Can my maid get a home loan without regular income or salary slips? Things to note in such cases

My maid is a cash income worker. My house help earns entirely in cash and doesn’t have salary slips or formal income proof. She dreams of buying a small flat and wants to know if it’s even possible to get a home loan with such an irregular income. What kind of documents would she need, and how can she improve her chances with banks or housing finance companies?

Advice by Pankaj Gadgil, MD & CEO, Aditya Birla Housing Finance

Securing a home loan isn’t always straightforward, especially if your income is irregular or if your under-construction property faces delays. From domestic workers with cash earnings to salaried buyers dealing with stalled projects, each case comes with unique challenges. But with the right documentation and financial planning, solutions do exist—even for the most complex borrowing situations. 

Getting a home loan with irregular or cash-based income can be challenging, but not impossible. Many individuals, including domestic workers and gig workers, often earn in cash and may not have formal income records. However, with the right steps and documentation, lenders are increasingly open to evaluating such applications.

Here are some ways anyone with an irregular income can improve their chances of getting a home loan:

> Regular Bank Deposits

Some lenders offer loans based on bank statements. If the individual deposits her cash income regularly, it helps show a steady income flow and repayment capacity.

> Adding a Co-Applicant

Including a family member with a stable income can strengthen the application and improve loan eligibility.

> Self-Affidavit of Income

A simple, notarized declaration on monthly earnings and employment status can improve eligibility of loan sanction. 

> Proof of Side Income

If she earns from additional work, providing records or transaction history can show business continuity and income consistency.

> Government Schemes

Home loan schemes like PMAY (Pradhan Mantri Awas Yojana) are designed to support lower-income groups with interest subsidies, making home loans more affordable and accessible.

While traditional documentation might be limited, there are alternate routes to securing a happy home loan. With careful planning and the right support, homeownership is possible—even for those with irregular income.

If my property's construction gets delayed, how does it affect my home loan disbursal and EMI payments?
 

If your property’s construction gets delayed, it can impact your home loan disbursal and EMI payments in the following ways:

1. Loan Disbursal Impact

Stage-Wise Disbursal: For under-construction properties, banks release the loan amount in phases, aligned with the construction progress and payment schedule. Any delay in construction can lead to corresponding delays in subsequent disbursals.

Reassessment by Lender: In case of significant delays, the bank may reassess the project’s viability. If the project is considered high-risk, the lender may withhold or halt further disbursals altogether

2. EMI Payments

Pre-EMI Phase:

> If the full loan amount hasn't been disbursed, you generally pay only the interest on the disbursed portion as Pre-EMI.

> Construction delays can prolong the Pre-EMI period, increasing your overall interest outflow.

Full EMI Commencement:

> Some banks may begin full EMI payments (principal + interest) after a fixed period—typically 2–3 years—regardless of construction status.
> In such cases, you may start repaying the full loan without having taken possession of the property.

Financial & Legal Risks

> Higher Cost Due to Extended Pre-EMI: Delays can significantly increase interest burden even before moving in.

> Delayed Tax Benefits: Tax deductions under Section 24(b) (interest) and Section 80C (principal) are applicable only after possession, so any delay in construction also postpones these benefits.

> Risk of Stalled Projects: If construction is indefinitely halted, you may be burdened with repaying a loan on a property that is not delivered.