Loan Against Property Without Income Proof and ITR 2024

A loan against property (LAP) is a kind of loan that can be obtained against a residential or commercial property registered in your name. If you have a self-owned property, you can approach lenders for a loan against your property. The lender will assess your property’s market value before sanctioning the loan amount. If the title of the property is clear, the lender can approve up to 90% of the market value of the property as a loan amount which can be used for any purpose like education, expanding your business, studying abroad, medical treatments, taking a vacation, and so on.

Most lenders will need you to provide income proof as getting a loan against property as well as a home loan without income proof is difficult. This is because you must prove you are employed and earning a regular income. Most banks do not offer a loan against property for unemployed.

If you want to get a mortgage loan without proof of income, the process can be lengthy and complicated. You can conduct research on which bank gives home loan without income proof, loans that don’t demand a lot of documentation, or simply choose a smaller loan amount to increase your chances of approval.

Following are some common documents required to apply for a property loan without income proof and ITR:

• Identity proof: This may include any government-issued identification card such as a valid passport, driver’s license, etc.
• Address proof: Recent utility bills or bank statements showing your current address.
• Credit report: A copy of your credit report so that the banks can assess your creditworthiness.
• Asset documents: If you are applying for a secured loan like a loan against property, you will have to provide documents related to the asset being mortgaged as collateral, such as the title or registration papers of the property.
• Guarantor information: If you are co-borrowing a loan with a guarantor, you will have to provide their personal as well as financial information, such as proof of identity and income.
• Business documents: You will need to share business profit & loss sheets with the bank. This is applicable in case you are using the business profit as your source of income.

If you wish to know how to get loan against property without income proof, you can follow the tips mentioned below to get a loan against property without income proof in Chennaior another city in India:

• Talk to Your Relationship Manager: If you’re holding a savings account with any bank, the bank will assign a relationship manager to you, who will be your point of contact for all your queries. In case you do not have a relationship manager, you can just walk into your bank branch and ask the staff to connect you to the right person. Try assuring that person that you will make your payments without a miss and ask them if they can provide you with a LAP without income proof document or ITR.
• Apply with a Co-Applicant: If your spouse, parent, sibling or any other family member has a strong credit history and a regular source of income, you can add them as a loan co-applicant. Doing this will increase your chances of getting loan approval.
• Explain Your Income: Before loan approval or rejection of your loan application, the lender will send an officer to your property for inspection. During that time, you can explain your income source properly. For example, if you run a business or can pledge a commercial property, then provide accurate income information to the concerned officer. Also, tell the officer about not having an income proof or ITR. The officer will keep that information in mind when calculating your annual income and judging your repayment capacity.
• Provide Explanation for Not Having an Income Proof: If you have not filed your ITR for the previous year, explain the genuine reason to the officer. Also, it is recommended to consult a tax consultant and file your taxes for the current year.
• Check Your Savings Bank Account: While approving a LAP application, the lender will look at your banking transactions to check your spending habits. If you have good banking history and have maintained sufficient funds in your account regularly, the chances of loan approval also increase. Your average bank account balance should be twice your proposed EMI. You can use the online loan against property calculator to calculate your LAP EMI.
• Choose Lower LTV: LTV (Loan to Value) is the percentage of the loan that the lender will provide. For example, if the lender is offering 90% LTV, the borrower has to pay the 10% margin from their own pocket while the 90% is funded by the lender. If you don’t have income proof or ITR, you can request the lending bank to offer you a lower LTV. However, you must understand that choosing a lower LTV means you will have to pay the remaining amount from your pocket.
• Consider P2P Lending Options: Peer-to-Peer (P2P) lending has become increasingly popular nowadays. Funds are raised through crowd-funding in P2P platforms and are disbursed to the eligible borrowers at a slightly higher interest rate as the risk factor is high under P2P lending. If you don’t have valid income proof, P2P lending could be an option.

ITR is one of the crucial documents required to apply for a loan against property. If you cannot furnish any documents (including ITR) deemed necessary by the lender for LAP, your loan application might get rejected.

ITR (Income Tax Return) is a form in which taxpayers provide information regarding their income and applicable taxes to the Income Tax Department. ITR is important for availing of a LAP. However, if your loan requirement is not too high, some private lenders and Non-Banking Financial Companies (NBFCs) may offer loan against property without any income proof.