When you’re self-employed, getting access to credit can often be a challenge—especially if you don’t have income tax returns (ITRs) to show. However, many financial institutions in India now offer personal loans for self-employed individuals without ITR, understanding that income proof can take multiple forms.
In this article, we’ll explore how to get a personal loan without ITR, eligibility requirements, documents needed, top banks/NBFCs offering such loans, and smart tips to increase approval chances.
Why Self-Employed Individuals May Lack ITR
Before diving into the loan details, it’s essential to understand why some self-employed individuals may not have filed ITRs:
- Income below taxable limit
- Irregular income
- Lack of knowledge or awareness
- Cash-based business or freelancing
- Newly started business (less than a year)
Though ITR is a standard income proof, lenders are becoming flexible by accepting alternative documents.
Is It Possible to Get a Personal Loan Without ITR?
Yes, many lenders—especially NBFCs (Non-Banking Financial Companies) and Fintech loan apps—offer personal loans to self-employed individuals without requiring ITR, provided the borrower meets alternative eligibility norms.
Key Features of Personal Loans Without ITR
| Feature | Description |
|---|---|
| Loan Amount | ₹25,000 to ₹5 lakhs (varies by lender) |
| Tenure | 6 months to 60 months |
| Interest Rate | 12% to 36% per annum |
| Processing Time | 24 hours to 7 days |
| Approval Type | Income-based or collateral-backed |
Alternative Documents You Can Submit Instead of ITR
If you don’t have ITR, you can still apply by submitting:
- Bank statements (last 6–12 months)
- Business registration certificate (GST, MSME, Shop Act, etc.)
- PAN card and Aadhaar card
- Sales invoices and purchase bills
- Rent agreements, utility bills
- CA-certified income statement
- Credit report or past loan repayment history
💡 Pro Tip: Keep your business bank account healthy with regular credits; lenders trust visible bank cash flow more than just paper proof.
Top Lenders Offering Personal Loans Without ITR
Here are some banks and NBFCs that may consider applications without strict ITR requirements:
| Lender | Minimum Loan | Max Loan | Interest Rate (Approx.) | ITR Mandatory? |
|---|---|---|---|---|
| Bajaj Finserv | ₹25,000 | ₹5 Lakhs | From 13% p.a. | Not always |
| MoneyTap | ₹10,000 | ₹5 Lakhs | From 14% p.a. | No |
| EarlySalary | ₹8,000 | ₹5 Lakhs | From 18% p.a. | No |
| FlexSalary | ₹10,000 | ₹2 Lakhs | From 15% p.a. | No |
| Home Credit | ₹25,000 | ₹2 Lakhs | From 16% p.a. | No |
| PaySense | ₹5,000 | ₹5 Lakhs | From 14% p.a. | No |
| Indifi (for MSMEs) | ₹50,000 | ₹50 Lakhs | From 12% p.a. | No (depends) |
⚠️ Always read the terms and conditions before applying. Some lenders may require alternative documents in place of ITR.
Eligibility Criteria for Personal Loan Without ITR
Eligibility varies by lender, but most commonly include:
- Age: 21 to 58 years
- Business Vintage: Minimum 6 months to 2 years
- Minimum Monthly Income: ₹15,000 to ₹30,000
- Credit Score: Preferably above 650
- Valid Proofs: PAN, Aadhaar, bank statement, and address proof
How to Apply for a Personal Loan Without ITR
Follow this simple process:
- Shortlist Lenders
Choose NBFCs or FinTechs that accept alternative documentation. - Check Eligibility
Use online calculators or eligibility tools to avoid rejection. - Apply Online or Offline
Submit documents digitally or visit the branch. - Submit Alternative Proof
Provide bank statements, invoices, and KYC. - Wait for Verification
Most loans are approved within 24–72 hours. - Loan Disbursal
Once approved, the loan gets disbursed to your bank account.
Types of Self-Employed Individuals Who Can Apply
| Category | Examples |
|---|---|
| Small Business Owners | Kirana stores, salons, boutiques, etc. |
| Freelancers | Designers, writers, IT consultants |
| Traders | Wholesalers, resellers |
| Professionals | Architects, doctors, CA, lawyers |
| Gig Workers | Swiggy/Zomato delivery, Uber/Ola drivers |
Secured Personal Loans as an Option
If your credit profile is weak and you lack income proof, consider taking a secured personal loan:
Assets You Can Use as Collateral:
- Gold ornaments
- Fixed deposits
- LIC policies
- Mutual funds or shares
- Property documents
✅ Collateral increases your loan approval chances and lowers the interest rate.
Benefits of Getting a Loan Without ITR
- Easy documentation process
- Quick approval and disbursal
- Suitable for new businesses
- Builds credit score
- No need to delay business or personal needs due to paperwork
Risks and Drawbacks
- Higher interest rates
- Shorter repayment periods
- Smaller loan amounts
- Risk of over-borrowing
- Risk of scams (especially with unknown FinTechs)
🚨 Always verify the lender’s credentials before sharing documents.
Tips to Increase Approval Chances Without ITR
- Maintain a Good Credit Score
Pay EMIs and credit card bills on time. - Use a Business Bank Account
Helps show consistent income flow. - Apply with an NBFC
More flexible than traditional banks. - Avoid Multiple Applications
Too many loan applications can hurt your credit score. - Offer Collateral if Needed
This helps when your profile is borderline weak. - Get a Co-applicant
A salaried co-applicant with a good credit score helps improve approval chances.
Frequently Asked Questions (FAQs)
Q1. Can I get a personal loan if I don’t file ITR?
Yes. Many NBFCs and FinTech lenders offer personal loans using alternative documents like bank statements and GST certificates.
Q2. Is a good credit score necessary?
Yes, a credit score above 650 increases your chances significantly.
Q3. Can freelancers get a personal loan without ITR?
Absolutely. As long as you can prove regular income through bank statements or client invoices.
Q4. Will the interest rate be higher?
Usually yes. Loans without ITR often come with higher interest rates due to higher risk.
Q5. How fast can I get the loan disbursed?
Some lenders disburse the loan within 24 to 48 hours, especially if documentation is complete.
Conclusion
While not having an ITR can limit your financing options, it doesn’t close all doors. Today’s lending ecosystem has evolved to cater to a wide range of self-employed individuals, even those without traditional income documentation.
With smart planning, the right lender, and strong alternate documentation, you can secure a personal loan without ITR and meet your personal or business needs seamlessly.
✅ Pro Tip: Regularly file your ITR going forward to unlock better loan offers and financial products in the future.