Indian Banks and NBFCs opening up to Startups
Even Startup Founders & Employees can get the best Home Loans
Generally, employees working in non-category CAT A or non-listed Corporates find it difficult to obtain home loans. Most Banks and NBFCs prefer to provide home loans to salaried professionals working in CAT A companies like Accenture, GE, EY, PWC, Deloitte, KPMG, Reliance, Airtel and other large corporates. (This is just a representative list of CAT A companies. All Listed companies belong to CAT A). CAT B companies would be mid-size companies with turnover in the range of 1000 crore. Salaried workers in companies other than CAT A and CAT B struggle to obtain the best interest rates from the top banks like HDFC, SBI, LIC Housing, Axis, ICICI and other reputed Banks. The good news is that this is not the situation anymore in India! With more than 100 Banks and NBFCs offering Home Loans for various customer profiles, it has now become easy to obtain a Home Loan at the best interest rate.
Now today almost all banks offer home loans for startup founders and employees, if they can meet the following conditions:
- 1 year job continuity
- A professional degree (preferred but not compulsory)
- 6 months Banks Statement showing regular salary deposits (even those with cash salary can obtain home loans)
- 3 Latest salary slips
Home Loan for Startups Employees & Founders
Banks and NBFCs have to hedge their risks and thus do not provide home loans to “risky” borrowers. Risky borrowers would be those who don’t have job continuity and don’t get regular salary credit in their bank account. Due to irregular salary credit, banks cannot recover their home loan EMI. Therefore, if you or any of your friends work in a startup, then ensure that you regularly receive your salary credit in your bank account before then 10th of every month.
There are some more important dos and dont’s of home loans for startup founders and employees. More on that later.
If you are interested in applying for a home loan for yourself or your colleagues, then Apply Here.