Introduction to Property Buying

All you need to know about Assessed Income Program

All you need to know about Assessed Income Program

The Assessed Income Program Home Loan is specifically designed for those customers who fall under the low-income group category. This would be beneficial where no income proof like ITR is available with the borrowers. This includes local Kirana Shop Owners, Street / Vegetable Vendors, Hawkers, etc. The objective of this program is to facilitate small business owners with home loans which they would otherwise not be eligible for, due to lack of adequate financial documentation. A thorough verification of their business setup would be carried out for assessing loan eligibility.

Features and Benefits

The Assessed Income Program has several features and benefits. Here are the 3 key benefits :

  1. Flexible Loan Tenure
  2. The tenure of the home loan under the Assessed Income Program can be extended up to a maximum of 30 years in case of home loan and up to a maximum of 15 years in case of Loan against Property.

  3. Higher LTV (Loan to Value Ratio)
  4. Under this program, the customer is eligible for Home Loan up to 90% of the property’s market value and Loan Against Property of up to 60% of the property’s market value.

  5. Minimum Documentation
  6. For Assessed Income Program, there is minimum documentation that is required to assess credit and avail of a loan. For instance, a bank statement of the last 12 months is enough to be considered as a financial document.

  7. Higher Loan Amount
  8. For both metro and non-metro cities, the maximum loan amount offered will be INR 30 Lakhs in case of home loan and INR 20 lakhs in case of Loan against Property.

Eligibility Criteria

To be eligible for the Assessed Income Program offered for Home Loan and Loan Against Property, there are a few criteria that need to be met.

  1. In case of Loan Against Property, the property should be a Self-Occupied Residential or Commercial Property or Self Occupied Commercial Property. No mixed use or rented/vacant properties are allowed.
  2. In case of Home Loans, the property should be 100% built up. No plot loans to be funded under this program.
  3. A person should have proper established Business Setup i.e. a proper stable shop (no temporary shacks / kiosks)
  4. This program is eligible for only for self-employed professional and self-employed non-professional customers.
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