Are you a self-employed professional or non-professional and looking for a home loan? Top banks of India have come up with tailored home loan offers starting from 8.50% p.a.* with differential offerings and flexible documentation based on your requirements.
Current Home Loan Interest Rates for Self-Employed Professionals and Non-Professionals – 2025
Let’s have a glimpse of the interest rate and processing fee of top banks as of May, 2025.
| Bank/ HFCs | Interest Rate | Processing Fee |
|---|---|---|
| HDFC Bank | 8.50% p.a. onwards | Self-employed professionals: Up to 0.50% of the loan amount or ₹3,000, whichever is higher Self-employed non-professionals: Up to 1.50% of the loan amount or ₹4,500, whichever is higher |
| ICICI Bank | 9.00% p.a. onwards | Up to 2% of the loan amount + GST |
| SBI | 8.50% p.a. onwards | 0.35% of the loan amount (minimum ₹2,000, maximum ₹10,000) + GST |
| Kotak Mahindra | 8.75% p.a. onwards | 1% of the loan amount, plus applicable taxes and statutory dues |
| Bajaj HFL | 9.10% p.a. onwards | Processing fees are up to 4% of the loan amount, plus applicable GST |
| LIC HFL | 8.50% p.a. onwards | Loans up to ₹1 crore: 0.25% of the loan amount, with a maximum of ₹15,000 Loans above ₹1 crore to ₹2 crore: ₹20,000 Loans above ₹2 crore to ₹5 crore: ₹25,000 Loans above ₹5 crore to ₹15 crore: ₹50,000 All processing fees are subject to applicable GST |
| Punjab National Bank | 8.80% p.a. onwards | Zero processing fee until March 31, 2025 |
| Bank of Baroda | 8.40% p.a. onwards | Loan Amount up to ₹50 lakh: 0.50% of the loan amount Loan Amount above ₹50 lakh: 0.25% of the loan amount |
| IDBI | 8.45% p.a. onwards | Self-Employed Professionals: ₹5,000 to ₹13,500 Self-Employed Non-Professionals: ₹6,000 to ₹15,000 |
| Tata Capital HFL | 8.75% p.a. onwards | Processing fees start at 0.20% of the loan amount, plus applicable GST |
| Canara Bank | 8.40% p.a. onwards | The fee is 0.50% of the loan amount, with a minimum of ₹1,500 and a maximum of ₹10,000, plus applicable GST. |
| Bank of India | 8.40% p.a. onwards | Self-Employed Professionals: 0.25% of the sanctioned loan amount Self-Employed Non-Professionals: 0.50% of the sanctioned loan amount |
| Karur Vysya Bank | 9.00% p.a. onwards | Loans up to ₹25 lakh: ₹2,500 + GST Loans between ₹25 lakh & ₹50 lakh: ₹5,000 + GST Loans above ₹50 lakh: ₹7,500 + GST |
Source of Information:
- SBI Home Loans for Non-Salaried (Differential Offerings)
- HDFC Self Employed Home Loans
- ICICI Bank Home Loans for Self Employed
Breakup of Self -Employed Home Loan Offers by Different Banks
Here is a comprehensive summary of interest rate and processing fess of major banks
1. HDFC Bank
- 📌 Self-employed professionals: 0.50% of loan or ₹3,000 (whichever is higher)
- 📌 Non-professionals: 1.50% or ₹4,500 (whichever is higher)
- ✅ Differentiated pricing for professionals vs. non-professionals
2. ICICI Bank
- 💰 Up to 2% of the loan amount + GST
- 🚩 Relatively higher fee, especially for larger loans
3. SBI (State Bank of India)
- 🏷️ 0.35% of the loan amount (₹2,000 min, ₹10,000 max)
- ✅ Very reasonable and capped processing fee
4. Kotak Mahindra Bank
- 🔖 Flat 1% of loan amount + taxes
- ⚠️ No min/max cap mentioned
5. Bajaj HFL
- 📈 Charges up to 4% of the loan amount + GST
- 🚨 One of the highest processing fees among lenders
6. LIC HFL
- 🧮 Tiered slab:
- Up to ₹1 Cr: 0.25%
- ₹1–2 Cr: ₹20,000
- ₹2–5 Cr: ₹25,000
