Home Loan without documents & Income Proof
Are you earning good income, but banks are not giving home loan due to non-availability of income proof and documents? Buying a home has remained distant dream because banks not giving home loan without documents & income proof?
Add to trouble is, you might be looking for home with technical problems, like without map property, house in unapproved area / Lal Dora etc. because of not so high budget.
You want to get home loan without documents / income proof. Carefully read complete details to learn why banks don’t give home loan to you, but still how you can get it
Home Loan on Cash Business Income
You want a home loan on cash business income. You are not considered a right person for home loan even after having good income? Like you there are many people running small businesses. You gets your income in cash. You are puzzled how to get home loan without documents / income documents / cash business income.
You don’t keeps record of income generated by business. It can be due to 2 reasons.
- Income comes in small amount and high number of transaction
- Business you do, does not require you to maintain record
You are receiving cash income. As there are small incomes coming every day you don’t want keep track earning. In today’s tough time you hardly have time to do this. For consolidating your income, you need more time & energy on daily, monthly, quarterly and yearly basis. Because of not so big business size and financial reason you cannot appoint professional service to do it. You might be earning better income than class 1 government officer with better home loan repayment capacity.
Like you there are many people doing business like running small shops, restaurant, running cabs / autos or doing trading of many products like agricultural products etc. You are having trouble getting a home loan on cash business income
You may be a service providers like website designer, DTP designer, printing, computer / mobile repairing etc. There are many other people like you earning income in cash. There are non-taxable agriculture based products which does not attract tax. People associated with production and marketing of vegetable, fruit, grain, dairy, poultry & other agricultural product does not keeps record of income and does not files tax. You may have troubled time to get home loan without documents / income proof
Irony is Governments are not bothered about you, who is running growth engine of India. Like you there are crores of small business men / women creating tens of crores employment. Governments are busy grabbing land from farmers and giving at low cost to big businesses. Giving them loans at subsidized rates, good facilities & high rebates.
I know by my personal contacts many people are earning income better than people working in organized sector. I have a friend, his father owns a small hotel / Dhaba right opposite Old Faridabad railway station. It closes for only 4 hours from 2 AM – 6 AM. Some years ago he told me their daily sales was more then 10000/- with more than 6000/- saving after expense. That summed up decent 1.5 Lakhs per month without any tax.
I met one of my friend’s father some year ago. He runs a grocery shop in Ballabhgarh, Faridabad which is traditional old style market. He told me their income is very small. When I asked, he told me their daily sales is some 25000/-. I told him, they earns 9 Lakhs per year at margin he told me 8%-10%. His smile told me, he do not want to declare.
Home Loan on Cash Salary
You are working in not so big company. Owners are paying you salary in cash. Now just when you want to buy a home, you are having difficulty to get home loan on cash salary. Bankers are unable to authenticate you salary as it is not being credited in your account.
Many small business generates income in cash, they finds it difficult to deposit money in account to further transfer it to you. It is time consuming process for small business owner. As they runs small businesses, appointing some body to do it adds to operating cost.
Many small businesses are not organized & well-funded. They pays money to employees at different time of month as per availability of money with owners.
Reason why owners pays you cash salary can be different. But it all adds problem for you to get home loan because of cash salary from reputed banks.
Which Bank Gives Home Loan without Documents / Income Proof?
You have many questions why banks don’t give home loan without documents / income proof & cash salary? Or if there is some bank which gives home loan on these incomes? If yes which bank gives home loan without documents / income proof & cash salary?
First understand why banks don’t gives home loan without documents / income proof & cash salary?
In raw term bank is trader of money. It borrows money from customers at “X” rate and lends at “Y”. Difference between Y & X is for their operating cost, provisions for bad debts & profits. Generally this difference is 3% – 4% to take care of everything, staff salaries, building rental, & profits as well. In case any loan goes in to bad debt, not only they risk profit, but they have to return their customer 100% of money that too with interest.
Credit manager are under heavy pressure to carefully check documents and scrutinize profile of borrower. Credit staff is personally answerable for any single case goes in delayed payment and bad debts. Because even a single loan goes unrecoverable, bank losses income earned by almost 100 rightly served loan. For this reason they don’t even consider a case where even basic income proof are not available. To avoid malpractice at local levels almost all banks have made it a policy to give loans based on income shown on document only.
This is reason banks don’t gives home loan without documents / income proof.
How to get loan on without documents & income proof
Maximum banks and financial institutions do traditional way of your income and loan eligibility appraisal. This method of income appraisal keeps tens of crores loan seekers like you away from bank loan. Understanding opportunity, few financial institutions considers your home loan without documents and income proof. Yes their rate of interest is 3% – 5% higher than leading banks. Good part is they works on customer persona. It means they gives loan in area where their customers generally purchase property. They widely covers technical issues of property like without map property, Lal Dora / Unapproved area property & without map 3rd floor property.
If you don’t have income documents as proof, you can still get home loan at 3% – 5% higher rate. Financial institutions charges higher rate because of high risk category of loan. Still they are far cheaper than private money lenders taking up to 30% yearly from people like you. To give you home loan without documents / income proof your income should be satisfactorily verified by credit manager and field staff of institutions.
You can Click here and submit your details for your requirement. We deals with few non-banking finance companies for home loan without documents / income proof. We do complete analysis of your requirement & recommends you most economical rate of interest option available from our contact financial institutions. For home loan without documents / income documents we takes a one-time loan coordination charges after sanction of your loan.
Feel free to post your experience, comments and ask questions. Your comments can help other home buyer make a better decision.