Getting a loan requires a certain set of documents in the application. Income Tax Returns are one of the most important documents in your application. Usually, banks ask for 2-3 years ITR in your application for loan. It has been usually seen that borrowers try to file the Income Tax Returns for that year in which their application is made. Usually, banks don’t give a loan if you are unable to show 3 years consecutive ITR. Let us look at some way in which you can get a loan against ITR of one year –
- Addition of an additional Co-Applicant – You should add an additional Co-Applicant with your application. By adding an additional credit worthy Co-Applicant with your application you are increasing your chances of getting your loan sanctioned.
- Self funding – Usually, Banks don’t fund the entire amount in case of certain deviations like not providing 3 years ITR. In this case you could add funds from your side. By adding funds from your side, you are increasing probability of getting your loan sanctioned.
- Peer to Peer lending – This is a new platform which is evolving at a fast rates in India. Peer to peer lending relies on social lending concept. In this a group of lenders fund a borrower by crowd funding. Peer to peer lending platforms act as platform for financing to the customers. Peer to peer lending platforms have adopted different lending practices compared to existing banking practices. Banks have rigid lending practices which results in exclusion of certain group of people. P2P lending platforms rely on new age technologies like Social media profiling, Data analytics, payment modeling etc to provide loan to borrowers.
- Clear communication – Generally a credit officer visits your premise to discuss the case with you. It is very important at that time to explain your sources of income with document evidence to ascertain your repayment capacity. You should clearly mention the reason for not maintaining the previous year ITRs.
- Seek certain HFCs – You should seek certain HFCs that provide Loan against Property with one year ITR. There are HFCs like Shubham and Religare which are lenient on providing loans even with one year ITR.
- Maintain gap in ITR filing – It is seen that borrowers files ITR of two years on the same day to showcase 2 year ITR but, you should not do this if you want your laon to get sanctioned. You should maintain a gap of at least 6 months in filing two year’s ITR.
- Maintain good CIBIL record – You should try to maintain a good repayment record of your existing loan. Even if you don’t have an existing loan then you can maintain a good CIBIL record with timely credit card payment.
It is very difficult to get a loan against ITR of one year. But as can be seen from the above article is that one can adopt different mechanism to get his loan sanctioned with one year ITR also.