- ₹5–15 Cr: ₹50,000
- ✅ Transparent and capped fee structure
7. Punjab National Bank
- 🆓 Zero processing fee (Limited period till March 31, 2025)
- 🎉 Best offer currently if within promotion period
8. Bank of Baroda
- 🪙 Tiered structure:
- Up to ₹50 lakh: 0.50%
- Above ₹50 lakh: 0.25%
- ✅ Better rates for higher loan amounts
9. IDBI Bank
- 🧑💼 Professionals: ₹5,000–₹13,500
- 🧑🔧 Non-professionals: ₹6,000–₹15,000
- 📌 Fixed slab, varies by profession type
10. Tata Capital HFL
- ⚙️ Starts from 0.20% of the loan amount + GST
- ✅ Among the lowest starting rates
11. Canara Bank
- 💵 Flat 0.50% of loan amount (₹1,500 min, ₹10,000 max)
- 🎯 Reasonable and capped fee, consistent for all applicants
12. Bank of India
- 🧑⚖️ Professionals: 0.25% (₹1,500–₹20,000)
- 🧑🔧 Non-professionals: 0.50% (₹3,000–₹40,000)
- 🧾 Wide range, based on applicant type and loan size
13. Karur Vysya Bank
- 🪙 Tiered flat fee:
- Up to ₹25 lakh: ₹2,500
- ₹25–50 lakh: ₹5,000
- Above ₹50 lakh: ₹7,500
- ✅ Simple, predictable fee structure
Who Are Self-Employed Professionals?
Self-employed individuals are those who work for themselves rather than being employed by a company or organization. They run their own businesses, freelance, or operate as independent professionals. In the context of home loans, lenders typically categorize self-employed applicants into the following types:
Self-Employed Professionals (SEP)
These are individuals with professional qualifications who offer their services independently. Common examples:
- Doctors
- Chartered Accountants (CA)
- Architects
- Engineers
- Lawyers
- Management Consultants
Self-Employed Non-Professionals (SENP)
These individuals run businesses or work in trades but are not classified as professionals with formal certifications. Examples:
- Shop owners
- Traders
- Contractors
- Small business owners (e.g., garment shop, travel agency)
- Freelancers without formal certifications
Home Loan for Self-Employed and Non-Salaried People: Eligibility Criteria
Before applying for a home loan as a self-employed, it’s essential to understand the eligibility criteria set by banks and Housing Finance Companies (HFCs). These criteria help lenders assess your financial capability and repayment potential.
Here’s a breakdown of the common eligibility criteria most lenders look for when processing home loan applications for self-employed :
| Criteria | Requirements |
|---|---|
| Age | 21 years – 65 years |
| Nationality | Resident Indian NRIs/ PIO/ OCI |
| Work Experience | At least 3 years of business continuity |
| Credit Score | 750+ |
What Is the Maximum Loan Amount I Can Get As a Non-Salaried Borrower?
The loan amount that a lender is willing to approve is influenced by several factors, including the applicant’s ability to repay, age, and overall financial profile. Below is an overview of the maximum loan amounts typically offered in relation to the property’s total cost:
| Property Value Range (₹) | Typical LTV Ratio Allowed for Self-Employed |
|---|---|
| Up to 30 lakhs | Up to 90% of the property value |
| 30 lakhs to 75 lakhs | Up to 80% of the property value |
| Above 75 lakhs | Up to 75% of the property value |
Documents Required for Getting a Home Loan as a Non-Salaried Person
Banks and financial institutions require various forms of identification, financial statements, and property-related documents to assess your eligibility and process your loan application.
