How to Get a Personal Loan Without ITR

A personal loan, from the point of view of its application and approval processes, is one of the easy financing options to meet expenses for various purposes, like a medical emergency, a wedding, a vacation or a big celebration. Usually, you do not need to inform the bank about the purpose of the personal loan, which makes it a popular need-based financing option in the market.

However, the income documentation for a personal loan for salaried individuals has always been a crucial part of conventional loan application. That said, instant personal loans like FIRSTmoney from IDFC FIRST Bank are making their way, with quick approvals without the need of ITR or other documents, except for your PAN card, necessary for the VKYC process. 

You can get an instant cash loan from IDFC FIRST Bank without the need for Income Tax Returns (ITR).

What is an Income Tax Return (ITR)?

An Income Tax Return (ITR) is a mandatory document filed with the government to disclose your income and tax liabilities for a financial year. It helps determine whether you have paid the correct amount of taxes or are eligible for a refund. For lenders, ITR serves as proof of your financial stability, making it a critical factor when applying for personal loans or other credit facilities.

Why is ITR Important?

1. Proof of Steady Income

ITR provides verified documentation of your earnings, serving as evidence of a consistent income stream. Lenders rely on this to assess your ability to repay loans, especially for significant amounts.

2. Improves Loan Approval Chances

A regularly filed ITR can fast-track your loan application. It assures lenders of your financial discipline and positions you as a trustworthy borrower.

3. Lower Interest Rates

Having an ITR makes you appear as a low-risk applicant to banks and financial institutions. This often leads to better terms, such as reduced interest rates, on loans.

4. Eligibility for Tax Deductions

By filing ITR, you can claim various tax benefits under sections like 80C and 80D, potentially saving a significant amount of money on your annual taxes.

5. Boosts Credit Score

Regular ITR filings contribute positively to your credit score, enhancing your chances of accessing higher loan limits or credit card approvals in the future.

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 730 and above a good score for any loan, including an instant personal loan through FIRSTmoney. Beyond 730, 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.

How are FIRSTmoney instant loans unique?
 

IDFC FIRST Bank offers FIRSTmoney instant personal loans without ITR through a hassle-free digital application process. All you need is your PAN card and credit score of 730 and above. Here are some features that make this digital personal loan unique.

1. Instant personal loan access: With IDFC FIRSTmoney, you can access funds whenever the need arises, eliminating the waiting period associated with traditional loan approval processes.

2. Flexibility: The loan offer feature of IDFC FIRSTmoney provides unparalleled flexibility, allowing you to borrow as much or as little as you need, up to your approved limit, and repay at your convenience.

3. Zero foreclosure charges: IDFC FIRST Bank FIRSTmoney offers a cost-effective borrowing solution through zero foreclosure charges. You get the freedom to repay your used funds anytime with flexible tenure options.

4. Flexible loan amounts: With this instant personal loan, you get to choose any amount starting from ₹5,000 up to your approved limit. In addition, you get the option to withdraw amounts in tranches or in one go.

5. Customisable repayment options: FIRSTmoney offers you the freedom to choose from flexible tenure options ranging between 9 months to 60 months that suits your financial needs.

6. Both Salaried and Self-Employed Individuals can apply

Conclusion
 

While ITR remained a crucial step for conventional loan approvals, instant personal loans have paved ways for quick loan access without the need for producing ITR documents. The digital application further eases the process with minimal documentation and quick approvals. Making the process even more convenient, FIRSTmoney provides instant loan access with immense flexibility and convenience to meet your varying financial requirements without hassles.  



 

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.