At one point or another in our lives, almost all of us have had a financial crisis in our lives. But, if you hesitate to take a Personal Loan, you can always pledge a property that is in your name. This is where a Loan Against Property comes into the picture. A Loan Against Property (LAP) is a guaranteed, fair-value mortgage advance on a residential or commercial property. To avail a Loan Against Property, you will need to provide income proof. But, if you are unable to do so at the moment, do not worry as there are ways you can still avail one.
Most of the banks will ask you for an income proof for a loan against property even if you submit the property documents as collateral. However, if you cannot furnish one at the moment for some reason, you can try getting a loan against property using one of the following methods. But, before you do so, check your loan against property eligibility using the LAP eligibility calculator available on Finserv MARKETS.
Proof of Identity
Cheque for processing fees
Talk to your relationship manager: If you have a savings account with a bank, chances are that you have a relationship manager too. In case you do not know who that is, go to the bank, find out who your relationship manager is and assure them that timely payments will be made towards your LAP. Then, ask them if they can process it even though you cannot furnish an income proof or an Income Tax Returns (ITR).
Get a co-applicant on board: Alternatively, you can bring someone close to you on board as a co-applicant for your loan against property. Note that this person must be a family member who has a long credit history and a stable income source.
Explain your income sources: Before your LAP application gets approved or rejected, the bank will send an inspector over to the property location to inspect it. During this time, you can explain your income sources if you are a small business owner or make your money through other avenues. All of this information will be taken into consideration by the officer to determine your loan repayment capability.
Explain the lack of your income documents: You can also try and explain to the relevant officials why you do not have popper income proofs or have not filed your ITR for the last year. After that, consider getting a tax consultant right away to file your returns for the current financial year.
Review your savings account bank balance: If you do not have valid income proofs, your banking habits will be reviewed. During this process, they will check if you have sufficient funds in your account at all times. If your banking habits are deemed healthy by the official representing the lender, the chances of your LAP application getting approved will go up.
Consider availing a smaller loan amount as a LAP: Alternatively, you can ask for a lower principal amount as your Loan Against Property if you cannot furnish valid income proofs. This will increase your chances of availing the funds and reduce your overall Equated Monthly Instalment (EMI) outflows.
Loan Against Property (LAP) is a form of loan taken against a property that you own. A residential building, commercial building, or just a plot can be a property. If you have a property registered under your name, you can contact lenders to request a loan for your property. The lender will assess your asset's market value and will sanction the loan. A certain percentage of the market value of the property will be approved by the lender as a loan which you can use for any purpose. People take Loans Against Property for various reasons such as expanding their company, education of their child, taking a vacation, or for medical treatment.
Yes, it is possible for you to avail a Loan Against Property (LAP) without an ITR. But, you will need to convince the lenders of the fact that EMI payments towards it will be made regularly.
You can get a home loan without your Income Tax Returns (ITR) or an income slip if you try getting one through the following methods:
Get a co-applicant on board.
File your income tax returns for the current year immediately.
Try talking to your relationship manager.
Keep a track on your savings accounts.
Explain why you do not have a valid income proof but are still creditworthy.