General Requirements
| Category | Documents Required |
|---|---|
| Application Form | Duly filled and signed along with three photographs |
| Proof of Identity | PAN Card / Driver’s License / Voter ID / Passport / Aadhar Card |
| Proof of Residence | Driver’s License / Ration Card / Voter ID / Passport / Aadhar Card / Registered Rent Agreement |
| Proof of assets held | LIC, NSC, KVP, Mutual Funds, Property |
Proof of Income
| Category | Description |
|---|---|
| Company Income Details | Balance Sheet, Profit & Loss A/C, and Income Computation for the last 2 years. |
| Personal Income Details | ITR for the last 2 years (with Form 26 AS and Traces). |
| Business Registration Details | Business proof (Gumasta License, Registration Certificate, Service Tax Registration, etc.). |
| Regulatory Compliance Documents | IT assessment and clearance certificate, IT challans, TDS certificate (Form 16A). |
| Bank Statements | Bank account statement for the last 12 months (for individual or business). |
Property Documents
| For Ready Property | For Property Under Construction |
|---|---|
| Agreement for Sale | Agreement for Sale |
| Non-Agriculture (NA) Certificate | Commencement Certificate |
| Commencement Certificate (CC) | Approved blueprint and plan copy |
| Completion Certificate (if applicable) | Encumbrance Certificate |
| Occupancy Certificate (if applicable) | Purchase Agreement |
| Latest property tax paid receipt | Proof of money contributed for the house |
| Society Registration Certificate (if applicable) | Copy of authority letter addressed to the sub-registrar, acknowledged |
| Share Certificate (if applicable) | |
| All payment receipts to the builder or seller | |
| Chain of old agreements (for resale flats) | |
| Title clearance report from an approved advocate | |
| Valuation report from the bank’s approved valuer |
Documents for NRI/PIO/OCI
| Category | Documents Required |
|---|---|
| Identification and KYC Documents | Document Establishing KYC: Basic KYC requirements. Copy of Passport: Showing the page of residence visa. |
| Employment and Income Verification | Salary Certificate: Issued by employer, stating details like name (as per passport), designation, passport number, date of joining, and latest salary, all mentioned in English. Salary Slips: Last 3 to 6 months’ slips reflecting variable components like incentives, overtime, etc. Proof of Employment: Documents like work permit, labour contract, etc., provided by the Government of the residing country. Income Documents Attested by Embassy: Required if there’s no documented evidence for salary credit or fund remittance to India. Email ID of HR (Employer): To verify employment details. Employment Profile: Documenting the last 5 years of employment history. |
| Business Documents for Self-Employed NRIs | Business Related Documents: Includes Trade Licences, Sponsor Agreements, Power of Attorney, etc. Credit Report: From Overseas credit agencies (except for Merchant Navy). CDC: Required in case of Merchant Navy. |
| Financial Statements | Overseas Bank Statement: Copies from overseas banks for the past 6 months. NRO/NRE Bank Statement: Last 6 months to trace the financial transactions in India. |
| Property Related Documents | Property Documents: Including cost estimates from an Indian Architect or Engineer. |
| Legal and Power of Attorney | Power of Attorney: If the applicant is unavailable in the country at the time of signing documents, a Power of Attorney needs to be produced by the person acting on their behalf. |
Post Loan Closure – Documents for Handover
- Power Of Attorney: For collecting original documents of Property.
- Letter requesting handing over of Property documents: From Legal Heir/Nominee(s).
- Letter relinquishing the right to Legal Heirs/Nominees: For Property documents handover
Why Do Home Loans Feature Higher Interest Rates for the Self-Employed?
Have you ever wondered why the interest rates for home loans for non-salaried borrowers are higher than those for salaried folks? There are several factors at play here, including your income potential, risk and credit profiles, and business niche, just to name a few.
Check out this table for a comprehensive overview of the reasons for the different interest rates:
| Reason | Explanation |
|---|---|
| Perceived Income Instability | Variable income streams unlike salaried employees who receive a consistent paycheck Banks might face challenges while verifying income to assess repayment ability |
| Higher Risk Profile | Business volatility increases the risk of income disruption. Risk of borrower defaulting the EMI payments. |
| Administrative Costs | Assessing the financial stability of self-employed applicants requires more comprehensive evaluations, including detailed financial statements and business forecasts. These additional administrative efforts can lead lenders to offset costs by increasing interest rates. |
| Regulatory Requirements | In some jurisdictions, regulations may mandate higher scrutiny or conservative lending practices for self-employed borrowers, indirectly contributing to higher interest rates. |
Are Self-Employed or Non-Salaried People Eligible For a Home Loan?
