Get Loan Against Property without Tax Return Statements?

Everyone faces a monetary crisis at some point in their life. There is always a long list of duties and responsibilities to fulfil that demand money. One cannot fulfil these responsibilities by swiping their credit card. Taking a loan against your property may, however, prove to be helpful. The demand for loans against property has increased with time, primarily because these loans are more affordable than any other personal loan. Getting a loan sanctioned without showing ITR is difficult but not impossible.

Tips To Get A Loan Against Property Without ITR

The following tips will improve your chances of availing a loan against property without an Income Tax Return.

1. Connect with your relationship consultant: All savings account bank holders are allocated a relationship consultant. They can guide you through the entire process of availing of a loan against a property. An honest conversation with them regarding the absence of income proofs is necessary to assure your lender that you will be able to repay the loan in time.
2. Monitor your bank activities- Lending institutions scrutinize bank statements before sanctioning any loan. Try to keep a high average monthly balance with regular savings. This will increase your chances of getting a LAP loan approved.
3. Justify reasons to not have income proof- Give a proper explanation with a valid reason to the concerned body regarding why you did not file your income tax return in the current or preceding year. If the lender is satisfied with your explanation, they will decide on the previous year’s income.
4. Select a Lower Loan-To-Value Rate (LTV)- The percentage of your property’s market value that the lender offers as a loan is a loan-to-value ratio. If the lender provides a high LTV of 80%, the borrower must meet only 20% of the expenses. Choose a lower loan-to-value percentage and make higher down payments to increase your chances of getting your loan approved without income evidence.
5. Apply with a co-applicant- You can avail of a loan against property with an earning member of your family as the co-applicant.