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As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.
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FinFIRST Blogs
Personal Loan
Personal Loan without ITR: all you need to know
Summary: Whether a medical emergency, your child’s higher education expenses or a wedding a personal loan always comes in handy in times of need. While today it is easy to obtain a personal loan, certain documents are mandatory for approval. An application for a personal loan without ITR or other critical documents has a higher chance of rejection. Read on to find out more.
A personal loan, from its application and approval point of view is one of the easiest solutions to look up to for urgent purposes such as a medical emergency or for other reasons like a wedding, vacation, a grand celebration, etc. Usually you do not need to inform the bank about the purpose of the personal loan.
However, you should know that the income documentation for a personal loan for salaried and self-employed people differs. While the salaried can get a instant personal loan based on salary slips and bank statements, an Income Tax Return (ITR) may be required for self-employed people. Hence, a self-employed individual cannot obtain a personal loan without ITR.
Let's explore a few steps self-employed individuals can take to get a personal loan without ITR.
Secured vs unsecured personal loan criteria
A personal loan is an unsecured loan, which means you don't need to pledge any security or collateral to avail of it. However, if you are a self-employed person seeking a personal loan without ITR, you may opt for a secured loan.
When an individual offers security against a loan, the bank may waive the ITR requirement per the personal loan criteria. Banks don't lend the entire collateral value as a loan but calculate the loan-to-value (LTV) ratio and arrive at the loan amount accordingly. For example, assume you have offered security worth Rs 5 lakhs, and the bank has an 80% LTV ratio. In this case, the maximum loan the bank can offer is Rs 4 lakhs.
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Determining eligibility for a personal loan without ITR
The role of credit scores in getting a Personal Loan without ITR
The next step to getting a loan without ITR is to build and maintain a good credit score. Banks consider a CIBIL score of 750 and above a good score for any loan, including a personal loan. Beyond 750, the higher the CIBIL score, the better the chances of getting a personal loan without ITR.
A higher CIBIL score may also help you get a personal loan of a higher amount, and that too at a lower interest rate.
The role of repayment history
The bank goes beyond your CIBIL score when evaluating your loan application. They check your loan repayment history. If you have been making the entire monthly repayment (and on time), it shows you have good credit discipline; and banks prefer lending to such customers.
IDFC FIRST Bank Personal Loan criteria
IDFC FIRST Bank offers personal loans without ITR through a hassle-free digital application process. The interest rates are competitive, and loan tenures are flexible up to 84 Months for Salaried Individuals. The maximum loan amount can be upto 1 Crore.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.
