In this article, we will discuss how to get a home loan without filing ITR. But, first, you should know the importance of ITR for getting a home loan approval.
Importance Of ITR For Getting A Home Loan
- To know your specific level of income, lenders rely on your ITR. Most of them require your last 3 years of an income tax return to validate or process your loan application. Hence, not being able to provide an ITR may lead to no loan approval.
- ITR is a document which helps to assure the lenders that you are worthy of availing of a loan and will be able to return it on time, meaning it defines your creditworthiness.
- Lenders require your audited financial documents before processing your application whether you are self-employed or salaried. And ITR is a document which completes your audited set of financial documents.
How To Get A Home Loan Without Filing ITR?
Let’s take an example:
I have a small business, my annual income level is below the taxable limit. So, I do not file income tax returns or ITR and don’t maintain the ledgers. Never take any kind of loan from a bank or NBFC and don’t have a credit history. So, Can I Get A Home Loan?
Here’s the answer: Yes, an individual can get a home loan from a bank or any housing finance company despite not having an ITR filed when the income is below the taxable limit.
Nowadays, major banks and housing finance companies including “Axis Bank, HDFC, ICICI Bank, Aditya Birla Housing Finance, Hero Housing Finance, and Piramal Housing Finance”, offer loans to self-employed or salaried employees whose income is below the taxable limit or is in cash mostly. These financial institutions organise these special financing programs based on affordability, meaning affordable housing finances. If you want a housing loan then you will have to reach these banks or HFCs or their agents with required documents like “Aadhar card, residence proof, business proof, photographs”, and submit it.
To allow your loan applications to process further, these banks have a distinct process of analysing your creditworthiness by coming to your house or workplace and taking a look at your income records or let’s say “Kachcha Khata ” including expenses. Moreover, in case you do not even maintain a temporary record of your income and expenses, they will look into your stocks, sales, and even your experience to run such an extent the business.
Also read:
Hiding Online Status And Reaction Preview In Coming WhatsApp Update
Loan Based On Your Cash Income
Based on an assessment report submitted by the visiting bank personnel at your place, the bank will grant you the loan based on cash income. But you will have to provide a copy of your property documents, then after valuation, you will get the date on which you will get your loan cheque from the bank. “The bank’s lawyer will go to the property registrar’s office and hand over the home loan cheque to your seller, they will register the property in your name and collect the sale deed and other papers and keep it under their custody till the time your pay back the home loan,” mentioned by livemint.
