How many years ITR required for home loan?

Wondering about

how much ITR required for home loan

. In India, the requirement for Income Tax Returns (ITRs) when applying for a home loan generally spans over the past 2-3 years. This requirement can vary slightly depending on the lender and the borrower's profile.

How Many Years ITR Required for Loan?

ITRs are crucial documents that demonstrate a borrower's financial stability, income consistency, and ability to repay the loan.

Consistent income over 2-3 years, as shown in ITRs, indicates financial stability. This is especially important for self-employed individuals and professionals, as their income might fluctuate.

Filing ITRs regularly shows that the borrower is compliant with tax laws, which adds to their credibility. It reflects financial discipline, making lenders more confident in extending credit.

The income details in ITRs are used to calculate the eligible loan amount. Higher and consistent income generally leads to higher loan eligibility.

How Many Years ITR Required for Home Loan for Different Borrowers?

1. Salaried Employees: Typically, salaried employees are required to provide ITRs for the last 2 years. They also need to submit salary slips and Form 16 as additional proof of income.

2. Self-Employed Individuals: For self-employed professionals or business owners, lenders usually require ITRs for the last 3 years. This is because their income can vary, and a longer period helps in better assessment of their earning patterns.

3. NRIs (Non-Resident Indians): NRIs might need to provide ITRs for up to 3 years, along with additional documents like employment contracts, salary slips, and bank statements.

In summary, while the exact number of years may differ slightly among various lenders, the general requirement for ITRs when applying for a home loan in India ranges from 2 to 3 years.

This practice helps lenders ensure that the borrower has a stable and verifiable source of income, thereby minimizing the risk associated with the loan. This is all about how many ITR required for home loan.

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Can I Get Home Loan Without ITR?

Back in 2018 I was planning to buy a house. So just like you, I had some queries and one of them was how many years of ITR for home loan will be required. I was just aware that banks do ask for them but wasn’t sure for how many years. Anyway, I believe I can give you a comprehensive answer to this. Also, I will tell you why ITR is asked for while applying for a home loan. What is ITR and why is it important for home loan? ITR is Income Tax Return which is filed by the individuals who earn income as a form of salary from employment or self employment. There are 7 types of ITR form and each has its own purpose. ITR is important while applying for a home loan as it gives lenders an idea about the genuineness of income of the individual and the repayment capacity they hold. If an individual fails to produce ITR, lenders can ask the borrower to submit Form 16. Here is a detailed table explaining how many years ITR required for home loan:

Financial Institution	ITR requirement (in years)
Axis Bank	2
HDFC Bank	3
Kotak Bank	2
SBI	2
LIC Housing	3

I hope now you know how many years of ITR for home loan is required. Check out the amount of home loan that you are eligible to get through this, [widget_homeLoan_checkEligibility_form] Read more: How to file ITR for deceased person How to file ITR without form 16 How to file income tax return online for salaried employee