A constant flow of funds is crucial to either launch a new business or maintain the operations of an existing one. A business loan can be a suitable option to get access to the funds required for your organisation. However, in most cases, you will need to submit income tax returns for the past 2 years while applying for financial assistance from lenders.
If you are an entrepreneur with a new start-up who doesn’t have adequate experience to file an ITR, you can opt for a personal loan for self-employed without ITR.
Do you want to avail a loan without ITR for your start-up? Go through the following sections to know more.
The Income tax returns are essential for availing of a business loan as these act as proof that you have a source of income to repay what you are borrowing. The lending institutions will use your ITR to determine whether you are eligible for a loan.
Income tax returns usually serve these purposes when availing of a personal loan for business:
You can avail of a business loan to receive funds for a diverse range of business purposes. These include buying raw materials, installing new machinery, enhancing inventory, increasing manpower, and more.
As mentioned above, ITR is one of the most necessary documents that you need to submit when availing of a business loan. Your lender will check the ITR, among many other documents, before approving a personal loan for business. However, enterprises in their early days might not be able to file their income tax return due to various reasons.
It might happen that you do not have the necessary documents or experience to file ITR. Also, your business might not be able to generate enough revenue to cover loan repayment. Whatever be the reason, you can apply for a personal loan for self-employed without ITR instantly to meet business-related expenses.
A personal loan allows business owners to get access to a substantial amount of funds required for business operations without ITR instantly. Navi, for instance, offers a personal loan of up to Rs. 20 lakh at highly competitive interest rates. This loan comes with a completely paperless and hassle-free application process and minimal documentation.
Download the Navi app and avail a personal loan for business to meet the various expenses of your organisation.
Also Read: How To File ITR-2?
The following are eligible to apply for a business loan without ITR:
If you do not possess an ITR but need to apply for a business loan, you need to be aware of the following eligibility criteria:
However, the eligibility requirements for these loans will differ across lenders.
Here are some of the essential documents that you should provide while obtaining a personal loan for self-employed without ITR:
You should remember that the documents necessary to apply for this loan will usually vary across lenders.
To avail of a business loan without ITR, you should compulsorily have a high credit score. Applicants with a credit score above 750 are considered low-risk borrowers. Accordingly, if your CIBIL score is above 750, there’s a high chance of loan approval.
So, if you are planning on taking this loan for your business, make sure to improve your credit score.
More and more financial institutions today are offering personal loans for self-employed people without ITR. This is particularly helping the small and medium businesses along with start-ups to maintain their operations and grow. You can refer to this complete guide if you don’t have ITR and want to fund your start-up through a business loan.
Ans: No, it is not possible to avail of a personal loan for self-employed people without income proof. You need to provide necessary income proof documents as required by your financial institution for easy loan approval.
Ans: It is essential to have a high credit score of at least 750 to avail of a personal loan for self-employed individuals without ITR. A low score might impact the chances of loan approval. So, make sure to improve your credit score before applying for such loans.
Ans: The minimum income requirement of a self-employed applicant without ITR looking to avail of a personal loan for business will usually vary from one lender to another. You should check the eligibility requirements of your preferred lender before initiating the application procedure.
Ans: The interest rate for these loans usually differs across lenders. However, the following are some of the factors that can potentially impact the interest rate on your personal loan:
Past loan repayment behaviour
Ans: You can find numerous lenders in the market today offering personal loans for self-employed individuals. To find a suitable lender, you should compare and check the interest rates, repayment tenure, associated charges and other features.
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