Personal Loan Without ITR: Everything You Need to Know

Getting a Personal Loan without an ITR may seem challenging, but it’s far from impossible. In fact, many lenders today recognize that not every eligible borrower fits into a one-size-fits-all mold. So, if you haven’t filled in your ITR yet, there are ways to access the financial support you need. With flexible documentation norms and alternative income proofs, securing a Personal Loan without ITR is now more achievable than ever.
In this blog, you will discover how it works, who can apply, and what steps you can take to improve your chances of approval. Read on!    

Why Do Lenders Ask for Income Tax Return (ITR) 
 

When you apply for a Personal Loan, lenders want to be sure that you can repay the loan on time. Here’s why ITR plays a key role:

•    Proof of Income: ITR provides a reliable record of your earnings over a period.
•    Repayment Capacity: Lenders use it to assess your ability to handle EMIs.
•    Financial Discipline: Regular ITR filings suggest that you’re financially responsible.
•    Compliance Check: This confirms that you comply with government regulations.

If you’re a salaried individual, then salary slips and form 16 will suffice. However, if you’re self-employed, ITR often becomes the primary document to prove your income. 

How to Get a Personal Loan Without ITR

Even if you haven’t filed your ITR or don’t have the documents ready, you can still access funds. Here’s how you can boost your chances:

1.    Show Alternate Income Proof
You can present other documents that can validate your income. These include:
•    Bank statements
•    Salary slips or employment offer letter
•    Form 16 or TDS certificates
•    Business income records, such as GST filings or sales invoices

2.    Apply with a Co-applicant or Guarantor
Adding a co-applicant with a good credit history and valid income proof can strengthen your loan application. Lenders feel more confident when there’s another income source backing the repayment.

3.    Maintain a Good Credit Score
A high CIBIL score (750 and above) can help compensate for the absence of ITR. It shows that you have managed past loans or credit cards dues responsibly.

4.    Approach NBFCs or Digital Lenders
Unlike traditional banks, these lenders often have flexible eligibility criteria. In fact, many lenders are open to offering Personal Loan without ITR, provided you meet other loan terms and conditions.

5.    Start With a Smaller Loan Amount
Applying for a lower loan amount increases your chances of approval. Once you build repayment history and trust with the lender, you can apply for higher amount in the future even without ITR.

Who Can Apply for a Personal Loan Without ITR

You can still apply for a Personal Loan even if you don’t have an ITR – provided you meet certain conditions. Here are a few scenarios where lenders may consider your application:

•    You’re a First-time Employee: If you have just started your career and haven’t completed a full financial year filing your ITR, you can still qualify for a Personal Loan. Just make sure you have your offer letter, salary slips, or bank statements showing salary credits.
•    You’ve Recently Changed Jobs: If you have moved to a new job or career path and your ITR isn’t updated yet, don’t worry. Lenders may still consider your request if you can demonstrate stable employment and regular income through pay slips and bank records.
•    You’re Self-employed Without Formal Tax Returns: If you run a small business, work as a freelancer, or earn income in cash, you might not have filed ITRs regularly. However, if you can provide proof of income through bank statements, sales invoices or GST filings, few lenders may still assess your application.

To Conclude

Not having an ITR doesn’t mean you can’t access credit. With the right documents, a strong credit score, or a reliable co-applicant, you can still secure a Personal Loan without income tax return documents. Remember, the key is to present your case well and prove your repayment capacity through other means. When in doubt, reach out to your lender!
If you’re looking for a quick and hassle-free loan, Poonawalla Fincorp offers a Personal Loan of up to ₹50 lakh with flexible repayment of up to 84 months and at an attractive interest rate starting at 9.99%* p.a.

Frequently Asked Questions

1.    Can I get a Personal Loan without filing an ITR?
Yes, it is possible to get a Personal Loan without an ITR, especially if you can provide alternate income proof such as salary slips, bank statements, or GST filings.

2.    Why do lenders usually ask for ITR when approving a loan?
Lenders use ITR to verify your income, assess your repayment capacity, and ensure financial discipline and regulatory compliance.

3.    Can self-employed individuals apply for a loan without ITR?
Yes, self-employed individuals can apply using alternative documents like bank statements, GST filings, or sales invoices to prove income.

4.    I just started my job. Can I still get a Personal Loan?
Yes, if you’re a first-time employee, you can apply using your offer letter, salary slips, and bank statements showing salary credits.