So, I just spoke with my bank home loan dept. They said they do not accept any income from stock market (stocks, F&O etc.) or even debt mutual funds as a primary source of income. I am a full time trader.
I do have the cash to buy a home in debt fund which is pledged to get margin for F&O. I am earning more interest income from debt mutual fund than the EMI itself. Still…
What do I do now? How did you convince your bank to offer you a home loan as a full time trader?
A solution I have been thinking is, register a company in Singapore. Shift some capital there and invest in some US based index etfs along with some gold for asset diversification. Make my wife an employee and let her withdraw a salary of 1L per month. Take a home loan on her name as she will have a job with a fixed salary.
Try Piramal Finance. Their tagline is ‘Hum Kagaz Nahi Niyat Dekhte Hain’. And in your case, you have Kagaz as well since your income is enough to pay off this loan
Zerodha capital also does. But He needs a home loan without collateral (other than the house itself). He needs the securities, which are pledged for margin for his F&O income. He cannot pledge it somewhere else.
Why make this complicated?
Start a micro-business (fully online in few minutes IIUC) with your wife providing “administrative services” - pay her the trading income and she can pay off the loan.
Nice idea. But again, generating revenue from a micro business is not easy… Will need to invest a lot of time to generate enough revenue to justify the salary of min 1 lakh per month.
You could’ve just said business income from retail trading, ITR, CIBIL score and be done with it, IMO. I don’t think there is any need to let them know about the type of inventory that you’re trading. Talk to the manager or a different branch. Apply anyway online and let them reject with a written reason which you can use it to claim discrimination or whatever before ombudsman.
Is it not the banks right to lend to people or sector of their choice.
The-reason for declining such request is because there is no steady income flow to repay the debt. This is a accepted norm. Cannot file discrimination etc against the bank for refusing a loan. It is the banks right.
Not really. If the rejection reason is purely commercial, yes. But if it was done unfairly/discriminated in any way or form, you have the right to file suit.
The interest income from debt fund should be a source of steady income. I have 3 times more in liquid cash than the amount of loan I am asking. Logically speaking, it is a no-brainer as the risk is so low. They said, if I put the money in bank fd and tie it up as collateral only then I can get a home loan. It makes absolutely no sense for me as bank fd interest after tds will be less than the home loan interest. I will still try to talk to more banks and more people. It was an experience just with 1 guy from 1 bank.
