How to Get Loan Against Property without Income Proof?

January 10, 2022

Loan Against Property without income proof

Are you thinking of selling your property to meet your financial obligations? Do you really want to do this, or the situation has made you do so?

Pledge it rather than selling it out now and regretting later. 

Lenders offer a loan against property to cope with such uncertain situations. Put forward your loan application to the chosen banks together with the required documents. Possibilities are that you might not have all the documents beforehand ready. 

In major cases, we have seen that borrowers look for a loan against property without income proof as not all of them are employed or deal in hard cash. If you are amongst them, keep in mind that you can count on tips to get a LAP without income proof too. Keep scrolling to know how you can make it possible.

Before scooping out the methods to obtain LAP without ITR or income proof, let us know what is a loan against property?

What Do You Mean by Loan Against Property?

A loan against property or LAP is a loan that you take on your property. You can take a loan against property on any type of property, including residential and commercial property. Additionally, lenders also provide LAP on a plot too. To avail this type of loan, you need to make sure that the property is registered in your name. 

If you own the property, get in touch with the lender and apply for a loan against the property. After receiving your loan application, the lender will assess the market value of your property. This evaluation will help in determining the property value and compute the exact loan amount that can be sanctioned for that specific property. 

You can secure a loan against property for multiple purposes

  • For funding medical emergencies
  • To finance wedding expenses
  • For vacation purpose
  • For business expansion
  • To study abroad

Getting a loan against property is easy, you just have to meet the eligibility criteria of the chosen lender. Additionally, you will have to provide certain documents to avail of a property loan. 

Documents Required to Get a Loan Against Property Without Income Proof and ITR 

Here’s a list of documents that you need to prepare in advance to get a loan against property with ease:

  • Identity proof (Aadhaar Card, Voter Card, Passport)
  • Residence proof (Passport, Applicant’s Driving License or Ration Card)
  • Income proof (Salary Slip and Bank statement)
  • Duly filled Form 16
  • ITR
  • Property Documents (Registration Certificate, Property Deed, and Lease Agreement) 

Having income proof is quite important to avail a LAP. 

However, will you be able to obtain a loan against property without income proof?

In all certainty, you can! 

All you have to do is follow up with some tips which will help in availing a loan without ITR and income proof.  

Tips and Tricks to Obtain a Loan Against Property Without Income Proof

Maximum leading banks and financial institutions consider income proof as a vital loan document LAP approval. Lenders can ask for income proof and ITR even if you submit your property documents to avail of a property loan. As a result, obtaining a LAP without income proof becomes quite difficult. 

However, you can stick around certain tips and tricks that support a loan against property without ITR and income proof. You can follow up the mentioned tricks to make a loan without income proof possible:

Submit Your Loan Application with a Co-Applicant

If you have a co-borrower, then you can unlock certain other benefits. When you apply for a loan against property together with a co-applicant, your borrowing capacity increases. Additionally, lenders become more confident about your loan repayment capability. With the presence of a co-applicant, there are high chances that your application for a loan against property without income proof will be approved. 

Reach out to Your Relationship Manager

When you open a bank account, banking authorities will assign a relationship manager to you. That person will be responsible to handle all your queries, processing, and transactions. Know about your relationship manager, get in touch with the manager. Talk about your loan requirement, terms, eligibility, documents, tenure, and other things associated with the loan approval. You will get authentic guidance about the same.

Additionally, such brief discussions will help you to know whether the chosen bank offers LAP without income proof or not. You can even invest your time in taking them in confidence and unlocking possible alternatives to avail a loan against property without ITR and income proof. 

Justify Your Reason for Not Having an Income Proof

While having words with your relationship manager, be genuine. Hiding the reality might result in loan application rejection. Let the lender know the genuine reason for not having income proof. Lenders will help you if you will be truthful to them. You can explain your income sources, exact monthly and annual income, and the reason behind not filing ITR to the concerned person.  

Based upon the said information, the officer will project your application in an appropriate manner. This will ensure that your application gets approval without ITR and income proof. Your repayment capability will be determined with the provided information and other required documents. 

Look into Your Savings Account

While evaluating a loan application, the lender will look into your account transactions. Your banking habits play a crucial role in loan approval. If you have reliable financial habits and always have funds in your account, then your chances of loan approval will be increased. Additionally, you have to make sure that you have sufficient money in your account for at least one year prior to applying for a loan. Maintaining a sufficient balance will add to your creditworthiness. As a result, you can avail a loan against property without ITR and income proof. 

However, you can compute expected EMI through a loan EMI calculator. Try to maintain twice the instalment amount in your account for the long run for easy approval. 

Apply for the Required Amount

Apply for a loan amount that you actually require. Taking a higher loan amount might increase rejection chances. At the same time, don’t forget that you will have to repay the borrowed amount, so don’t overburden yourself. 

Lending banks will count on the Loan to Value(LTV) ratio to determine your loan borrowing capability. If you applied for a higher amount than the one you can repay, your application will be rejected. Thus, apply for a low-value loan to increase approval chances. When you apply for a lower loan amount, the lender can approve a loan against a property without income documents. 

Count on Peer-to-Peer Lending

With changing trends, peer-to-peer has become quite popular. In these platforms, a crowdfunding mechanism is used to generate funds. Then the accumulated amount is dispersed within the most eligible borrowers. The rate of interest will vary from one borrower to another based upon lenders’ criteria. If you don’t have an authentic income proof or ITR then you can set your hope in P2P platforms. 

Conclusion

By referring to the aforementioned facts, it is quite clear that not all lenders offer a loan against property without ITR and income proof. Getting a LAP without income proof can be an uphill task but these tricks will make it a smooth slider for you. Rather than exploring more and more lenders, count on convincing your existing lender to offer a loan against property without income proof. Get familiar with the eligibility criteria to make your negotiation move a better one. 

FAQs

Can I get a loan without income proof?

Yes, you can get a loan without income proof. But you have to make sure that you have the rest of the documents such as ID and address proof, bank statements, and property deeds. Additionally, you will have to tell the actual reason for not having income proof.

Which type of loan does not need income proof?

An unsecured loan does not need income proof. You can negotiate with the lender to approve your loan application without income proof in such cases.

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