With rising inflation today, the cost of living has become even costlier, and people are often left to seek loans and credit to protect themselves from financial crises. While loans and credit cards are much more accessible than ever before, not having the required documents such as income proof and ITR can hamper a borrower’s application. This is where one can always go for a Loan Against Property without income proof or ITR. If you, for some reason, are wary of taking out a personal loan and have a property in your name, then a loan against the property is a good option. You can obtain a secured loan at lower interest rates by pledging your property as collateral.
So how can you get a mortgage Loan Against Property without income proof or ITR? Let’s learn about that and more.
Introduction to Loan Against Property
A Loan Against Property is a secured loan you can obtain by pledging your property as collateral. The property might be a house, a business facility, or a plot. After you submit the property documents authorised in your name, the financial institution will check the property’s market worth and approve the loan.
This Loan Against Property can be used for various purposes, including expanding business, schooling, studying abroad, vacationing, or medical care.
Documents Needed To Apply For A Loan Against Property Without Income Proof And ITR
You can get a mortgage Loan without income if you meet the eligibility criteria and have all the documents on your eligibility and documents.
Take a look at the below Loan Against Property documents required:
|Salaried Employees||Self Employed Professionals|
|Application Form With Photograph||Application Form With Photograph|
|Age Proof||Age Proof|
|Residence Proof||Residence Proof|
|Education Qualifications||Education Qualifications|
|Pay Slips For 3 Months||Certificate & Proof of Business Existence Along With Business Profile|
|Form 16 For the Last 2 Years||Last 3 Years ITR With Profit & Loss Account & Balance Sheets|
|Last 6 Months Bank Statements(Salary Account)||Last 12 Months Bank Account Statements (Self & Business)|
|Processing Fee Cheque In Favour of ‘PNB Housing Finance Ltd.’||Processing Fee Cheque In Favour of PNB Housing Finance Ltd.’|
|Photocopy of Title Documents of Property, Approved Plan||Photocopy of Title Documents of Property, Approved Plan Etc.|
But what if you are new in your business and don’t have two important documents – your income proof and ITR? While that will affect your Loan Against Property eligibility? You can still avail of it.
6 Ways To Get A Loan Against Property Without Income Proof and ITR –
Tip 1: Speak with your relationship manager
Suppose you hold savings account with a financial institution. In that case, you will be allocated a relationship manager who will be your POC (point of contact) if you face any problems. If you don’t know how to go about it, visit the financial institution and get in touch with the person concerned.
Once you’ve found the correct individual, try to assure them that you’ll pay on time and ask if they can execute your Loan Against Property without an ITR or an income proof document.
Tip 2: Pitch in a co-applicant
Consider including a family member or spouse with a good credit history and a steady salary as a co-applicant. Including a salaried co-applicant who has both documents will improve your loan against the property’s chances of approval.
Tip 3: Clearly reveal your income to your officer.
The financial institution’s representatives will inspect the property before granting or refusing a loan. If you own a business or want to pledge a property, explain your revenue to the person in charge at this time. Also, inform the officer that you don’t have any evidence of income or an ITR application form.
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When assessing your yearly income and repayment ability, the bank officer will consider all the information you submit for a mortgage Loan Against Property without income proof.
Tip 4: Describe why you don’t have the required documents.
It is critical to file an ITR. If you haven’t submitted it the previous year, kindly explain the reason honestly to the officer. Also, to be safe, see a tax advisor as soon as possible and submit your income taxes for the current financial year.
Tip 5: Examine Your Savings Account
The lender will examine your financial history when approving a Loan. Thus it’s better to maintain a minimum account balance at all times. Ensure your bank account balance equals or exceeds your anticipated EMI.
Tip 6: Choose a Lower LTV (Loan-to-Value) Ratio
The loan-to-value ratio (LTV) refers to the loan percentage that the lender would finance. For example, if the LTV is 90%, you must pay the remaining 10% while the financial institution funds the remaining 90%. If you don’t have any evidence of income or ITR documents, ask them for a lower LTV. If you prefer a lesser LTV, you’ll have to pay for the difference out of your money.
Obtaining a LAP (Loan Against Property) without ITR or income proof takes a lot of persuasion, explanation, and patience. However, as the financial industry is growing, many institutions readily extend a mortgage Loan without income proof. Getting a better deal requires researching online and comparing which one provides the best loans against property.
Check out PNB Housing’s financial instruments with a pan-India network and competitive Loan Against Property interest rates.