How to Apply for a Business Loan without ITR?

To get a business loan, irrespective of any sector, your business needs to follow the guidelines for the  minimum ITR for business loan, this solidifies its eligibility for a business loan. But do you know if getting a loan is possible even without ITR? Well yes. Nowadays, business loans can be obtained without filing income taxes. It’s not all plain sailing, though. Interest rates are higher, and the loan tenures are shorter. More entrepreneurs are seeking business loans today than ever because there are more start-ups.

It’s no secret that you will likely get a business loan for your start-up business or setting up your business. However, you should be sure that you file your income tax returns on time to ensure that you don’t get a penalty on your tax claim.

To clear all your concerns, we have created a guide on how to get a business loan without ITR

Why is getting a business loan without presenting ITR documents beneficial?

You can still get a business loan without ITR since it can be challenging to file income tax returns when you start a new business. But as your business grows, you must check

how much ITR is required for a business loan, as this may help you get a bigger business loan.

Now, get back to how it benefits from getting a business loan without ITR. As you might start afresh after an employment gap, you might not have the proper documents or money. You may also find that you cannot repay your loan because your business or start-up business has not generated enough revenue yet.

Regardless of the reason, if you are considering starting a company or business, be assured that getting a business loan without providing your income tax returns can be more advantageous than presenting the documents to obtain the loan.

Here are two key advantages of getting a business loan without ITR:

• The lengthy process of verifying documents is not needed.
• You can get a business loan with immediate effect.

Real Money Solutions offers several different types of loans, you can reach out to us if you have any queries. You can also refer to the following information to understand the requirements and eligibility criteria for getting a business loan without ITR.

Also Read: 6+ Different Types of Unsecured Business Loans

Are there any requirements for applying for a business loan without an ITR?

Here are the top criteria you must meet when applying for a business loan without itr and income proof.

• LLPs, partnerships, sole proprietorships, cooperative societies, limited liability partnerships, etc., are all eligible for business loans.
• Business start-ups and first-timers can also apply for a Startup Business Loan.
• (At the time of loan maturity), the applicant for a business loan must be at least 18 or at most 65 years of age.
• On the borrower’s business requirements and credit profile, a loan amount of 10% to 30 lakhs might be available.
• Credit scores of 700 or higher are required for qualification for the loan. Credit score positively affects loan terms.
• Depending on the lender, the minimum turnover varies.
• The only exceptions are equipment financing, bill discounting, and letters of credit, where the collateral is required.

Also Read: How to get a Business Loan under CGTMSE Scheme without Collateral?

Is it possible to apply for a business loan without an ITR?

We have already answered this question, here’s some more information for the same. Business loans without ITR are available to the following entities:

• Organisations
• Individuals
• Limited Liability Partnerships,
• Trusts
• Cooperative societies
• Partnerships
• Sole proprietorships.

What are the documents required to apply for a business loan without ITR?

A business loan application without ITR requires the following documents:

1. Application form

The bank or financial institution will ask you for your personal information to process your loan. A business loan application must be completed and submitted along with the required information when you apply for one.

2. Photograph

Banks and other financial institutions also require a set of passport-sized photographs to verify your identity.

3. Business plan

As you are contemplating a business loan, banks may require your business plan to disburse the loan. To ensure they don’t run into trouble when sanctioning the loan, ensure you provide a well-documented one.

4. Identification proof

The lender also needs to see a valid photo ID, such as your passport or driving license, so the loan can be processed and disbursed.

5. Pan card

Depending on your lender, you may also be required to provide your PAN to file your income tax returns.

6. Company incorporation certification

Businesses or companies may also need to provide their incorporation certificates to verify their existence.

7. MoU or partnership deed

If your company is a partnership firm, you must also provide a copy of the company’s Memorandum of Understanding or Partnership Deed. In addition, you need to provide a lease agreement or the establishment certificate if you have opened a shop or rented property.

8. Bank statements

Providing your bank account statements may be required if you plan on borrowing from a Non-Banking Financial Institution.

What are the top ways you can apply for a business loan without ITR?

Obtaining a business loan without submitting your tax returns is possible in many ways. It is popular to use government schemes and provide collateral as two methods.

1. Through Government Schemes

Several government schemes allow businesses to apply for loans without presenting collateral or information from their income tax returns.

To learn more about them, visit the official government websites. You can also learn about some top government-backed schemes for small businesses from our in-depth guide featuring Top 8 Government Loan Schemes for Small Businesses in India.

2. When Collateral is Available

The loan application can be amended if you can offer collateral but cannot furnish a copy of your income tax returns. Lenders can process your loan more easily without seeing your income tax returns if you do so.

Conclusion

Many lenders can approve business loans without needing income tax returns. Most of these loans are given to traders and small-scale businesses.

You will repay a business loan at a higher interest rate and within a short time frame if you apply for one without presenting your ITR details. Moreover, you should provide the lender with a substantial bank statement showing you can repay the loan.

To get a business loan without ITR, you can reach out to the best-unsecured business loan providers in Mumbai.