In India, the dream of homeownership extends to both salaried and self-employed individuals, though the pathways to securing a home loan differ significantly between these groups. While salaried applicants benefit from standardized income verification processes, self-employed professionals and non-professionals face a more nuanced evaluation of their financial stability. This report examines the eligibility criteria for self-employed borrowers and contrasts the loan acquisition process, documentation requirements, interest rates, and repayment terms with those applicable to salaried individuals.
Eligibility Criteria for Self-Employed Home Loan Applicants
Self-employed individuals in India are broadly categorized into two groups: professionals (e.g., doctors, lawyers, architects) and non-professionals (e.g., traders, contractors, commission agents). Lenders such as ICICI Bank, HDFC Bank, and Bajaj Finserv extend home loans to both categories, provided they meet specific income and documentation standards.
Income Requirements
For self-employed applicants, lenders typically require a minimum annual income of ₹3.6 lakh, with fixed obligations (existing EMIs, rent, etc.) not exceeding 40–50% of monthly income. In contrast, salaried individuals must demonstrate a minimum net monthly income of ₹25,000, as seen in Bajaj Finserv’s eligibility criteria. The higher income threshold for self-employed borrowers reflects the perceived volatility of their earnings compared to the stability of salaried income.
Documentation
Self-employed applicants must submit three years of Income Tax Returns (ITR), audited Profit & Loss statements, and balance sheets to verify business profitability. Professionals may also need proof of educational qualifications, while non-professionals provide trade licenses or GST registration documents. Salaried applicants, by comparison, rely on simpler documentation such as salary slips, Form 16, and employment verification letters.
Can a Self -Employed Avail Home Loan without Income Proof?
Provide Alternative Proof of Income
If you don’t receive a regular salary through bank transfers or have no payslips, you’ll need to submit other documents to validate your income. Helpful alternatives include:
- Offer Letter or Employment Contract: This document outlines your job title, salary, and employer details—serving as official proof of employment.
- Income Tax Returns (ITRs): Filing your ITRs on time gives a verified record of your income, even if your salary is paid in cash. This is particularly useful as it’s an official document accepted by lenders.
- Employer Declaration or Affidavit: You may request your employer to provide a written statement or sworn affidavit confirming your monthly earnings. The more formal and reputable the source, the more reliable it is to lenders.
Choose Lenders That Support Cash Salary Earners
Some lenders—especially NBFCs (Non-Banking Financial Companies)—offer flexible loan options to individuals paid in cash. Although traditional banks often demand strict documentation, NBFCs usually provide more relaxed terms.
These institutions are typically more accommodating and may require fewer income proofs. Always research and compare multiple lenders online to evaluate interest rates, fees, and loan terms before applying.
Improve Your Credit Score
One of the most important factors for getting a loan is your credit score. A good credit score proves that you’ve handled loans responsibly in the past and can repay on time. This greatly improves your loan approval chances—even without formal income records.
A strong credit score reassures lenders of your reliability, increasing the likelihood of approval if you earn in cash.
Consider Using Collateral or a Loan Guarantor
If you lack standard income documentation, offering collateral such as property, gold, or other assets can boost your chances of loan approval. Collateral minimizes the lender’s risk and strengthens your application.
Alternatively, a guarantor with a good credit history can co-sign your loan. The guarantor provides a safety net for the lender, improving your approval odds—even if your salary is not officially documented. However, the guarantor is only liable if you default on payments.
Income Range Criteria for Self-Employed Home Loan Applicants
Most banks require self-employed applicants to have a minimum annual income of ₹3 lakhs to ₹5 lakhs. This ensures that the borrower has a steady income stream to manage loan repayments.
