Tips for Availing Loan Against Property Without Income Proof or ITR

Everyone faces some sort of financial crisis in our life at one point or another. We have a long list of never-ending things that require money. In such situations, we often tend to opt for a loan. If you are hesitant to avail of a personal loan but have a property registered under your name, you can avail loan against property .

In this type of loan, the market value of your property is assessed, and the lender approves your loan if there are no legal issues.Based on the market value and the lender, the loan amount could range from 40 to 60 percent of the total market value.

4 Tips for Availing Loan Against Property:

Add A Co-ApplicantConsider adding a family member as a co-applicant who has a valid credit history and a regular source of income. An additional co-applicant with a regular source of income can increase the chances of your loan getting approved.

Income
A bank officer will visit your property before approving or rejecting your loan. If you run a business or plan to pledge a property, it is very critical to disclose your income details to the concerned officer. Additionally, let the officer know that you do not have income proof or ITR structure. You can also use a home loan calculator to calculate the loan amount.

DocumentationIf you haven’t filed an IR for the previous year, it is important to explain the reason to the officer. To be on the safer side, counsel a tax consultant right away and record your expenses for the present year.

Lower Loan to ValueLoan to Value (LTV) demonstrates the percentage of the loan that the bank will lend. For instance, if the LTV is 90% the borrower needs to pay the remaining 10% while 90% will be subsidized by the bank.