Banks consider the actual cash profits made by the business while assessing the repayment capacity of the applicant, as this will be the prime source of catering the loan. Other then these, the applicant’s personal track record with the banker, properties owned by the applicant, repayment record if any other loan taken previously are also considered.

In case of salaried professionals, the EMI servicing ability is considered to be 50 percent of their net salary; no concrete rule is applied. Documentation alone is not adequate. Therefore, it is advised to be clear about your thoughts during the discussion and convince the bank about your credentials.

3. Self-Employed Professionals

The process is less hectic for salaried professionals as their income standard is depicted in their financial statement and thus the question of any ambiguity doesn’t arise. Where as in case of self-employed professionals most of the deals are conducted in cash and leaves a scope of doubt for bankers. Other than this, banks believe that in case of adverse situations, the qualified professionals, like chartered accountants, doctors or engineers, can always land a well-paying job.

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