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Loan Against Property Without Income Proof


Loan Against Property Without Income Proof


When it comes to the home loan process, an eligibility check is the first thing utterly important. Banks and NBFC's evaluate the risk associated with sanctioning a home loan along with the other crucial documents submitted by the applicant. Therefore, the income and tax return of the applicant becomes a considerable document through which banks ensure that the loan is processed. Unfortunately, applicants sometimes found themselves unable to arrange various evidence including income or income tax returns.  

Therefore, this blog will guide you through the path of understanding the loan against property and applying for a mortgage loan or loan against property without the requirement of showing proof of income.


Simply, a loan that is against property means secured with your collateral. An individual who wishes to apply for this has to pledge his property in the name of collateral. All the property types are acceptable likewise real estate, home, commercial property, or even unstructured land. The only thing the bank will cautiously check is the property has to be in your name. When the bank starts the process, the very first thing he will look at is the cost your property currently contains. 


Officially one can expect up to 80% loan against the property else it is dependent on your bank and the relationship you carry with him. Once the loan amount is disbursed to your bank account, you are open to use it on anything including vacations, medical, and educational expenses. 


Easy Way to Obtain Loan Against Property Without Income Proof?

It is predictable that banks require income proof to approve the loan against property. But in the absence of such required evidence professionals who are on freelancing salaries not having fixed amounts monthly are unable to submit this crucial evidence. So, below are the few pointers you may pursue to obtain a property loan without income proof or ITR:


  • Alternative Documents: People with no regular or sustainable monthly salary should consider attaching documents of alternative sources of income. For instance, dividends, business profits, rental income, and so on. Such discussed evidence tells how able you are to repay the loan.

  • Regular Monitoring of Saving Account: The banks keep an eye on your expenditure and how you are handling your money after applying for a loan against property without income proof. Therefore, you should be cautious about having enough money in your bank account. Hence, if you are short on arranging income documents, your application will be handled positively due to your habit of managing account duties. 

  • Hire a Guarantor: It is important to consider a guarantor for a swift loan process. Those who are unaware of the term “guarantor,” so, he is a person who agrees to repay the loan on your behalf. Also, banks consider seeing the guarantor’s credit score and income proof that enhance the likelihood of your loan approval.

  • Discuss with Bank Representative: It will be in your favor if you hold an official discussion with the bank representative and share the genuine reason for not having this important income proof. If you are capable of telling a good reason why you don’t carry proof of your income, it is highly expected that you will obtain the loan against property efficiently. 

  • Contact a Tax Expert: Having a Tax Expert by your side will be a positive turn in your loan application process. The tax expert will guide you accordingly and ask you to pay estimated tax depending upon your unstable income. Afterward, you will be carrying proof that you are conscious about paying the loan and able to repay the loan responsibly. 


List of Required Documents:

People can apply for loan against property without income proof with the below-mentioned documents:


  • Identity Evidence: You must have having identification card includes an Aadhar card, passport, driving licence and so on issued by the government of India 

  • Address Proof: The utility bill you receive every month or any bank statement that contains your current and permanent address.

  • Credit Report: You should have or get a copy of your credit report to let the bank assess your creditworthiness. 

  • Property Documents: It is highly recommended to get the asset or property documents you wish to use as collateral. Plus, make sure the property papers are registered in your name. 

  • Identity of Guarantor: If you borrow a guarantor to obtain a loan, you have to submit the financial and personal information of this person along with identity proof so that banks get the way to trust you.


Summing Up

It is a daunting task to obtain a loan against property without income proof in India. But, this article made it easy. Basically, your income proof is the way for banks to assess your ability to repay the loan. Hence, these are the major tips that can be helpful for someone looking for a loan against property. 


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