Do not have an income tax return (ITR) but are looking for a personal loan? Worry not! Though many lenders ask for an ITR to check your income and ensure you can repay the loan, there are ways to get an instant personal loan even if you do not have one. In this brief guide, let’s dive deeper into the topic and understand how to get a personal loan without ITR. You would also learn the importance of ITR, tips on getting an instant loan without ITR, documents required for a personal loan without ITR, and more.
What is an ITR?
An Income Tax Return (ITR) is a form that you file with the government to report your income for the year. It is a way to show how much money you earned and whether you paid the right amount of taxes. Personal loans on ITR are quite common as lenders often ask for ITR to confirm if you have a steady income and can repay a loan.
Importance of ITR
ITR shows your income over the past financial year and hence, it is proof that you have a regular income. It makes it easier to get a loan, especially if you are asking for a large amount. Having an ITR would help you get lower interest rates as it shows you are a low-risk borrower. Filing ITR also allows you to claim tax deductions, and if you file it regularly, then it would boost your credit score.
Scenarios Where You Might Not Have an ITR
- Freelancers or small business owners may not file ITR if their income is below the taxable limit.
- If you just started working, you might not have filed an ITR yet.
- If you are currently not working, you might not have an ITR.
- Senior citizens living off their savings might not need to file an ITR.
Alternative Documents and Proofs to Secure a Personal Loan Without ITR
Here are the documents required for a personal loan without ITR:
- Bank statements for the past 6-12 months
- Recent pay slips from your job
- Form 16 from your employer
- GST returns for business owners
- Rental income proof
- Property documents, if you own a property
- Investment proof
- An excellent credit score
Eligibility Criteria for Personal Loan Without ITR
You can still avail a personal loan even if you do not have an ITR. However, there are certain eligibility criteria you need to fulfil to avail the loan. With CASHe, here are the conditions you need to meet to get an instant loan without ITR:
- Nationality: Indian
- Age: Between 21 and 58 years
- Credit Score: A credit score of 600+ is recommended
- Income: A minimum monthly income of 50,000.
- Bank Account: An active bank account with regular income deposits.
Why Do Lenders Ask for ITR?
Now, comes the question – why do lenders ask for ITR? What is the need for ITR for personal loans? Though the main reason is to check your income history, here are the significant objectives of ITR:
- It shows and validates your regular income.
- Helps lenders decide if you can repay the loan.
- Without ITR, lenders see you as a risky borrower.
- To decide the loan amount as higher the income on ITR, the higher the loan amount.
Types of Personal Loans Available Without ITR
- Secured loans where you provide something valuable like gold or property as security
- Instant personal loans from apps like CASHe
- Loans secured by your investments such as shares
- Loans based on your salary slips and bank statements
- Loans from Non-Banking Financial Companies
- Loans against salary account
Tips for Securing a Personal Loan Without ITR
- Always keep an excellent credit score
- Use bank statements, salary slips, or other documents to show income
- Offer something valuable as security can help you get a loan
- Choose the right lender like CASHe
- Keep your existing loans and debts manageable
- Start with a smaller loan amount, If it is your first time borrowing without ITR
Impact of No ITR on Loan Terms and Conditions
There are several influences a personal loan without ITR and the personal loan on ITR bring to loan terms and conditions. If you are taking out a loan without ITR, here’s how it may impact the loan terms and conditions:
- You may need to pay more interest to the lender because of the higher risk.
- Lenders may approve only a small loan amount than what you need.
- Lenders may ask for salary slips, bank statements or security.
- Some lenders may ask you to provide something valuable like gold or property.
Conclusion
This is how you can get a personal loan without ITR. Now, if you are looking for an instant personal loan without income proof and with competitive interest rates, then download the CASHe app. CASHe offers instant personal loans without ITR and provides a simple and fast way to apply for a loan with minimal paperwork. So, wait no further, and explore instant personal loan options today!
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