Home Loan Repayment Options Offered by Lenders
When taking out a home loan, understanding the various repayment options available can help you manage your finances more effectively. Lenders typically provide the following repayment methods:
1. Tranche-Based EMI
- Applicable Scenario: Ideal for purchasing properties that are still under construction.
- Repayment Structure: EMIs (Equated Monthly Installments) commence only after the entire loan amount has been disbursed.
Key Features:
- Interest-Only Payments Initially: During the construction phase, borrowers have the flexibility to pay interest solely on the amount that has been disbursed.
- EMI Activation Post-Disbursement: Once the full loan amount is released, regular EMIs begin, covering both principal and interest.
Benefits:
- Cash Flow Management: Helps in managing finances by reducing the immediate repayment burden during the construction period.
- Flexibility: Allows borrowers to adjust their payments based on the loan disbursement schedule.
2. Accelerated Repayment
- Objective: Designed to help borrowers repay their home loan faster as their financial situation improves.
- Repayment Structure: EMIs increase in tandem with the borrower’s rising income levels.
Key Features:
- Dynamic EMIs: Allows for higher EMI payments when the borrower’s income grows, leading to quicker loan closure.
- Interest Savings: Accelerating repayments can significantly reduce the total interest payable over the loan tenure.
Benefits:
- Shortened Loan Tenure: Enables borrowers to clear their loans ahead of schedule.
- Cost Efficiency: Reduces the overall cost of the loan by minimizing the interest component.
3. Telescopic Repayment
- Objective: Provides flexibility in managing loan amounts and repayment durations.
- Repayment Structure: Allows borrowers to extend the loan tenure up to 30 years.
Key Features:
Customizable Repayment Plans: Borrowers can adjust their repayment strategy based on their financial goals and changing circumstances.
Extended Tenure: Offers the option to lengthen the repayment period, which can increase the eligible loan amount or decrease the monthly EMI burden.
Benefits:
- Enhanced Affordability: Lower EMIs make home loans more affordable, especially for high-value properties.
- Increased Loan Eligibility: Extending the tenure can help qualify for larger loan amounts without escalating monthly payments.
Key Factors Affecting Home Loan Approval
When applying for a home loan, several factors influence whether your loan will be approved and the terms you’ll receive. Here are the key factors:
- Credit Score
- Income Stability
- Employment History
- Loan Amount and Tenure
- Existing Debts
- Age of the Applicant
- Property Value and Location
- Down Payment Amount
- Interest Rates
- Lender’s Internal Policies
Home Loan Tax Benefits
Home loan tax benefits can significantly reduce the financial burden of owning a home. In many cases, borrowers can claim deductions on both the principal and interest paid on their home loans, helping to save on taxes while investing in property.
1. Deduction for Interest Paid on Housing Loan (Section 24)
- Eligibility: Loan must be for purchase or construction, completed within 5 years from the loan’s financial year.
- Deduction Limits:
- Self-Occupied Property: Up to Rs 2 lakh.
- Let Out Property: No upper limit on interest deduction.
- Exceeding Construction Time: Deduction limited to Rs 30,000 if construction exceeds 5 years.
2. Deduction on Interest for Pre-Construction Period
- Eligibility: Applies to under-construction properties; deduction starts upon completion.
- Calculation: Interest paid during pre-construction divided into 5 equal instalments, claimable from the year of completion, capped at Rs 2 lakh.
3. Deduction on Principal Repayment (Section 80C)
- Limit: Up to Rs 1.5 lakh annually.
- Condition: Property must not be sold within 5 years of possession; otherwise, the deduction will be reversed.
4. Deduction for Stamp Duty and Registration Charges (Section 80C)
- Claim Period: Only in the year these expenses are incurred, within the overall Rs 1.5 lakh limit.
5. Additional Deduction (Section 80EE)
- Limit: Up to Rs 50,000.
- Eligibility: First-time homebuyers, loan amount up to Rs 35 lakh, property value up to Rs 50 lakh, loan sanctioned between April 1, 2016, and March 31, 2017.
6. Additional Deduction for Affordable Housing (Section 80 EEA)
- Limit: Up to Rs 1.5 lakh.
