It is possible for you to avail a business loan without submitting your Income Tax Return (ITR) document. Many public and private sector banks and NBFCs are now willing to offer a business loan without an ITR.
As a new business owner or a start-up, you may be too young, and, thus, ineligible to file Income Tax Returns (ITR). However, you can easily avail a business loan at Bajaj Markets from any of our partner lenders at affordable interest rates. Read on to know more.
Start-ups and first-time business owners are also eligible for a start-up business loan.
The business loan applicant must be at least 18 years old or at most 65 years of age (at the time of loan maturity).
The borrower can apply for a loan amount ranging from ₹10,000 to ₹50 Lakhs, depending on the business requirements and their credit profile.
To be eligible for the loan, the applicant must have a credit score of 700 or above. The higher the credit score, the better will be the loan terms.
The minimum business turnover is determined by the lender and varies for different lenders.
Collateral is not required, except for equipment finance, bill discounting, or letter of credit.
You need to furnish the following documents while applying for a business loan without ITR from a financial institution:
Duly filled application form
Passport-size photographs
Business plan
Identity proof such as a voter’s ID, passport, driving licence, etc.
Business existence proof and address proof
PAN card of the company, individual, or partner(s), whichever is applicable
Proof of residence such as driving licence, voter’s ID, 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
Lenders usually do not specify the minimum ITR requirement for a business loan. However, the higher the ITR, the better are the chances of approval. As mentioned above, many lenders today also offer business loans to start-ups even without an ITR.
While it may be difficult, many banks and NBFCs do offer business loans to new start-ups even without ITR.
Some of the drawbacks of applying for a business loan without ITR include delay in processing the loan application, less amount sanctioned, and comparatively shorter repayment tenure.
Yes, all kinds of businesses can apply for a business loan without ITR. However, approval of the loan application is entirely at the discretion of the lender.
Definitely. If you own a property, you can consider pledging it as collateral while applying for a business loan without ITR. It will make the process easier and also improve the chances of approval.
Yes, private sector banks as well as public sector banks provide a business loan without ITR. But before applying for it, you should read and understand the terms and conditions of the loan as these vary from financial institution to financial institution.
There are certain things that can help you in availing a business loan without ITR. For instance, you can offer a collateral or make anyone your co-applicant when applying for a business loan without ITR. Moreover, you can show your business plan to increase the interest of lenders in your business.
There are some probable cons of applying for a business loan without ITR which may include paying a higher interest rate. It may also be possible that the sanctioned loan amount will be low. In addition to it, the approval for a business loan without ITR generally takes more time. Keep these pointers in mind before you opt for a business loan without ITR.