How to Get a Personal Loan without an ITR: A Step-by-Step Guide

Securing an instant personal loan can be a straightforward process if you have the right documentation. However, for self-employed persons without an ITR, obtaining a personal loan may seem more challenging. The ITR or income tax return is often a key document that lenders use to assess your repayment capacity. It provides a snapshot of your income over the previous financial year, giving lenders confidence in your ability to repay the loan.

In simpler words, lenders typically require an ITR to evaluate your financial stability. For salaried employees, an ITR serves as proof of income, showcasing your annual earnings and tax compliance. This also helps lenders determine your eligibility and the amount of loan you can manage.

“Can I get a personal loan without a salary slip?” Self-employed individuals often wonder about this. The good news is, yes, you can get a personal loan without an ITR or a salary slip by following a strategic approach.

Overcoming the Challenge: Personal Loans for Self-Employed Without ITR

Those seeking a personal loan without ITR or proof of income need to be proactive in their efforts. Before applying, it's crucial to ensure that you meet the lender's eligibility criteria. These criteria may vary from lender to lender but it generally remains similar for most NBFCs and banks. Choose a reputable lender such as Muthoot Finance, who can provide you with an instant personal loan with minimal documentation and easy eligibility criteria.

Additionally, calculating your monthly instalments using a personal loan EMI calculator can help you plan your repayments and convince the lender of your ability to manage the loan. For example, the personal loan EMI calculator by Muthoot Finance is easy to use and can help you gain a fair idea of your repayment liability. All you need to do is enter a loan amount and loan tenure to calculate the monthly loan EMI.

Eligibility Criteria for Personal Loans Without ITR

Here are the key factors lenders consider when you apply for a personal loan without ITR:

Credit History

The credit score is one of the most important aspects for self-employed people seeking personal loans without proof of income. A high CIBIL score indicates that you have a history of timely repayments, which makes you a less risky borrower. If your credit score is high, it can compensate for the absence of an ITR.

Income Stability

Even without an ITR, showing that you have a stable income can increase your chances of approval. This can be done through bank statements, which provide a record of your income over time.

Suggested Read: No Income Proof? Here's How to Still Get a Personal Loan Online

Housing Situation

Lenders often consider your living arrangements when assessing your application. Owning a home can work in your favour, as it indicates financial stability.

Geographic Location

Some lenders may have different criteria based on your location. Living in a metropolitan area may make it easier to secure a loan due to the availability of better financial infrastructure.

Tips for Getting a Personal Loan Approved Without ITR

Here are some practical steps you can take to improve your chances of getting a personal loan approved without ITR:

Provide Bank Statements

Even if you don’t have an ITR, submitting several months of bank statements can help demonstrate your income and cash flow. Lenders may accept these as proof of your ability to repay the loan.

Highlight Income from Other Sources

If you have multiple income streams, such as rental income, freelance work, or investments, make sure to highlight these. Documenting these additional sources of income can strengthen your application.

Maintain a High CIBIL Score

Your credit score can be your biggest asset when applying for a loan without an ITR. Pay off existing debts and ensure that you maintain a high CIBIL score to make your application more attractive to lenders.

Suggested Read: Importance & Advantages Of Having High Cibil Score

Use a Guarantor or Co-Applicant

If possible, include a guarantor or co-applicant with a b credit profile. This can provide additional assurance to the lender that the loan will be repaid, improving your chances of approval.

Find a Reliable Lender

Not all lenders have the same requirements, and some may be more flexible than others when it comes to approving loans without an ITR. Muthoot Finance is one such lender that offers an instant personal loan tailored to meet the needs of self-employed individuals and those without traditional income proof.

For self-employed individuals without proof of income, securing a personal loan may require extra effort, but it is certainly achievable. Muthoot Finance is a leading NBFC that provides instant personal loans to all customers. If you're looking to secure an instant personal loan in a hassle-free manner, visit your nearest Muthoot Finance branch or log on to our website today to explore your options.