Housewives who are busy with household management do not have a regular source of income. Even if they are called ‘housewives’, they only have access to the house, not control. Some do not even have a property in their name.
Do banks and financial institutions provide home loans to housewives who do not have a regular income? Sandeep Nepal of NMB Bank’s retail loan branch says that it will be difficult for a housewife who does not have a regular income to get a home loan.
He said that there should be regular income to pay the installment of the property and interest on the bank. Nepal Rastra Bank has made an arrangement to take taxable income to get a loan. Earlier, if the bank knew the housewife, could trust her and convinced her that the woman had invisible resources to repay the loan, then it was customary to give the loan even considering the self-declaration as an income.
However, according to a circular issued by the National Bank last year, banks and financial institutions cannot give any loan on the basis of non-disclosure of the source of income. Everything should be transparent. Now anyone who goes through the loan process asks the bank for a certificate of income tax payment. According to Nepal, banks can give loans only on the basis of proof of income after payment of taxes by the customer.
According to the new arrangement, housewives without regular income are less likely to get loans.
However, there are a number of grounds on which a housewife can obtain a loan. It is not necessary to take a loan from a bank or a regular business income. A housewife can get a loan by claiming taxable income from agriculture or taxable household income as her own income.
NRB has also made arrangements for the concerned ward to certify that it has been engaged in agriculture since last year. Ward’s recommendation and other evidence should be submitted to the bank for the loan process. Some banks can consider 50 percent if someone comes with a recommendation to earn Rs 1 million.
In order to show the income of agriculture in some banks, it is compulsory to submit the certificate of company registration, certificate of payment of income tax from agriculture, proof of regular income in the future.
There is also a third possibility for a housewife to take a loan from a bank after agricultural income and house renovation. A housewife with no regular monthly income can take a joint home loan with her husband or other family members with regular income.
Generally, the basis of income shown by a housewife in a bank is agriculture, housekeeping, business income, and salary. Self-declaration should be certified by the concerned ward.
Nepal Rastra Bank has made a policy arrangement to provide seven types of concessional loans. In which financial assistance of Rs. 3 to 1.5 million can be obtained. In some cases, housewives are also earning at home. They are working on a commission basis as agents in online work, home enterprise, various organizations. Banks can give loans if the income earned in different ways at home can be made taxable income.