Personal Loan Without ITR: All You Need To Know

Personal loans have always been a supporting financial resource for securing immediate money during emergencies or big-ticket purchases. These loans are known to be lifelines when you are struggling to arrange funds for a wedding, medical bills, education expenses, home renovations, and more.

However, personal loan can easily be obtained only with the required paperwork. But what if you are missing out on certain documents and still need the approval for a loan instantly?

Read this blog to learn how to secure a Personal Loan without ITR and income proof and make your dreams come true with the funds you secure from the lending institution.

How is documentation important for securing a personal loan?

Documentation is essential when obtaining a personal loan or any financial service from a lending institution. Here’s how it plays an important role:

1. Earns the trust of the lending institution

With the right documentation, the lending institution can easily trust you and sanction your loan on time. This helps you to gain better interest rates, and the negotiation process becomes easier, boosting your confidence.

2. Speeds up the loan approval

Accurate paperwork is required for loan sanction, which speeds up the lending institution's loan approval process. Presenting the right paperwork on time allows you to take out a significant loan amount for various purposes easily.

3. Better interest rates

Interest rates depend on factors like credit score, income, etc., but the right documents help you negotiate with the lending institution for lower rates. Having everything in place, in turn, enables you to get attractive interest rates without much hassle.

Also Read: How Do Paperless Personal Loans Work?

Tips to get a personal loan without ITR & income proof

Understanding how to get a personal loan without ITR is very helpful when you need instant funds for various purposes. Here, we will talk about two major areas that can help you secure a loan when you don’t have an ITR or any proof of income.

1. Credit score

Your credit score is an essential factor when you want to apply for a loan without ITR and income proof. How does your score help? Well, having a good credit score of 700 and above ensures you get a loan from the lending institution on time. The lending institution can sanction your loan if you do not present proof of ITR and income but have a good credit score.

2. Repayment history

 When you pass all the personal loan eligibility criteria and apply for the loan without ITR and proof of income, your repayment history for a Personal Loan is another essential for the lending institution. The lending institution assesses your previous loan commitments and how timely you repay your loans without creating much hassle for the past lending institutions.  

3. Opt for a secured loan

Consider applying for a secured loan, where you provide collateral such as gold, property, or fixed deposits. Banks are more likely to approve loans when they have security against the loan amount, reducing their risk and compensating for the lack of proof of income.

Also Read: How To Check & Download Personal Loan Statement?

4. Pay your dues timely

Pay all existing dues on time to maintain a good credit history. A strong credit score demonstrates financial discipline and reliability, making lending institutions more willing to approve your loan application even without proof of regular income. 

5. Provide other important documents

Submit alternative documents such as bank statements, utility bills, rental agreements, or business records. These documents can help demonstrate your financial stability and ability to repay the loan, convincing lending institutions of your creditworthiness. 

6. Use a guarantor or co-applicant

Having a strong credit profile can significantly increase your chances of loan approval. The guarantor or co-applicant provides additional security to the lending institution, reducing its risk and enhancing your application's credibility.

Personal loan eligibility criteria

Here are the personal loan eligibility criteria when you want to get a loan from Kotak811:

Personal loan required documents

Here is a checklist of the personal loan required documents, even if you do not have an ITR and income proof:

Conclusion

Securing a Personal Loan without ITR and income proof can seem tricky and challenging, but with the right knowledge, you can overcome this challenge and get your loan approved.

With 811 Mobile Banking App you can apply for a personal loan instantly.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.