6 Proven Alternative Ways to Get a Personal Loan Without ITR in 2025

When applying for a personal without ITR  or business loan without ITR in India, an Income Tax Return (ITR) is often one of the most crucial documents lenders require to assess your income and financial stability.

However, not everyone has an ITR, particularly non-salaried individuals, self-employed professionals, or those whose income falls below the taxable threshold. This can create challenges when seeking loan approval from banks or Non-Banking Financial Companies (NBFCs).

The good news is that you don’t necessarily need to provide an ITR to secure a loan. There are several alternative ways to show your income and strengthen your loan application.

In this article, we explore 6 Proven Alternative Ways to Get a Personal Loan Without ITR in 2025 or business loan without ITR. Whether you’re salaried, self-employed, or a small business owner, these alternatives will help you demonstrate your financial stability and increase your chances of loan approval.

Why is ITR Important for Loan Applications?

ITR is a vital document for lenders to assess your financial position. It shows your income, tax payments, and any exemptions or deductions you may claim, which helps banks and Non-Banking Financial Companies (NBFCs) gauge your repayment capacity.

In general, ITR is used to verify that you earn enough to pay back the loan and that your financial records are in good standing.

However, not everyone has an ITR. Non-salaried individuals or those in the gig economy may not have a consistent income history to submit an ITR, making it harder for them to secure loans through traditional methods.

6 Alternatives to Apply for Personal Loans Without ITR

Looking to apply for a personal loan without ITR? There are several alternatives to help you secure a loan. You can use bank statements, salary slips, or rental income as proof of income. A co-applicant's ITR can also boost your eligibility.

Consider pre-approved loans, gold loans, or P2P lending. These methods can help you get a loan without the need for Income Tax Returns in 2025. Learn more about each option to find the best solution for your financial needs.

Alternative 1: Personal Loan for Salaried Employees Without ITR

If you are a salaried employee and don’t have an Income Tax Return (ITR), don’t worry! You can still apply for a personal loan by providing alternative proof of income. Most lenders accept bank statements and salary slips as valid documents to assess your income and financial stability.

How It Works:

• Bank Statements: Lenders will ask for recent bank statements (typically 3 to 6 months) showing your salary credits. This proves that you receive a stable income.
• Salary Slips: You will also need to submit your salary slips for the last 3 to 6 months. This shows your monthly earnings, which lenders will use to assess your loan eligibility.

Why This Works:

Banks and NBFCs (Non-Banking Financial Companies) often focus on the consistency of your income rather than just tax documents. By showing that your salary is regularly credited to your account, they can assess your repayment capacity.

Key Documents:

• Recent bank statements (3–6 months)
• Salary slips (3–6 months)
• KYC documents (Aadhaar, PAN, etc.)

Advantages and Disadvantages:

Alternative 2: Personal Loan for Non-Salaried Employees Without ITR

Non-salaried individuals, such as self-employed professionals, freelancers, or business owners, often face challenges while applying for loans due to the lack of ITR. However, you can still apply for a personal loan by presenting other forms of income proof.

How It Works:

• Rental Income Receipts: If you have rental property, you can submit rental income receipts as proof of income.
• Service Income Receipts: If you're a freelancer or self-employed, you can provide invoices or receipts of payments for services rendered.

Why This Works:

Lenders are open to assessing income from various sources. By proving a regular income stream through rental or service receipts, lenders can evaluate your ability to repay the loan.

Key Documents:

• Rental income receipts or service receipts
• Bank statements showing transactions
• KYC documents

Advantages and Disadvantages:

Alternative 3: Income Proof of Co-Applicant

If you do not have an ITR, another option is to provide the ITR or income proofs of a co-applicant, such as a family member or spouse. This joint application can increase your chances of loan approval.

How It Works:

• Co-Applicant’s ITR: Lenders will assess the combined income of both the applicant and the co-applicant. If the co-applicant has a stable income and ITR, this strengthens the loan application.
• Other Income Proofs: Salary slips, bank statements, or rental income receipts from the co-applicant can also help establish financial stability.

