Even though India’s banking sector has developed steadily in the past few years, a vast majority of the country’s population are yet to receive proper financial services and facilities. According to the Times of India, India has the second-largest under banked population in the world at 190 million people.
This is one of the principal reasons why many individuals with a steady source of income still do not hold any proof of income. Additionally, freelancers or self-employed individuals also might not be able to obtain official documents to attest as proof of their earnings.
Now, even though Income Tax Returns and salary slips are required documents to avail advances from financial institutions, there are a few ways through which a prospective applicant can avail the credits without supplying the same. Following is a guide to help individuals avail a loan against property without ITR or other income proof.
How to Avail this Advance Without Income Proof?
Financial institutions require income proof to evaluate a borrower’s repayment capacity and understand the risk associated with lending. Now, since loan against property is a secured advance and individuals have to pledge collateral to avail it, lenders might sanction the advance without ITR submission, provided that individuals satisfy the eligibility criteria and submit the other required documents.
The present market value of the property to be mortgaged also plays a vital role in availing the advance without income proof.
Apart from these, individuals can follow the tips below to avail a loan against property without ITR –
- Avail the Loan with a Co-Applicant – Applicants can choose to apply jointly with their spouse, parents, son or unmarried daughter, who has a steady source of income and a valid income proof to avail the advance. If you avail the advance with a co-applicant, it not only increases your chances of getting the loan approved without hassle, it also allows you to avail a higher loan amount.
- Justify the Unavailability of Income Proof – Filing for income taxes is extremely crucial for individuals earning taxable proof, failing to do, which might have several legal ramifications. Thus, borrowers looking to avail the loan against property without their income tax returns must make sure to provide valid justifications for not holding the same. One can also seek advice from an income tax consultant to determine the proper course of action before applying for the advance.
- Consult your Financial Institution’s Relationship Manager – To apply for a loan against property without ITR, individuals can consult with their lender to learn whether there is any other reassurance that they can provide to avail of the advance. Discussing the situation with the authorized personnel can make the process of availing the advance hassle-free.
- Maintain a High Credit History – When you apply for an advance, your credit history is reviewed to gauge your repayment history with previously availed credits. A high credit score can affect your loan against property eligibility and provide lenders with the reassurance of your steady repayment history. Thus, to avail a property loan without income proof, individuals must make sure to have a high credit score.
Following these few tips can help individuals to an extent to avail the advance without proof of income. However, it is crucial for individuals to ensure that they satisfy the other eligibility criteria and provide the documents necessary to avail it.
For instance, most lenders require borrowers to be Indian residents and comply with a certain age group to be eligible to avail the advance. Apart from this, individuals also have to submit a list of documents needed to apply for a loan against property without hassle.
They are –
- KYC documents
- Documents of the property to be mortgaged.
Individuals who fulfill these eligibility criteria can avail a high loan amount value of up to Rs. 3.5 Crore from NBFCs.
The institution also provides pre-approved offers which can make availing the advance faster and easier. These offers are available on several financial products, including home loans, personal loans, business loans, etc. You can check your pre-approved offer by sharing only your name and phone number.
Make sure to take care of any other formalities put forth by your financial institution to avail the advance without income proof. Also, to avail these offers and other benefits from your mortgage loan, make sure you comply with the eligibility criteria and supply the documents mentioned above.
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