How to Get a Business Loan Without Filing ITR

Running a business in India is no longer limited to those with a perfect paper trail. If you’re a small business owner or a self-employed individual who hasn’t filled in an Income Tax Return (ITR), you might wonder if securing a Business Loan is even possible. While traditional lenders view ITR as a key document to access your creditworthiness, many NBFCs now offer more flexible options. In this blog, learn more about how to get Business Loan without ITR, the alternative documents you can submit, and how to meet the Business Loan eligibility criteria without a recent tax return. 

Is it Possible to Get a Business Loan Without ITR

Yes, it is. While ITR documents are commonly used to evaluate your income and repayment capacity. Today, they are not the only way to prove your business credibility. Several financial institutions and new-age digital lenders in India are willing to look beyond ITRs – especially if you have other valid documents and a steady cashflow.  

How to Get a Business Loan Without ITR  

If you haven’t filled in your ITR, you will need to strengthen other aspects of your loan application. Here’s a step-by-step guide: 

1. Maintain a Healthy Credit Score  

Your credit score plays a pivotal role when ITR is missing. A score above 750 indicates responsible credit behaviour and can boost your loan approval chances significantly. 

2. Prepare Alternative Proof of Income

Instead of ITR you can show the following: 

• Bank statements for the past 6-12 months 

• GST returns 

• Sales or purchase invoices 

• Financial statements which are audited by a CA 

3. Choose the Right Lender

Approach the lenders who have more flexible eligibility requirements. Many financial institutions now offer Business Loan without ITR, if you can demonstrate consistent income through other documents. These lenders are often more open to evaluating alternative financial proofs and understanding your business model beyond traditional metrics.  

Business Loan Eligibility Criteria Without ITR 

Even without an ITR, you can still meet the eligibility requirements set by your lender. They typically evaluate your application based on your overall financial health and credibility of your business. Here are some of the followings: 

• Your identity and business ownership proof 

• The stability and continuity of your business operations 

• Your credit score and repayment history 

• The consistency of your business income 

• Bank transaction patterns that reflect healthy cash flow 

Documents You Can Submit Instead of ITR

When ITR documents are not available, lenders may accept alternative paperwork that reflects your financial standing and business operations. These can include: 

• Personal and Business KYC documents 

• Business registrations or licensing certificates 

• Bank account statements 

• GST filings or invoices from sales and purchases 

• Financial statements such as balance sheets or profit and loss reports 

• Proof of business address, such as a rent agreement or utility bill 

To Conclude

With the rise of digital lending getting a Business Loan without ITR is not only possible but is becoming increasingly common. The key lies in demonstrating your business’ financial stability through alternative documents and maintaining a good credit score. If you are looking for a hassle-free loan, Poonawalla Fincorp offers a Business Loan of up to ₹75 lakh with minimal documentation and flexible repayment tenure of up to 48 months. 

Frequently Asked Questions

1. Is it possible to get a business loan without filing an ITR?  

Yes, it is possible to get a business loan without filing an ITR. Many financial institutions and digital lenders in India offer loans based on alternative documents and a steady cash flow. 

2. How important is my credit score when applying for a business loan without an ITR?  

Your credit score is very important. A score above 750 indicates responsible credit behavior and can significantly boost your chances of loan approval. 

3. How can I improve my chances of getting a business loan without an ITR?  

Maintain a healthy credit score, prepare alternative proof of income, and choose lenders with flexible eligibility requirements. Demonstrating consistent income and stable business operation is key.