Can I get Home Loan Without ITR?

Let me answer your query,

“Can I get home loan without ITR?”

Yes, you can get a home loan without submitting Income Tax Returns (ITR), but it may require additional effort and may come with specific terms. Usually, ITR is mandatory, however, in some cases like unemployment, and other unforeseen circumstances, one can opt for a few means to get a home loan without an ITR.

Can We Get Home Loan without ITR?

• For the approval of a home loan, you may always count on a co-applicant. Despite this, the co-applicant ought to have access to the ITR paperwork and proof of income. Therefore, you can simply overcome the obstacle of obtaining a house loan approval without an ITR and income verification documents by submitting a joint application. 

• Home Loans Against Special Programs: Many financial institutions, including PNB Housing, offer home loans under special programs for individuals who lack formal income proof or ITR documents. One such offering from PNB Housing is the "Unnati Home Loan" designed specifically for people with informal income sources, like small business owners, shopkeepers, or those earning mainly in cash.

Features to Consider:

• Opting for a home loan without ITR can result in slightly higher interest rates compared to regular loans. Lenders may compensate for the increased risk by offering loans at rates starting at 11.35% p.a.

• For instance, applicants must still meet other criteria like a minimum monthly income of Rs. 15,000 and the ability to demonstrate sufficient income to service the EMIs.

• The loan amount can go up to Rs. 35 lakhs, and the tenure may extend up to 30 years, providing flexibility in repayment.

• Applicants should be prepared to provide alternate forms of documentation to prove income stability, such as business records, rent receipts, or sales statements, depending on the financial institution.

While this option exists, providing ITR or formal income proof makes the loan approval process smoother and more straightforward.

Your query about can I get home loan without ITR should be solved.

Read more

Obtaining a home loan without ITR and income proof is challenging but not impossible. ITRs are typically required by lenders to assess the borrower's repayment capacity and financial stability.

However, certain categories of borrowers and specific circumstances may allow for home loans without ITRs. Here are some key points:

Requirements for Home Loan for Self Employed Without ITR

Individuals like small shop owners, traders, and agriculturists might not always file ITRs. Lenders might consider other financial documents like bank statements, sales receipts, and GST returns.

If a salaried person hasn't filed ITRs but has a stable income and other proofs of employment and income, lenders may still consider the loan application. NRIs might face challenges in providing ITRs but can submit overseas income proofs and employment contracts.

Documents to Submit for Home Loan Without ITR and Income Proof

Instead of ITRs, lenders might ask for:

• Bank Statements: Detailed statements for the past 6-12 months to track regular deposits and financial transactions.

• Form 16: Issued by employers, Form 16 certifies that tax has been deducted at source and provides details of the income.

• Employment Proofs: Employment letters, contracts, or certificates from the employer.

• Audited Financial Statements: For self-employed individuals, audited balance sheets, profit & loss accounts, and other financial records might be required.

• GST Returns: For business owners, these returns can serve as a substitute for ITRs to show business income and expenses.

Lenders might offer higher interest rates or sanction lower loan amounts to compensate for the perceived risk of lending without ITR documentation. Borrowers might be required to make a larger down payment to reduce the loan-to-value (LTV) ratio, thereby minimizing the lender's risk.

Different lenders have varying policies regarding loans without ITRs. It's essential to shop around and consult multiple banks or financial institutions. This is all about home loan without ITR and income proof.

Read more

The process of approving a home loan mainly entails checking an applicant's eligibility, starting with their KYC, ITRs, credit reports, and property records. Therefore, the application and approval processes for home loans require the submission of documents including ITRs and income documentation. They cannot typically go unaccounted for. However, under certain conditions, you can apply for a home loan without ITR by proving your ability to make full and on-time EMI payments. 

Can I get home loan without ITR?

Yes! without ITR home loan sanction can be done, through any of the following ways;

• Get a Co applicant:

You can always count on a co-applicant to get your home loan approved. However, the co-applicant should have the ITR records and proof of income on hand. Therefore, you can simply overcome the obstacle of securing a house loan approval without an ITR and income verification documents by submitting a joint application.

• Choose Low LTV:

You might choose a low Loan to Value (LTV) ratio to increase your chances of receiving a Home Loan without providing evidence of income or ITR. That entails taking less money from the financial institution as a home loan amount, which would lower your entire obligation.

• Reach out the Bank representatives:

Reaching out to your customer relationship manager or the representatives of your current financial institution and outlining your circumstances is the third approach to obtain a home loan without ITR. 

Assure the institution that you will be able to pay back the loan and, if possible, provide proper documentation going forward. Your savings account should be with this banking institution. 

If you have been a consistent customer over the years and your KYC is complete, the officials will assist you in getting a home loan without ITR.

Read More:

When I was young, I had no idea about ITR. Later on, I learned  how it affects a borrower's ability to get a home loan. ITR stands for Income Tax Return. It's a legal document that shows income details earned by you in a financial year and the tax which needs to be paid on that income. Keep reading to know about home loan without ITR.

Can I get home loan without ITR?

Banks and financial institutions use ITR to measure a borrower's income and ability to repay the loan. Banks and financial institutions require ITR as proof of income and creditworthiness before approving a home loan.

The Reserve Bank of India has recently announced that banks and financial institutions can  approve home loans to borrowers without ITR if they have a good credit score and can provide income-related documents that proves so.

Banks usually don't give home loans without ITR. If you want to avail a home loan without ITR, you  provide other income-related documents such as salary slips, bank statements, or Form 16 to demonstrate your income. Without ITR home loan lenders offer loans with higher interest rates and stricter repayment terms than traditional lenders.

If you're self-employed, having an ITR is crucial. Self-employed individuals might not have income-related documents like salary slips or Form 16, making ITR  the primary document that

lenders will look at to determine creditworthiness. Other documents you will need for home loan without ITR are : 

• Application form

• Identity proof

• Address proof

• Passport size photographs

• Last 6 months bank statement

• Processing fee cheque

Read more:

[widget_homeLoan_checkEligibility_form]