The process of sanctioning a Home Loan is thorough and detailed. It essentially involves scrutiny of an applicant’s eligibility. That includes evaluating all the essential Home Loan documents required – right from KYC documents to income proof, income tax returns, credit reports and property documents. Since all these documents help the financial institutions verify an applicant’s creditworthiness, they evaluate how much of a risk it is to sanction a Home Loan to him or her. Thus, documents such as ITR and income proof are mandatory in the Home Loan application and approval process. In most cases, they cannot be left unaccounted.
Although it can be difficult to produce proof of income or adequate income tax return proofs due to unemployment, the informal nature of one’s profession or unforeseen circumstances. So, in such cases, how can one apply for a Home Loan without ITR or income proof?
There are workarounds to obtaining a Home Loan without ITR or a Home Loan without proof of income. The following article takes a look at some of them one by one:
Apply For the Home Loan with a Co-applicant
You can always rely on a co-applicant for a Home Loan approval. Although the co-applicant should have the income proof and ITR documents available. Thus, through a joint application, you can easily clear the hurdle of getting a housing loan approval without an ITR and income proof documents. In such a case, the co-applicant will become the primary borrower. There are other advantages of having a co-applicant as well. The financial institution will most likely be able to sanction a larger Home Loan amount to co-applicants. This is because of the improved eligibility and creditworthiness of the application.
Apply For a Lower Home Loan Amount
To improve the chances of getting a Home Loan without proof of income or ITR approval, you can opt for a low Loan to Value (LTV) ratio. That means taking less money from the financial institution as a Home Loan amount which would reduce your overall obligation. Doing so improves your chances of getting a faster Home Loan approval without having to produce necessary documents like income proof or ITR. In such cases, the risk involved for the financial institutions is lesser and they would be more likely to sanction the Home Loan quickly. However, exercise caution and save enough money to afford a big down payment without dipping into emergency funds.
Utilise Your Existing Banking Relationships
The third way to get a Home Loan without ITR is to reach out to your customer relationship manager or your existing financial institution’s officials and explain your situation to them. Assure the institution of your capability to repay the loan and provide adequate documents in future when possible. This financial institution should be the one where you have a savings account. If you have been a loyal customer over the years with your KYC done, then the officials will help you obtain a decent Home Loan without asking for many documents.
Must Read: How Much Home Loan Can I Get on 40,000 Salary?
Home Loans Against Special Programs
For certain customers who do not have a formal revenue stream or who obtain the majority of their income from cash-based sources, several financial institutions conduct special programmes. For these customers, PNB Housing additionally offers a scheme called “Unnati Home Loan.” The only caveat is that the cost of borrowing will be a little higher than it would be for a standard house loan.
PNB Housing Unnati Home Loans
PNB Housing wish to be a partner in your aspiring journey by bringing you ‘Unnati Loans’, a unique and specially designed home loan solution that will help you realize the dream of living in a home, you can call your own.
So, whether you are a salaried individual of stable or local business entity or a self-employed individual like kirana shop owner, garment shop or other business set ups who may or may not have formal income proof but have sufficient income to serve obligations, your search ends here and Unnati home loan is a right product for you.
The simplified loan procedures, minimal documentation and a bouquet of customer friendly services associated with ‘Unnati Loans’ is just our way of saying “We Care!”
Unnati Home Loan Eligibility Criteria
You can avail loans for purchasing a house if you are:
- An employee of local and stable business entities like Petrol Pump, Restaurant, Jewellery shops, Garments shop etc. The employer’s business can be a proprietorship/partnership/private limited/limited company/trust etc.
- Self-employed customers who do not have formal income proof. However, you need to have sufficient income to service monthly EMIs. In all these cases, customers to have independent business set up
- An individual who is earning a fixed minimum income of INR 15,000 per month. This is valid for combined income also in case there is a co-applicant.
Your age at the time of loan maturity should not be more than 70 years.
Salient Features and Advantages
- Maximum loan amount of up to Rs. 35 lacs
- Funding up to 90%* of market value of the property
- Attractive rates of interest starting at 11.35%* P.A.
- Robust service delivery model – door step services ensuring easy and fast approval & disbursal of loans
- Pan India branch network
- Minimal formal income documentation
- Lower EMIs with upto 30 years tenure
- Customised eligibility to adjust your needs
- Trusted and reliable brand with over 33 years of experience
Apply Now:- Unnati Home Loan Enquiry – PNB Housing
Final Words
By following the above tips and tricks, you can certainly improve your chances of getting a Home Loan without ITR or income proof. You may have to go the extra mile to get approval and sanction. However, it is best to keep your income proof and ITR documents handy as they help speed up the loan approval process and make it hassle-free!
For more information, connect with PNB Housing representatives to understand how we can help you with a quick and efficient Home Loan application and disbursal without the income proof and ITR documents.
