proof documents (Adhaar Card/PAN Card/Voter ID Card/Driving License )
- Residence Proof documents (Adhaar Card/PAN Card/Voter ID Card/Driving License )
- Age Proof Documents (Adhaar Card/PAN Card/Voter ID Card/Driving License )
- The license of Professional Practice (For Doctors, Consultants, etc.)
- Bank statement/ passbook for last 12 months
- Income and business continuity proof
- Form 16 / Income Tax Returns
- Education qualification certificate and proof of business existence
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
List of above-mentioned documents for home loans is non-exhaustive. Banks/HFCs may ask for additional documents based on their requirements and profile of the loan applicant.