Loan Against Property (LAP) is a good recourse when you have a financial crunch. Although several questions arise about LAP it is self-explanatory. It is a loan that you can acquire against existing property. Moreover, your property may either be commercial or residential. Also, a plot is acceptable by several lenders. However, the registration of the property should be in your name. Sanction of LAP takes longer than regular loans. It is because the lender assesses all the assets and evaluates the value of your property. Furthermore, the lender will consent to only a percentage of the value of your assets. Some people want to get a loan against property without income proof. Is it even possible? Yes is the answer, it is very much attainable. Additionally, you can get a Loan without ITR and Income Proof both.
LAP without Income Proof and ITR:
In India, most financial agencies ask for valid income proof and ITR. They would not proofer you a loan even you provide valid documents for your properties. You must put forward all the documents that prove your income from such organizations. It is a major issue if you are a freelance or between jobs. However, some agencies provide a loan against property without income proof. Many LAP providers are putting a step forward to ease the process. Aditya Birla Finance, Bajaj Finserv, and Magicbricks are some of the companies that allow you to have a LAP without income proof.
Methods to Attain Loan without Income proof:
Here are some of the methods to attain a loan without income proof.
Appeal with a co-applicant:
It is advantageous to have a co-borrower when you apply for a LAP without income proof. Besides, having a female co-applicant can decrease the interest rate. It acts as an assurance to the organization. In addition, it is advantageous if your co-applicant has proof of income.
Have a meet with the Relationship Manager:
Every savings bank has a relationship manager. They help you out with the formalities concerning your loan. Additionally, they connect you with the personnel who deal with such cases. It is your job to convince and assure them you will repay the debt on time. Also, have a clear conversation about the absence of your income proof.
Keep your Banking Activities under Check:
Before you appeal for a LAP make sure your bank activities are fine. Also, make sure to maintain the minimum balance in your savings account. In addition, the funds in your banks should be sufficient. This elevates the chances of you getting a loan against property.
Explain the absence of your ITR and Income Proof:
The reason for the absence of your income proof should be valid. Also, justify your not filing an income tax return (ITR) in the previous year. The loan officer will scrutinize your income to evaluate your capacity to repay the loan. If they do not find the justifying reasons then you will fail to get a loan against the property.
Select of Low Loan to Value Ratio (LTV):
Loan to Value is the ratio of the loan to the property’s value. In other words, it is the percentage of your asset’s value in the market that a lender can offer. For an instance, if you consider taking 50% LTV then the lender will pay you 50% of the expenses. That implies you will have to pay 20% of the price only.
Peer to Peer Lending:
In the present era of digitization, there are many alternatives to LAP. Peer-to-peer funding, crowdfunding is under extensive use. Furthermore, raising such funds is easier. It is because you get such funds from people or groups that have similar goals to achieve. However, you should be carefully borrowing from such groups. They apply complex terms and conditions, have clarity on them. Besides, some groups have hidden charges. Do good research about them and then appeal for a loan.
Document Requisition for a LAP without ITR and Income Proof:
Financial platforms ask for the following documents to complete getting LAP:
- Complete Know Your Customer formalities (KYC)
- Present your address proof like Adhaar Card, Driving Licence, Electricity Bill, Telephone Bill, Passport etc.
- Also, provide Identity Proof like Passport, PAN card, Adhaar Card etc.
- Besides, it is compulsory to present a bank account statement to the financial companies. Moreover, it should be a statement for the last 6 months.
- Two copies of passport size photographs are also necessary.
- Additionally, for paying the processing fee you have to issue a cheque.
Loan Against Property helps millions of people worldwide. It enables people to get a loan and make their dreams come true. However, getting a LAP without income proof and ITR is complex proof. Only a few financial agencies give you a chance to have a loan without income proof. However, justifying the absence of income proof is a tedious job but not an impossible one. Also, you can opt for options like crowdfunding to get a loan hassle-free.
