Introduction: Overcoming Home Loan Challenges
Securing a home loan can be a complex process, especially for individuals who may not meet traditional income eligibility criteria. This case study highlights how we assisted a 55-year-old steel manufacturer from Tondiarpet, Chennai, in obtaining a home loan despite facing multiple rejections. Through strategic financial planning and banking support, we helped him achieve his dream of owning a home in Tiruvottiyur.
Understanding the Customer’s Situation
Our client, a successful steel manufacturer operating a cash-and-carry business, approached us with a unique challenge. Despite having a well-established business, he lacked the formal income documentation typically required by banks for home loan approvals. This was primarily due to the nature of his business operations, where most transactions were conducted in cash, making it difficult to establish a verifiable income stream through IT returns.
Adding to the complexity, the customer had already approached three different loan agents, including Samman Capitals, without success. Each rejection was due to his inability to meet income-based eligibility criteria. Frustrated but determined, he turned to us for a solution.
Our Strategic Approach: Banking and Financial Structuring
Understanding that traditional income verification would not work in this case, we took a different approach. Our strategy focused on strengthening his banking profile and demonstrating financial stability through an alternative method. Here’s how we structured our plan:
- Three-Month Banking Transaction Strategy:
- We advised the customer to maintain regular banking transactions over three months, ensuring a steady cash flow was reflected in his bank statements.
- His average bank balance (ABB) was carefully managed to align with home loan eligibility requirements.
- By maintaining a strong banking record, we helped him establish a pattern of financial stability that lenders could consider.
- Utilizing the Banking Program ABB Scheme:
- We identified the ABB (Average Bank Balance) scheme as a suitable financing option for his case.
- Under this scheme, his well-maintained bank balance was used as an indicator of financial health, allowing him to qualify for a loan amount of Rs. 1.5 crores.
- Choosing the Right Lender and Structuring the Loan:
- Given his history of rejections, we carefully selected a lender that considered alternative eligibility criteria.
- We structured the home loan for an individual house in Tiruvottiyur, measuring 1800 sq. ft., with a loan tenure of 20 years at a competitive interest rate of 9.4%.
- Our team ensured all documentation, including property verification and loan structuring, was completed seamlessly.
A Successful Outcome: Achieving the Dream Home
Thanks to our strategic financial planning and banking structuring, the customer successfully secured his home loan. The approval of Rs. 1.5 crores enabled him to purchase his dream home in Tiruvottiyur without compromising on his financial stability.
One of the most rewarding moments came when the customer invited us to his housewarming function, expressing immense gratitude for our efforts. Beyond securing the loan, we built a strong relationship of trust, leading him to refer several clients to us who faced similar financial hurdles.
Conclusion: Empowering Clients Beyond Just Loans
This case study demonstrates that securing a home loan isn’t just about paperwork—it’s about understanding each client’s unique financial situation and finding the right solution. At our core, we don’t just help people get loans; we empower them with financial strategies that work.
If you or someone you know is struggling to secure a home loan due to income documentation challenges, reach out to us. We’re here to support, guide, and help you achieve your homeownership dreams, just like we did for this Chennai-based steel manufacturer.
Need Assistance with Your Home Loan? If you’re facing challenges in securing a home loan, let’s work together to find a solution. Contact us today and take the first step toward your dream home!
