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I am a 42-year-old Graphic designer working freelance out of Indore. I am constructing another floor in my house and require funds for the same. Please advise on the best options considering that I am not employed with any company; I would want the best possible terms in a Home Loan so that my monthly instalment is at a minimum.
-Name withheld on request
The outflow on your home loan will be a function of your loan tenor and the rate of interest which is offered to you. Usually, a tenor of 15-20 years will be provided to someone of your age group. The rate of Interest offered to you will be determined by the lending institution you approach, and the credit assessment as done by them. The credit checks in your specific case will be done on several factors like your bureau score, current assets and obligations and your business and cashflows assessment. For the same, you will be asked for your professional qualification, contract copies and proof of receipt (bank statements, TDS certificate etc). The lender would take your vintage in the business, positive client references and longevity of contracts as an added comfort.
Basis their review of these documents and your filed income tax returns, an approximate eligibility will be arrived at. You can enhance the eligibility, and get better terms like interest rate, loan repaying period etc, by adding your spouse/parent as a co-borrower, in case they have an independent source of income (Salary, Rent or Pension etc)
There are various guarantee options available with many lenders that can help you extend your repayment period up to a maximum of 30 years, which can be explored too.
(The query is answered by Amit Diwan, chief distribution officer,India Mortgage Guarantee Corporation)
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