Image default

How to get Business Loan without an ITR

Getting business loans without an ITR is possible in today’s market – a significant con- they come at higher interest rates. Barring this, various banking facilities, such as we, readily offer loans without need for an ITR to be filed.

The importance of ITR

An ITR is a document that serves as proof of income. Banks use this to gauge how much money can be lent to an individual with a guarantee of him for paying it back. It also serves as a sign that the individuals’ income is enough for the interest payments to be kept up with.

So, an ITR serves as:

  • A benchmark for the extent of money length
  • An easier way to avail of low rates of interest.

Reasons to want to get business loans without ITR.

  • New businesses may be inexperienced at filing ideas.
  • Lack of necessary documents
  • Maybe starting a business after a period of unemployment. However, it is unfair to assume the business will not generate enough income to repay the loan.

Individuals/businesses eligible to get a business loan without ITR

  • Individuals 
  • Companies 
  • LLP 
  • Partnership 
  • Sole proprietorships
  • NGO
  • Trust
  • Cooperative societies

Criteria to be filled to avail a business loan without ITR

Required Min Max
Age Yes 18 65 at the time of loan maturity 
Loan Amount Yes 10,000 10 crore or more
Credit Score Yes >700 As close to 900 as possible  
Co-applicant Optional
Turnover Varies
Collateral Optional


Best avenues to avail your business loan from without ITR

  • Banks – Both private and public banks offer business loans without checking the appropriate ITR. However, these are harder to find. There are very few banks that extend this facility. It is difficult for banks to gauge the repayment capabilities of an individual/business without looking at the ITR.
  • NBFCs and MFIs – Easier to get, but the interest to be paid is substantially higher.

Documents required: 

  • Application form 
  • Photograph (passport sized)
  • Business plan- the better and well planned, the higher the chances of getting a loan 
  • ID proof
  • Proof that the business is up and running – Address proof is good evidence 
  • PAN card of business or individual as per availability and requirement
  • Incorporation certificate
  • A rent agreement 
  • Current account bank statement

Easy ways to avail the business loan without ITR

  • Schemes introduced by the government of India can be looked into. For many of these loans, no collateral is required. To see which ones, offer loans without checking ITR, log on to the official website
  • If the collateral is available- In case the individual cannot present an ITR but has personal property, this can be mentioned when applying for a business loan. This further eases the process of getting a loan without an ITR.

Providing personal property as collateral, when it comes to applying for a business loan without ITR or otherwise, makes the process easier. 

In most cases, even when an ITR does not have to be presented to the bank to get a business loan, a bank statement of the current account is demanded for a minimum of a period of 12 months.

Business loans that are granted without having to present an ITR are mainly tailored for small scale trade. As small-scale trade is escalating, with more start-ups coming up every day, the options for business loans being available without an ITR to have gone up.

This has been done, mainly, keeping in mind that a large sector of these new businesses will be started by individuals who have not previously owned any business.

The main things to be kept in mind, when choosing to apply for a business loan without an ITR is that:

  • The tenure to pay the loan amount is going to be shorter.
  • The interest rate is going to be substantially higher.
  • Strong bank statements will be demanded. 

Even so, the process of getting one without an ITR is a lot easier than it was in the past. This is to encourage more economic activity in the country.


1.Can I get business loans without ITR?

It is possible to get business loans without ITR and is getting increasingly easier with time. All banking sectors and other financial facilities provide for this facility.

2.Do both public and private sector banks provide loans without it?

Both sectors provide it, an individual must check with their banks and terms and conditions before starting the application process.

3.What can help when filing for a business loan without ITR?

There is a solid business plan, a good reason for not having it, possible other means to prove income, and a co-applicant and collateral. Any of those mentioned above or a combination should help the bank/loan facility with their decision making.

4.What are the minimum and maximum age to avail of a business loan?

The minimum age is 18, and the maximum age is 65 when the loan matures.

5.Can all kinds of businesses avail a business loan without it?

All kinds ranging from entrepreneurs to companies, can apply.

6.What are the cons of applying for a business loan without ITR?

A slower process, a lower ceiling on the money granted for a loan, and a much higher interest rate. Since the bank will now have to check other sources to seem whether an individual is fit to repay the loan, it is normal to take longer. Higher interest rates will be charged; in return of the favor, they are extending you.

7.Do I need a co-applicant?

A co-applicant is not necessary. However, it may help the process, especially if he/she has filed ITRs. A co-applicant with a steady income tells the bank that interest payments will be kept up with. If taking a loan without presenting ITR, interest rates will hike up to 18-21 percent, so it is necessary to assess whether you will be able to pay them.

8.Do I need collateral?

Collateral is not necessary; however, certain things like personal property will help with favourable decision-making. Banks need to know that you will repay the loan and keep the interest payments. Listing an asset as collateral will make them more sure that they will get their money back.

Related posts

Technology Trends in the Growth of the Successful Online Business


How to Open Your Business Up to a Diverse Workforce


Understanding How to Choose Best PR Agency in Delhi


Leave a Comment