- Eligibility: Property stamp value under Rs 45 lakh, loan sanctioned from April 1, 2019, to March 31, 2022, and must be the first-time homebuyer.
7. Deduction for Joint Home Loan
- Benefit: Each co-owner and co-borrower can claim deductions independently.
- Limits:
- Interest: Up to Rs 2 lakh each.
- Principal: Up to Rs 1.5 lakh each under Section 80C.
Home Loan Eligibility Criteria: Salaried vs Self-Employed
Here is a detailed comparison table summarizing the home loan eligibility differences between self-employed and salaried individuals based on key criteria:
| Eligibility Criteria | Salaried Individuals | Self-Employed Individuals |
|---|---|---|
| Age Limit | 21 to 70 years | 23 to 70 years |
| Minimum Work Experience | Typically 2 years in current job | Typically 3 years in the same business/profession |
| Minimum Income | Around ₹12,000 per month | Around ₹12,000 per month (varies by lender) |
| Income Proof Required | Salary slips, Form 16, bank statements | ITRs for 2-3 years, audited financials, bank statements, business proof |
| Credit Score | Good credit score of 700+ | Good credit score of 700+ |
| Loan Tenure | Up to 30 years | Up to 30 years |
| Loan Amount Range | ₹5 lakh to ₹2 crore | ₹5 lakh to ₹2 crore |
| Income Stability | Fixed monthly income from employer | Variable income; income proof may be complex |
| Loan Eligibility Factors | Based on fixed monthly income and FOIR | Based on business turnover, gross receipts, and FOIR; lenders may consider higher multipliers due to flexible income declaration |
| Processing Time | Generally faster due to simpler documentation | May take longer due to detailed scrutiny |
| Interest Rates | Generally lower (linked to policy repo + margin) | Slightly higher due to perceived income irregularity and credit risk |
| Repayment Capacity Assessed | Based on salary and existing EMIs | Based on declared income, business stability, and existing obligations |
| Additional Notes | Retirement age often capped at 58-60 years for tenure calculation | Tenure often calculated assuming active business till age 65, allowing longer repayment period and higher eligibility |
Conclusion
Securing a home loan is a significant step towards achieving your dream of homeownership. By understanding the intricacies of home loan for self employed professionals – interest rates, eligibility criteria, and the application process, you can navigate this journey more confidently.
If you’re looking for personalised advice or need help choosing the best home loan option, Credit Dharma is here to guide you every step of the way. Our experts are dedicated to helping you find the most suitable loan that fits your financial landscape.
Frequently Asked Questions
Yes, self-employed individuals can secure home loans. Credit Dharma offers tailored loan products to meet the unique needs of self-employed professionals.
Required documents may include bank statements, P&L and Balance Sheet, income tax returns, and financial statements like profit and loss accounts.
Lenders may assess your average income over time. Providing comprehensive financial records can help demonstrate your earning capacity.
Yes, banks usually offer customized repayment plans, including seasonal and step-up repayment options.
Simply contact us for a free consultation, and we’ll guide you through the application process step by step.
KYC Documents, P&L (Income Proof), Proof of Medical Practice Existence, Account Statement for the last 6 months.
Yes, a non-salaried person can absolutely get a home loan in India.
Banks and financial institutions offer home loans to self-employed individuals, freelancers, business owners, consultants, and others with non-salaried income
Yes, submitting ITR (Income Tax Returns) is generally mandatory for securing a home loan in India—especially if you’re a self-employed or non-salaried applicant.
Yes, you can still get a home loan without a salary slip, but you’ll need alternative documents like ITRs, bank deposit records, an employer affidavit, or a guarantor. Offering collateral can also help, and NBFCs tend to be more flexible in such cases.
Yes. Self-employed professionals like doctors and chartered accountants often enjoy benefits such as lower processing fees, better interest rates, and simplified documentation requirements when applying for a home loan.
Yes. Adding a co-applicant, such as a spouse or parent, can boost your home loan eligibility by combining incomes, providing stronger repayment assurance, and improving the chances of loan approval.
HDFC Home Loan
SBI Home Loan
