Business Loan Without An ITR

How to Get Business Loan Without an ITR

03 Sept 2020

Startup businesses and first-time business owners may not possess sufficient business experience to file Income Tax Return (ITR). However, to get a loan for business at a lower rate of interest, you need to present an ITR to meet the working capital requirements of your business. Several private and public sector banks in the financial market offer business loans at competitive interest rates with flexible repayment options. These banking facilities readily offer loans to small businesses without the need to file an ITR.

What is an ITR?

Income Tax Return (ITR) is a form in which the taxpayers file information about his income earned and tax applicable to the income tax department. In case the return shows that excess fee has been paid during a year, then the individual will be eligible to receive an income tax refund from the Income Tax Department.

Why get business loans without ITR?

  • New businesses may be inexperienced at filing ITR.
  • Might not have the necessary documents
  • The business owner must be starting a business after a period of unemployment. However, it is unfair to assume the company will not generate enough income to repay the loan amount.

Who can apply for a business loan without ITR?

  • Companies
  • Individuals
  • LLP
  • Trust
  • Co-operative societies
  • Partnership
  • Sole proprietorships
  • NGO

Business Loan Eligibility Criteria

  • Individuals, Companies, Retailers, Manufacturers, Limited Liability Partnerships (LLPs), Partnerships, Sole Proprietorships, Co-Operative Societies, etc. are all eligible to avail a loan for business
  • Start-up enterprises, first-time business owners, are also eligible for the loan
  • Minimum age criteria for a business loan is 18 years
  • The maximum age criteria is 65 years at the time of loan maturity
  • The borrower can apply for a loan amount of Rs. 10,000 and the maximum amount is up to Rs. 10 crores, depending on the business requirements and applicant’s profile
  • To be eligible for the loan the applicant must have a credit score above 700, or anywhere close to 900
  • Co-applicant: Optional, as per the applicant
  • Turnover: Defined by the lender, varies from bank to bank
  • Collateral: Not required, excluding equipment finance, bill discounting, letter of credit, etc.

Documents Required To Apply for a Business loan without ITR

  • Duly filled application form
  • Passport-size photographs
  • good business plan
  • Identity Proof such as Voter’s ID card, passport, driving license
  • Business existence proof as well as address proof
  • PAN Card of the company, individual or partnership(s), whichever is applicable
  • Proof of residence such as Driving License, voter’s ID card, passport, electricity bill, bank statement, rent agreement, etc.
  • Company’s Incorporation Certificate
  • Partnership Deed or MoA (Memorandum of Association)
  • Shops and Establishment Certificates and Rent Agreement
  • Current Account bank statement

CIBIL Score For Business Loan

CIBIL Score plays a significant role when applying for a loan for business at a low rate of interest, even if you do not have ITR to submit. An individual's credit score depicts the creditworthiness and repayment capacity. A CIBIL score is also known as credit score, is a summarised report of an individual's payments of loans taken from banks and other financial institutions. The CIBIL score range for business loans is 300-900. The minimum CIBIL Score for loans is generally 750; the best CIBIL Score for business loans is 900. The CIBIL score information is very crucial, and a good CIBIL score signifies timely payment of all the business loans. A credit score does not change overnight, as it takes a few months to reflect the changes that are generated by credit bureaus from your financial documents provided by your bank to credit bureaus.

Every financial institution has its terms and conditions in regards to a loan for business. Therefore, you need to check and compare the rate of interest, loan repayment tenure, foreclosure charges and loan amount before finalizing on loan. Get a loan at Finserv MARKETS so you can get the financing for your business at an attractive rate of interest. The loan funds can fulfil various business needs, such as an expansion of your business, getting new machinery or equipment, etc. Finserv MARKETS business loans are collateral-free, which means you do not have to put your personal or business assets on the line to get the finance for your business.

Apply for an online business loan and get access to pre-approved offers for an instant loan without security from Finserv MARKETS. The loan application process for Bajaj Finserv Business Loan at Finserv MARKETS is easy with personalized pre-approved offers, instant approvals, and quick disbursal of the loan amount. Get the Finserv MARKETS App and avail access to fast financing for your business. Before availing a business loan, you can check your CIBIL Score and get a detailed Financial Health Check Report (FHCR) for free.

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