The advantages of being independent is balanced by the difficulties in getting a loan when you are self-employed in Bangladesh. Here are a few tips to give you an idea of how you can get a housing loan even if you are self-employed.
The obvious first step is to maintain a steady flow of income. Secondly, organized financial planning will allow you to prepare your income tax and all necessary vouchers and receipts that prove you are a regular tax-paying citizen. Different types of self-employment call for specific requirements. Normally in Bangladesh, the following types of individuals are expected to meet the following criteria.
An easy way to add weight to a loan application for a self-employed individual is to have their own trade license for their business. Individuals are expected to show a copy of the permit of their business and financial statements of their business, and all necessary transactions made through the entity.
In case of professionals practicing their professions such as lawyers or doctors, a practice permit or the address to their chamber or workplace and schedules that include contact number of clients can really add substance. A bank statement from the last six months or the last year should reflect the nature and condition of work.
Rental property owners
For owners of rental real estate properties or even transportation businesses that require leasing out their possession for temporary use, they must be able to present contracts or a copy of property certificates and bank statements that prove a regular flow of income.
Apart from the above, a loan is granted by the bank if the applicant is able to prove that they have the capacity to repay the bank or at least give the bank an asset as leverage in case of failure. Usually, a land, property or something with a high value is kept at stake by the bank. Therefore banks will investigate any individual applying for a loan carefully. Mortgage loan, although tricky, with a sizeable down payment can help lower the loan amount and increase the chances of getting a loan.