Tips to Get Loan Against Property Without Income Proof

loan against property without income proof

A loan taken out against the mortgage of a piece of real estate, whether it be residential or commercial, is known as a loan against property (LAP). Before approving the loan, the market worth of the property is evaluated. If the title deeds are deemed to be clear and without any legal encumbrances, the loan is approved and is supplied as a set proportion of the property’s current market value.

Requirements for obtaining a loan against property:

The main requirements are that the property should be free of liens and have your name on the title.

End use:

The final use of a loan against property is not constrained and may be put to any lawful use. Applying for a loan secured by property might be a terrific method to receive the money you need without having to sell off your asset.

Loan amount:

The loan amount normally ranges from 40% to 60% of the assessed market value. However, this depends on the lender and the price of the property. 

Interest rate:

The interest rates on LAP loan are comparatively low when compared to other loans, such as personal loans because the loan is secured by your property.

Loan against property without income proof or ITR

Almost all of us have experienced a financial crisis at some point in our lives. There is always something we need to accomplish that costs money.  We frequently question ourselves, “Where do I get the money from?”. In such circumstances, in addition to using your credit card, you might think about getting a personal loan. Why not use your registered property as collateral instead of applying for a personal loan if you are scared to do so but have a property you wish to sell?

Tips to avail loan against property without income proof

The bad news is that even if you present your property documents as collateral, the majority of India’s top banks will still request proof of your income. It is to ensure that you will be able to repay them on time. However, if you work as a freelancer or are currently unemployed and are unable to provide any sort of income evidence, the following advice may be of use to you. Before applying for a loan, you can use one of the many online calculators. It is used  to compare your loan to your eligibility for the property.

Talk to the relationship manager

Any bank where you have a savings account will assign you a relationship manager. Your point of contact for any questions you may have will be this manager. When you enter your bank, an officer will put you in touch with your relationship manager if you do not know who they are. Ask them whether they may handle your loan without an ITR or income verification paperwork once you have established that you will make your payments on time.

Add a co-applicant

Consider including a family member as a co-applicant if they have a good credit history and a steady source of income. The likelihood of your loan being accepted will improve if you add a salaried co-applicant.

Explain your income clearly to the officer

An inspection of the property will be conducted by a bank representative. It is done prior to the loan being approved or denied. This is crucial that you explain your income data to the concerned authority. It is done if you already operate a business or are seeking to pledge commercial property. Additionally, inform the officer that you lack an ITR form or income documentation. The officer will compute your annual income and repayment ability using all the information you have provided.

Choose a lower loan to value

The percentage of the loan that the bank will lend is shown by the term Loan to Value (LTV). For instance, if the LTV is 90%, the bank will fund 90% . So the borrower will be responsible for the remaining 10%.  Therefore, try asking the bank to provide you with a lower LTV if you don’t have ITR documents or other kinds of income documentation. Keep in mind that if you select a lower LTV, you will be required to cover the difference with your own funds.

Try peer-to-peer lending

These days, peer-to-peer lending is becoming more and more common. Crowdfunding is used to generate money on a peer-to-peer network. It is then distributed to qualified borrowers at an interest rate. Based on the risk involved in peer-to-peer lending, you can be charged a high-interest rate. This can be an alternative if you don’t have accurate ITR information or income proof.


It is difficult to obtain a loan against property without income documentation and an ITR form. It necessitates a great deal of persuasion, explanation, and patience. Loans are readily available for all kinds of customers, and the financial sector is expanding daily. Finding a better bargain involves doing online research and comparing several lenders who offer loans against property. Before submitting an application for a loan, verify that the property qualifies. You can negotiate more effectively in this way.


Leave a Reply

Your email address will not be published.