Loan Against Property Without Income Proof or ITR

A Loan Against Property (LAP) helps you get the funds you need to address big-ticket expenses, be it home improvement, overseas education, medical treatment or more. Some lenders even offer a loan against property without income proof, and these instruments are often easier to avail of.

• Discuss your plan with your existing lender: If you have an existing relationship with a lender, contact your relationship manager. Usually, they have access to your financial profile and can help you understand if you can get a loan against property without any income proof or ITR.

• Get a co-applicant on board: One of the best ways to get a loan against property without ITR is to apply for a joint loan. You can do this with your spouse, parent or sibling but only if they have a good credit score and stable income.  This way, you can submit their ITR and income proof to assure lenders of timely repayment.  

• Clarify your sources of income: Most lenders approve a LAP application only after the property is checked by an evaluator or certified valuer. This helps them understand the property value and accordingly offer you financing.  During the valuer’s visit, you can explain your sources of income, be it through a business in the informal sector or other means such as rental income. The officer can then take into account your repayment capability based on your conversation. This can help you get approval for a loan against property without income proof.  

• Monitor and top up your savings account balance: Keep in mind that when you apply for a mortgage loan against property without income proof, lenders will review your banking habits closely. So, ensure there are sufficient funds in your account.  With healthy banking habits, you can boost the likelihood of your loan application being seen in a positive light even without income proof.  

• Account for the lack of income documents: You can submit a written application to the lender and explain as to why you do not have your income tax return or income proof. If you provide a valid reason, the lender will consider your application, enabling you to get a loan against property without ITR. Do be proactive about talking to a tax consultant and filing your returns for the current financial year if you are eligible to do so. This way, you showcase reliability and increase your chances of approval.  

• Consider accepting a decreased LTV: Usually, lenders offer 65% to 90% of the property value as a loan. Since you are applying for a loan against property without any income proof, you can reduce your ask and choose a lower principal. This will help boost your eligibility as the lender’s risk is reduced.