Is it Possible to Get a Personal Loan without an ITR?

Last Updated : June 30, 2025, 5:51 p.m.

The Income Tax Return (ITR) is an important document that lenders often require when processing a personal loan application. For self-employed individuals, submitting an ITR is typically mandatory. However, salaried applicants may have alternatives such as salary slips, Form 60, or bank statements. So, if you're salaried and don’t have an ITR, you can still apply for a personal loan using these substitute documents. In certain cases, like pre-approved personal loans, documentation requirements may be minimal or even waived entirely.

Can You Get a Personal Loan Without Submitting an ITR?

Yes, it is possible to secure a personal loan without an Income Tax Return (ITR), though it may require exploring alternative options. While most lenders prefer ITR as proof of income, other documents can also establish your eligibility.

• Alternative Documents: You can submit recent bank statements to show a steady income flow.
  
• Co-applicant or Guarantor: Applying with a financially stable co-applicant or guarantor can improve your chances of approval.
  
• Expect Higher Interest Rates: Without conventional income proof like ITR, lenders may charge higher interest rates due to increased perceived risk.

Eligibility for a Personal Loan Without ITR

A personal loan without an ITR is designed for individuals who do not file income tax returns but can demonstrate repayment ability through alternative financial documents. Eligible applicants may include:

• Salaried Employees Without ITR: While many salaried individuals do file ITRs, some do not, especially if their income falls below the taxable limit. If they can produce recent salary slips and bank statements reflecting consistent income, they may still qualify for a personal loan.
• Self-Employed Individuals: Small business owners, freelancers, and consultants often lack regular ITR filings. However, if they can provide proof of income—such as invoices, business income records, or frequent bank deposits—they may be eligible for a loan.
• Individuals with Irregular or Seasonal Income: People working in unorganized sectors or with seasonal income may not have formal income documentation. Still, they can qualify for a personal loan by providing supporting financial documents like cash flow records or savings statements.

Eligibility for Pre-Approved Personal Loans

Pre-approved personal loans are offered to select individuals based on their existing relationship with the lender. These loans often require minimal documentation, as the lender already has access to the applicant’s financial history. You can check your eligibility through net banking, SMS alerts, or customer care.

You may be eligible for a pre-approved loan if you have any of the following:

• An existing personal loan with regular repayment
• An active home loan account
• A good credit card repayment track record
• A salary account with the lender

Loan Against FD: An Alternative When ITR Is Not Accepted

Loans can also be availed against fixed deposits, although they are not classified as personal loans. These are known as secured loans in financial terms. If the borrower defaults, the lender has the right to liquidate the fixed deposit to recover the dues. The loan amount is generally between 80% and 90% of the fixed deposit's value, with interest rates usually set 1% to 2% above the FD’s applicable interest rate.

Using Credit Score in Place of ITR

If you don’t have an Income Tax Return (ITR), a strong credit score can help fill the gap. Lenders review your credit history to determine your ability to repay the loan. A high credit score indicates financial discipline and increases your chances of loan approval, even without an ITR. Therefore, if you’re considering a personal loan without an ITR, ensure your credit score is strong and well-maintained.

Understanding Each ITR Form: A Detailed Breakdown

Now that you're familiar with the basic purpose of ITR Forms 1 to 7, let’s explore each one in detail to help you identify which best suits your financial situation.

A Detail on Several ITR Forms

Quick Guide: Choosing the Right ITR Form for Your Needs

Mandatory Documents for a Personal Loan Without ITR

When applying for a personal loan without an Income Tax Return, lenders rely on alternative documents to assess your financial credibility and repayment capacity. Below are the commonly required documents:

1. Proof of Income

• For Salaried Individuals: Latest salary slips (usually for the last 3 to 6 months).
  
• For Self-Employed Applicants: Income certificates, employer letters, or business income proof like invoices or profit statements.
  

2. Bank Statements

• Most lenders require bank statements for the last 6 to 12 months to verify regular income flow and overall cash management.
  

3. Employment or Business Proof

• This could include an employment contract, a letter from the employer, a business registration certificate, or GST filings (if available), which helps validate income consistency in the absence of ITR.
  

4. Identity and Address Proof

• Documents such as Aadhaar Card, PAN Card, Passport, Voter ID, or recent utility bills are required to verify the applicant’s identity and residential address.
  

5. Proof of Assets or Investments (If Required)

• In some cases, lenders may ask for evidence of owned assets like property papers, investment portfolios, or FD receipts to assess the applicant’s financial strength.

Learn How to Apply for a Personal Loan Without ITR

Even without an Income Tax Return (ITR), you can still get a personal loan by submitting other valid documents. Here's a step-by-step guide:

Step 1: Research Suitable Lenders - Not all lenders offer loans without ITR, so start by shortlisting banks, NBFCs, or digital lenders that accept alternative income proof.
Look for those with flexible eligibility criteria for applicants who don’t file ITR.

Tip: Private banks and NBFCs are often more open to offering such loans.

Step 2: Prepare the Right Documents - Since you don’t have an ITR, gather other financial documents like:

• Salary slips
• Bank statements (last 6–12 months)
• Proof of employment or business
• ID and address proof

Make sure these documents clearly reflect your income and financial stability.

Step 3: Submit the Loan Application - You can apply online through the lender’s website or visit a nearby branch.
Fill out the form with your personal and financial details, and upload or attach all required documents.

Step 4: Verification and Disbursal – The lender will evaluate your application, validate the submitted documents, review your credit score, and confirm the stability of your income. If everything checks out, your loan will be approved and disbursed directly to your bank account.

Conclusion

While an Income Tax Return is a standard document for loan approval, it’s still possible to get a personal loan without ITR, especially if you can present strong alternative proofs, Such as payslips, account statements, and a strong credit rating. Lenders—particularly NBFCs and digital platforms—may offer flexible options, but you must demonstrate stable income and repayment capacity. With the right preparation and documentation, securing a loan without ITR is achievable.