Banks and financial institutions often ask for documents like salary slips, bank statements, and Income Tax Returns (ITR) to check if the applicant is financially stable. However, some people don't file ITR because they earn below the taxable income limit or are self-employed without formal income proof. So, the question is – can you still get a home loan without an ITR?
Income Tax Return (ITR) is an important document that banks and lenders use to approve home loans. It helps them understand your income, ability to repay the loan, and financial habits. For salaried people, salary slips and Form 16 can prove income, but for self-employed people or those in informal jobs, ITR is the main document to show steady income.
If you don’t have an ITR, getting a home loan might be difficult, but it’s not impossible. Some banks and Non-Banking Financial Companies (NBFCs) may offer home loans without an ITR under certain conditions.
Small Business Owners – Many small shopkeepers, traders, and business owners don't keep proper financial records and may not file ITR.
Freelancers and Gig Workers – People who work on a project basis or earn from different sources may not file ITR.
Farmers and Agricultural Workers – Income from farming is tax-free in India, so many farmers do not file ITR.
Salaried Employees Below the Taxable Income Limit – If your income is below the taxable limit, you may not need to file an ITR.
People Working in Cash Jobs – Some workers, especially in small industries, get paid in cash and don’t have formal income records.
If you do not have an ITR but still want a home loan, here are some ways you can improve your chances of approval:
Choose NBFCs Over Banks – Many NBFCs have more relaxed rules than traditional banks. They may approve your home loan based on alternative income proofs.
Provide Alternative Income Proof – Instead of an ITR, you can submit:
Bank account statements (last 6 to 12 months) to show regular income deposits.
Salary slips (if you are salaried but do not file ITR).
Business invoices, receipts, or sales records (if self-employed).
Rental income proof (if you own property and earn rent).
Apply with a Co-Applicant – If your spouse or family member has a strong income and an ITR, applying for a joint home loan can increase approval chances.
Higher Down Payment – Lenders feel more secure if you contribute a larger portion as a down payment. Instead of the standard 10-20%, you can offer 30-40% of the property value.
Maintain a Good CIBIL Score – A strong credit history can compensate for the lack of an ITR. Ensure you have a good CIBIL score (preferably above 700) by repaying other loans and credit card dues on time.
Show Fixed Deposits or Investments – If you have a strong savings record, fixed deposits, or other investments, banks may consider it as a sign of financial stability.
Employer Certificate or Salary Certificate – If you work in an informal setup but receive a fixed salary, a letter from your employer stating your salary and employment tenure can help.
Loan Against Property as an Alternative – If you own a property, you can apply for a loan against property (LAP) instead of a home loan. Since LAP is secured by collateral, banks may not insist on ITR.
Higher Interest Rate – Since the risk is higher for lenders, they may charge a higher interest rate on the loan.
Lower Loan Amount – Without an ITR, banks may approve a lower loan amount than what you expect.
Additional Documentation – Lenders may ask for more documents like bank statements, property papers, and business records to verify your income.
Longer Processing Time – Since there is no ITR, banks take more time to manually verify income sources.
Getting a home loan without an ITR is tough but possible. While banks prefer people with ITR records, many NBFCs and private lenders offer home loans to those who can show other proof of income. If you have a good CIBIL score, can make a larger down payment, and can show steady income through bank statements or other ways, your chances of getting approved are better. Before applying, compare different lenders, interest rates, and loan terms to find the best deal for you.
We understand that getting a loan can be very stressful with confusing documents, unclear communication, and various other challenges. That is why we take care of your loan application process, saving you time and hassle by handling the paperwork and communicating with the loan providers.
Check the details here at EazyBankLoan
Need help? Reach out at support@eazybankloan.com
Yes, but it depends on the lender. Many NBFCs and private banks offer home loans without ITR if you provide alternative proof of income.
You can submit bank statements, salary slips, business invoices, rental income proof, or investment records.
Yes, banks may charge a higher interest rate since the risk is higher without an ITR.
Yes, but they need to provide other income proofs like business invoices, bank statements, or profit and loss statements.
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