Income Tax Return (ITR) is an important document of a taxpayer declares the specifics of their income, the tax due on that income, exemptions, and deductions for a specific fiscal year.  This ITR is required when you are going to apply for personal loan or business loans to any bank or NBFC.  The ITR is among the most important documents which a lender may request for, to understand your income. If you are salaried, with an income that falls under the taxable limit, you will have an ITR. There are several benefits of filing Income Tax Return in India. If you are a non-salaried individual with income that is under the taxable limit, you may find it challenging to obtain documents such as an ITR. This, in turn, can make it difficult, to apply for a personal loan or business loan. However, there are so many alternatives way to apply to apply for loan without ITR. There are several ways to show your income to bank and NBFC to get the funds you need. 

In this article we are going to discuss how you can show your income to any lender to get your loan amount easily. We are going to explore six alternatives methods to get the loan amount. 

1.    For Personal Loan if you are salaried employee. 

If you are a salaried employee and looking for a personal loan your lender may ask you ITR for an income proof with all other required documents like Your KYC. Read also here eligibility criteria for Personal loan for Salaried Employee.  Now a day in India taxpayer percentage is increasing every year. For some lenders ITR is a mandatory document to apply for personal loan. But if you are salaried employee and do not have ITR then you can show your attest one year bank statement. This bank statement can shows your salary credited to your bank account and the net salary will be your total income for a month.  It is also required to show your salary slip along with your bank statement. 

2. For Personal Loan if you are not a salaried employee.

If you are not a salaried employee you can simply apply for small personal loan if you do not have ITR. Still have to show some income proof to show your income stability. For example you can show Rental receipt or service receipt. Rental income is defined as the rent received by landlords from tenants. Any separate payments received for the use of furniture or for services such as cleaning of communal areas, hot water, heating or repairs to the property, are also defined by HMRC as rental income. For salaried employee rental income receipt can help you to increase eligible amount.

3.   ITR or Income proofs of Co-Applicant.

To confirm your financial stability, lenders will typically ask you for several documents for income proof. Your ITR is also an important document to ascertain your financial stability. If you do not have an ITR, you can offer other documents such as your salary slips, bank statements, and rental income receipts to establish your financial stability to the lender to get the loan. You can also provide the ITR or other income proofs of co applicant. By doing so, lenders would assess the joint income of the applicant and co-applicant, which can help boost your overall loan eligibility and the possibility of securing a larger loan amount. A co-applicant, thus, aids in presenting you as a low-risk borrower who can service the loan as per the agreement.

4.  Apply for Pre-approved Loan

A pre-approved loan is a loan offer that a lender provides to a borrower based on their financial profile, usually requiring minimal documentation. It indicates that the lender is willing to extend a loan to the borrower, subject to a final approval process.  There are so many lenders are willing to provide lending service based on Credit score. Borrowers can check pre-approved loan offers by providing personal information, like their mobile number or other identifying details like PAN number. Banks like Bajaj Finance, Bank of Baroda, and ICICI Bank allows online applications for pre-approved personal loans, often with instant approval and no hidden charges.

5.  Apply for GOLD Loan

You can obtain a gold loan without providing an Income Tax Return (ITR). However, maintaining a good credit score is beneficial for securing loans in general, as banks typically prefer a CIBIL score of 750 and above. Gold loans are secured loans wherein borrowers can pledge their gold jewellery or ornaments as collateral to secure a loan for a desired amount. Additionally, you are not required to show gold loans in your income tax return unless you are claiming deductions on the interest paid. Your Lender may also request basic documents, such as proof of identity and address, for verification purposes. Inquire directly with the lender about their documentation needs before applying as loan terms can vary between lenders.
 
6.  You can go  Peer-to-peer (P2P) Lending Platforms

Peer-to-peer (P2P) lending platforms facilitate loans directly between individuals, eliminating the need for traditional financial institutions as intermediaries. This allows borrowers to access loans and lenders to invest their funds directly in these loans. Peer-to-peer (P2P) lending is growing popular in India and allows individuals to avail of funds without documents like ITR. In P2P lending, individual borrowers (individuals or small companies) are connected with investors through online platforms or peer-to-peer lending websites. Remember to borrow only from investors registered with the RBI and carefully evaluate the loan terms and conditions, before committing.