Why This Works:

A co-applicant’s financial backing can offset the lack of an ITR from the primary applicant, presenting a more stable financial profile to the lender.

Key Documents:

• Co-applicant’s ITR or other income proofs
• KYC documents of both the applicant and co-applicant
• Bank statements for both individuals

Advantages and Disadvantages:

Alternative 4: Apply for a Pre-Approved Loan

A pre-approved loan is a loan offer extended by a lender based on your financial history or relationship with them. It often requires minimal documentation, making it an easy option for those without an ITR.

How It Works:

• Eligibility Check: Lenders assess your eligibility based on your credit score, banking relationship, and repayment history. If you have a good track record with the bank, you may receive a pre-approved loan offer.
• No ITR Required: In many cases, if you have a solid credit history, a pre-approved loan can be granted without requiring ITR or other traditional income proofs.

Why This Works:

Lenders offer pre-approved loans to customers with established trust and creditworthiness. A good relationship with your bank or financial institution may allow you to bypass the need for ITR.

Key Documents:

• PAN card
• KYC documents
• Credit score and history (if applicable)

Advantages and Disadvantages:

Alternative 5: Apply for a Gold Loan

Gold loans are secured loans where you pledge your gold jewelry as collateral. No ITR is required, and gold loans are typically processed faster than unsecured loans.

How It Works:

• Collateral: You offer your gold jewelry, ornaments, or coins as security to the lender. Based on the value of the gold, the lender determines the loan amount.
• No ITR Needed: Since it’s a secured loan, the lender relies on the value of your gold, not your income proof or ITR.

Why This Works:

Gold loans are a great option for those who own valuable gold but don’t have the necessary income documentation to apply for an unsecured loan.

Key Documents:

• Gold items for collateral
• KYC documents (Aadhaar, PAN, etc.)

Advantages and Disadvantages:

Alternative 6: Peer-to-Peer (P2P) Lending

P2P lending connects individual borrowers with investors through online platforms, allowing you to obtain a loan without the need for traditional financial institution documentation like ITR.

How It Works:

• Platform-Based: Borrowers and lenders connect through P2P lending platforms. The lender evaluates the borrower based on factors like credit score and repayment capacity, instead of requiring tax records.
• Minimal Documentation: Often, P2P platforms ask for minimal documentation, and the loan is based on the borrower's creditworthiness.

Why This Works:

P2P lending can provide more flexible terms than banks, especially for individuals without ITR or a traditional credit history.

Key Documents:

• PAN card
• KYC documents
• Credit score (if required)

Advantages and Disadvantages:

Comparison Table: Loan Eligibility with and Without ITR

When applying for a loan, your eligibility is often determined by various factors, including whether you submit your Income Tax Return (ITR) or not. Below is a comparison table that highlights how your eligibility may vary when you have ITR versus when you don't.

Top Lenders Offering Personal Loans Without ITR

Several leading lenders in India offer personal and business loans without requiring an Income Tax Return (ITR). Here’s a list of top lenders that provide loans based on other eligibility criteria like your credit score, bank statements, or other proofs of income.

These top lenders allow you to apply for personal or business loans without needing to submit ITR. Instead, they rely on other documents like bank statements, salary slips, and credit scores to evaluate your eligibility.

Securing a personal or business loan without an ITR is absolutely possible. Many lenders in India offer flexible loan options based on alternative income proofs like bank statements, salary slips, or even collateral such as gold.

While having an ITR simplifies the loan approval process, it’s not the only way to prove your creditworthiness.

For salaried employees, showing bank statements and salary slips can be an effective way to establish income. Self-employed individuals can explore options like rental income receipts or service agreements. In addition, a co-applicant’s ITR or income documents can help improve loan eligibility.

Lenders like Bajaj Finserv, HDFC, ICICI Bank, and others provide loans with minimal documentation, allowing borrowers without an ITR to access funds. Secured loans, such as gold loans, are also a good option if you need quick approval without income proof.

While loans without ITR may come with higher interest rates or lower loan amounts, they can be a lifeline for individuals who need urgent funds. Carefully evaluating your loan options and understanding the requirements will ensure that you can make an informed decision and secure the financial assistance you need.