Can I get a Loan (LAP) without income proof?

by varun · Published September 2, 2020 · Updated December 24, 2021

If you have ever applied for a Loan against Property in any Bank then certain set of documents are asked by Banks to even start your application. It has been observed that applicants think that by mortgaging a property in Loan against Property they should at least get a loan that is half of current market value of the property. But, property that you put up as a mortgage just acts like a final collateral in your application for Loan against Property. Your repayment capacity would always be decided based on your income generation capacity and current work profile. We have prepared an exhaustive list to solve your queries regarding Loan against Property without income Proof-

Clear communication with credit officer – Usually, a credit officer visits your premise to discuss your application with you. It is a perfect time to discuss your occupation, sources of income, expenses etc with him. If you don’t have a income proof like salary slips or Income Tax returns then you should try to explain your sources of income with valid documents like Sales receipts, inventory positions etc to help credit officer to assess your income calculation. It is quite important to discuss your business model with him as clearly as you can. This would also help in getting a loan without income proof.
Add an additional Co – Applicant – You should add an additional Co-applicant to your Loan application. A credit worthy Co-applicant with excellent financial position and repayment history would increase the comfort of lending institutions.
Add funds from your side – Usually in most of these cases banks try to mitigate their risk by offering a lower amount compared to loan amount applied for Loan against Property. In this situation it is best to add funds from your side to complete the funding requirement.
Peer to Peer Lending – This is a recent development in Indian lending industry. These institutions follow new lending practices compared to existing practices adopted by Banks. They also look into factors like social profiling, payment modeling, data analytics etc. to calculate eligibility for a Loan against Property.
Seek certain HFCs – There are certain HFCs that are quite lenient on lending to a individual without an income proof. You can always reach out to them to get a Loan against Property without income proof.
Maintain good CIBIL record – You should always maintain a good CIBIL record and it is even more important if you don’t have a valid income proof. You can maintain a good CIBIL record by availing few credit cards and maintaining your payment from credit card on time.

Getting a Loan against Property without an income proof can be quite an uphill task for a layman. But, as we can see from above articles you can still fulfill your dream of getting a loan against Property by following above mentioned points. We would continue to write more articles on without income proof loan. Meanwhile, you can read our post on how to get LAP with only one year ITR(Income tax return).

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