Best way to Apply for a Loan Against Property without ITR

loan against property

Record of Income Tax Returns or ITR is one of the essential documents that lending institutions check while sanctioning a loan against property. This acts as proof of an individual’s annual income. However, individuals may not fall under income tax liabilities, and consequently, they lack these ITR records. They can also avail of this credit advance by demonstrating to their lenders that they can repay their loan amount without defaulting. So, individuals must know the strategies to get LAP without ITR records.

Tips to get a loan against property without ITR records

Following are some ways that can help individuals get this mortgaged loan without income proof:

  • Acknowledging all income sources to lenders

If the individuals lack their income proof or ITR records, they must clarify lenders about all their income sources. It will help lenders understand that those loan applicants will be able to pay off their dues conveniently. 

Individuals also need to inform the lending companies about the exact reasons for not having ITR records. Then, after being convinced, lenders can consider sanctioning the loan amount. 

  • Maintaining a substantial balance on savings account

While applying for a LAP without income proof, lenders check the individuals’ transaction history of savings accounts. The chances of getting the loan amount increase if the borrowers maintain a substantial balance every month. The lending institutions deem those individuals as creditworthy. 

  • Asking lower loan amount with respect to LTV

The loan to value ratio refers to the highest percentage of a mortgaged property’s market price that lenders can offer as a loan. Individuals should ask for a lower LTV as their requested loan amount against their collateral. It reduces the overall risk of the lenders. If the borrower fails to pay off the dues, they can get their offered loan amount back by liquidating the property. So, considering this factor, lending institutions can agree to give lenders the credit advance.

  • Availing loans with co-applicants

Individuals also can apply for a loan against property with co-borrowers having income records. In this situation, if the loan applicant fails to repay their dues, the co-applicants become liable to settle them. This way, the risk factors of the lending institutions get diluted. So, they may agree to lend a high lump sum at a lucrative property loan interest rate

For example, if students want to avail this credit advance, they can apply with their parents as co-applicants. However, they must be aware of what is loan against property and factors affecting before applying for education purpose.

  • Accepting high loan interest rate

Extending the loan amount to individuals with no ITR record is a riskier option for lenders. So, they may ask for relatively a higher interest rate to compensate for the prevailing insecurity. Therefore, individuals must be prepared to take the mortgaged loan at their proposed interest rate. 

Interest rate significantly influences the EMI amount. After getting a high-interest rate, individuals must check their instalment amounts using a loan against a property calculator

To access this property loan EMI calculator, individuals need to visit the official website of their preferred lenders. Apart from the EMI amount, individuals can also check their amortised table, loan schedule and overall cost of borrowings using this tool.

This way, individuals can get a LAP without ITR papers by following these strategies. Individuals must also know which documents they need to keep handy while applying for LAP.

Furthermore, borrowers can avail of the pre-approved offers that lending companies extend to their customers on products like LAPs and home loans. They can significantly quicken the application time by leveraging this benefit. They only need to enter their names and contact information to check their pre-approved offers.

In conclusion, to get a loan against property without proof of income, individuals must convince their lender that they can repay the credit advance. Thus, even without ITR records, individuals will be able to get a substantial loan amount to meet financial needs.

By sarah johan

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