Want to Avail of Business Loans Without ITR? Here’s The Answer!

Business Loans Without ITR

Entrepreneurs seeking additional funding for their ventures may find business loans to be a lifeline. These loans can cover various expenses, such as machinery, inventory, or daily operating costs. On the other hand, obtaining a business loan necessitates a large amount of documentation, including ITR forms from the previous two to three years. They are required to process your business loan because they provide lenders with proof of your annual turnover and margins. Obtaining a loan against property in Delhi follows the same steps. This blog helps you with business loans without ITR.

Business Loan Eligibility Criteria

The following are the primary eligibility criteria for a business loan:

  • Individuals, cooperative societies, companies, sole proprietorships, NGOs, trusts, traders, retailers, manufacturers, and so on are all eligible for business loans.
  • A borrower’s age cannot be less than 22 years old when applying for a business loan, and it cannot be more than 65 years old when the loan matures.
  • A loan of up to Rs. 10 crores is permitted, depending on the applicant’s profile and business requirements.

Why Are Income Tax Returns Necessary?

The Income Tax Return serves as proof of your earnings. NBFCs and banks use this information to determine whether you are eligible for a loan and whether you can repay your debts.

ITR serves two purposes:

1. It establishes a benchmark for how much money banks are willing to lend you.

2. It enables you to obtain low-interest business loans.

Thus, filing your income tax returns regularly is beneficial.

How to Apply for a Business Loan Without an ITR

Here are some pointers for applying without an ITR business loan:

  1. Keep a Good Credit Score

Any loan application requires a good CIBIL score. If you have a high credit score, you can demonstrate your creditworthiness to the lender even if you do not have the necessary ITR. As a result, when applying for a business loan, ensure that your CIBIL score is at least 750.

  1. Select a Government Program

To assist first-time business owners, the government has implemented a variety of business loan apply schemes. As a result, you don’t need collateral or an ITR to qualify for these business loans.

 • Mudra loan

• PSB Loans

• Stand-up India

• NSIC (National Small Industries Corporation) Subsidy

 • PMEGP (Prime Minister’s Employment Generation Scheme)

  1. Use a Co-Applicant

If your mother, father, partner, or other close family member has a steady income, you can include them as co-applicant for the loan. If you do this, the lender will likely approve your loan application.

  1. Apply With Collateral

When applying for a business loan, you can pledge your loan against property in Delhi or land as collateral. This option streamlines the loan application process and increases your chances of approval.

  1. Borrow From a Private Lender

Some unofficial lenders will provide a business loan without an ITR. However, their policies and terms may differ significantly from traditional lenders/business loan providers.

  1.  Apply For A Personal Loan

Small business owners who do not have an ITR can apply for self-employed personal loans instead of business loans. Personal loans typically have fewer eligibility requirements and are easier to obtain than business loans.

Conclusion Financial institutions are increasingly offering business loans to self-employed people who do not have an ITR. This is especially beneficial to small and medium-sized businesses and start-ups in terms of operations maintenance and growth. If you don’t have an ITR and want to fund your startup, apply for a business loan.

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