Most probably you have a small-scale business from which your generated income is below the taxable limit. So, do you think you need not maintain the accounting books or file income tax returns or ITR? However, you are in desperate need of funds and you’re thinking about taking out a loan. But for that, you don’t have any credit history and have not taken any type of loan from Bank or NBFC. so, the question is- Can you get a home loan without ITR or not?
Getting Home Loan Without ITR Filing
Getting a home loan without ITR is possible from banks or housing finance companies if your income is below the taxable limit.
“Today, many major banks and housing finance companies such as Axis Bank, HDFC, ICICI Bank, Aditya Birla Housing Finance, Hero Housing Finance, and Piramal Housing Finance provide housing loans to self-employed and salaried customers whose income is below taxable limit and mostly in cash. Most of these banks/HFCs run special programs under their affordable housing scheme. You will have to approach these banks/HFCs or their sales agent and collect the application form, fill the same, attach required documents such as Aadhar card, residence proof, business proof, and photographs, among others, and submit,” mentioned livemint.
These banks take a different approach to defining your loan repaying capacity. They assess your accounting books or ‘Kacha Khata’ or any record of income to decide your creditworthiness. They will analyze and drive your income over liabilities or expenses before granting a loan. But in case you do not maintain any type of accounting book, they will assess you based on your in-hand stock, sales, and expense.
Further, “Based on the report filed by these assessors, the bank grants you a loan based on your actual cash income. You will then have to provide a copy of your property papers. The bank will conduct a valuation and title search report and they will give you a date when you get your loan cheque. The bank’s lawyer will go to the property registrar’s office and hand over the home loan cheque to your seller, they will register the property in your name and collect the sale deed and other papers and keep it under their custody till the time your pay back the home loan.”