Know how to take personal loan even if you don't have an ITR file

Continue reading to find out how to apply for a loan without submitting an ITR now.

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New Delhi: When applications are applying for personal loans, banks and non-banking financing firms (NBFCs) require a number of documentation. Before approving your loan request, the lender reviews your application and requests specific papers. The Income Tax Return is one of the crucial papers (ITR). ITRs are required for salaried applicants as the majority of paid workers whose yearly income exceeds the exemption threshold are required to file an income tax return each year, however, non-salaried people with non-taxable income may find it difficult to provide these documents when asking for a loan.

Let us figure out how to apply for a loan without submitting an ITR now. Since personal loans are unsecured, you can obtain funding without putting up any collateral. However, self-employed individuals without an ITR who wish to borrow money from a bank or NBFC may require collateral. ()

You can get a personal loan without filing an ITR if you have a solid credit history. For instance, if you have a credit card, you should be able to show a track record of timely bill payments. ()

Lenders are more confident in your capacity to make payments on time when you have a high credit score. If your credit score is low, your loan application may be denied or granted but with an extremely high-interest rate.