How to get Loan against property(LAP) with one year ITR

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

8 tips to get a Loan against Property (LAP) with one year ITR

Getting a Loan against Property (LAP) requires a certain set of documents in the application. Income Tax Returns are one of the most important documents in your application. Usually Banks ask for 2-3 years ITR in your application for Loan against Property. It has been usually seen that borrowers try to file a Income Tax Returns for that year in which their application is made. Usually, Banks don’t give a Loan against Property (LAP) if you are unable to show 3 years consecutive ITR. Let us look at some way in which you can get Loan against Property even (LAP) if you have only one year ITR –

Addition of an additional Co-Applicant – You should add an additional Co-Applicant with your application. By adding an additional credit worthy Co-Applicant with your application you are increasing your chances of getting your Loan against Property sanctioned.
Self funding – Usually, Banks don’t fund the entire amount in case of certain deviations like not providing 3 years ITR. In this case you could add funds from your side. By adding funds from your side, you are increasing probability of getting your loan sanctioned.
Peer to Peer lending – This is a new platform which is evolving at a fast rates in India. P2P lending relies on social lending concept. In this a group of lenders fund a borrower by crowd funding. P2P lending platforms act as platform for financing to the customers. P2P lending platforms have adopted different lending practices compared to existing banking practices. Banks have rigid lending practices which results in exclusion of certain group of people. P2P lending platforms rely on new age technologies like Social media profiling, Data analytics, payment modeling etc to provide Loan against Property to borrowers.
Clear communication – Usually a credit officer visit your premise to discuss your case with you. It is very important at that time to explain your sources of income with document evidence to ascertain your repayment capacity. You should clearly mention reason for not maintain previous year ITRs.
Seek certain HFCs – You should seek certain HFCs that provide Loan against Property with one year ITR. There are HFCs like Shubham and Aadhar which are lenient on providing Loan against Property even with one year ITR.
Maintain gap in ITR filing – It is seen that borrowers files ITR of two years on the same day to showcase 2 year ITR but, you should not do this if you want your Loan against Property to get sanctioned. You should maintain a gap of at least 6 months in filing two year’s ITR.
Maintain good CIBIL record – You should try to maintain a good repayment record of your existing loan. Even if you don’t have an existing loan then you can maintain a good CIBIL record with timely credit card payment.

It is very difficult to get a Loan against Property if you currently have only one year ITR. But, as can be seen from the above article that one can adopt different mechanism to get his loan against Property sanctioned with one year ITR.