Can't get a home loan?

I zeroed in on a property at Badlapur. I have all the papers in order.

When I approach the banks for a home loan, after scrutiny of my papers my request for home loan is rejected on the basis that I am employed in a "Proprietorship concern".

Does working in a proprietorship / partnership / HUF concern, disqualify a person for obtaining a home loan?

- Sunil Gupta

This is a genuine problem faced by a lot of consumers.

The banks are not comfortable with providing long-term loans to employees of proprietary concerns due to the perceived 'lack of stability' of such firms and the chances that the income flow of the borrower might be interrupted.

Also, in many cases, the salary is paid in cash which makes it difficult to gauge the true extent of the income.

I am assuming that, in your case, the salary is paid by cheque regularly with appropriate deductions such as professional tax, income tax and provident fund, if such a scheme is applicable to your employer.

If that is so, you should approach co-operative banks (even some nationalised banks) in your area who will be willing to provide a loan on this basis.

Please ensure you have proof dating back many years to prove the regularity in payment of salaries and the growth in income that might have occurred over the years.