Last minute sputtering of the car engine left you with an unexpected car repair bill? Or a sudden requirement of money to send your kid to a student exchange program come your way? Did any medical emergency appear suddenly where you need cash but haven’t filed your ITR for various reasons? We understand it’s not easy to run a house without needing extra cash for sudden needs. On top of that, we have to pay taxes here and taxes there, basically taxes everywhere. But what if your tax filing game is not strong, and you still need some money?
This blog will explore how you can still secure a personal loan despite missing ITRs. We will discuss alternative ways to prove your income, alternative sources of loans, and how to navigate the loan application process confidently. Let’s find a solution together.
What is ITR required when applying for a traditional personal loan?
ITR stands for Income Tax Returns. They might look complex, but they are the backbone of your financial profile. Your ITR reflects your repayment capacity and financial stability. It acts as proof of income and offers lenders assurance about your ability to repay the loan. Although ITR is essential for salaried individuals and self-employed professionals, some online loan websites provide alternatives for applicants without ITR.
ITR is like a financial resume, which contains all the transaction history and financial capacity-related information that is important to a lender.
Importance of credit scores in getting a personal loan without ITR
The most crucial proof when applying for a loan without ITR is your credit history. Many online loan websites like Stashfin have a credit score analyzer that analyses your transaction history and calculates your credit score. Also known as CIBIL score, this number should ideally be more than 650. You must build and maintain a good credit score in order to get a loan without ITR. Banks consider a CIBIL score of 730 and above a good score for any loan. However, you may also get an instant personal loan, depending on your credit score. A higher CIBIL score may also help you get a personal loan of a higher amount, and that too at a lower interest rate.
Importance of repayment history in getting a personal loan without ITR
Another crucial report that makes you a promising candidate for a loan is your repayment history. The bank goes beyond your CIBIL score when evaluating your loan application. They check your previous or present loans’ repayment history. If you have made your monthly repayments on time, it shows you have good credit discipline, and lenders prefer lending to such customers.
How can we get a personal loan without ITR?
Nothing is impossible. The digitization of financial procedures and formalities has made it possible. Financial solutions are evolving, and so are your possibilities. Personal loans without ITR are commonly issued to self-employed individuals with irregular incomes, small business owners who do not file regular tax returns, and even freelancers who do not have conventional financial documentation. It is even accessible to salaried individuals with the same ease.
What are the documents required to apply for a personal loan without ITR?
To apply for a personal loan without ITR, you will require the following documents:
• Identity proof (Aadhaar card, PAN card, etc.).
• Address proof (utility bills, rent agreement, etc.).
• Bank statements for the last 6-12 months.
• Income proof (This includes salary slips, business invoices, or alternative proof).
What is the process of loan application without ITR?
There are always more ways than the obvious to get access to financing without typical paperwork. Unlock instant funds without ITR with online loan websites that also offer a flexible repayment tenure and no collateral benefit. To ensure you can focus on your goals without financial hurdles, the following are the steps of application:
1. Search for banks or online loan apps/websites that offer instant personal loans without ITR.
2. Prepare your documents and proof of income.
3. Apply through the lender’s portal and reach out for customer support.
From where can we get personal loans without ITR?
Several financial institutions allow loans without ITR. These include:
- NBFCs that deal with loans for self-employed professionals.
- Online loan websites that provide instant personal loans without ITR.
- Private lenders are ready to disburse loans based on alternate documents such as bank statements.
How a Financial Service is Revolutionizing Emergency Cash
How can we increase the chances of loan approval without ITR?
Applying for a loan with just minimal documentation and getting it approved without collateral and no irritating formalities. Sounds like a dream come true? This is possible because of the alternative documents that must be furnished digitally in order to proceed with the application. But if you want to improve your chances of loan approval, then you may follow these suggestions to increase your chances of approval without ITR:
- Good credit score that indicates creditworthiness
- Complete bank statements with regular income
- Co-applicant with stable income or good credit history.
- Transparency with the lender about your financial situation.
Getting a personal loan without ITR is possible with the right approach. You may not have regular tax filings, but if you have strong alternate documentation and a good credit history, then your chances of loan approval are automatically high. While a personal loan without ITR comes as a rescue for many, it is important to borrow responsibly and understand the terms thoroughly. With proper planning, you can achieve your financial goals seamlessly.
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