How To Avail Business Loan Without an ITR?Estimated reading time: 3 minutes
How To Avail Business Loan Without an ITR?

How To Avail Business Loan Without an ITR?

Posted on Monday, December 23rd, 2024 | By IndusInd Bank

Filing an Income Tax Return (ITR) is not easy and with the fear that any mistake or omission may lead to severe penalties by the Income Tax authorities, a lot of new entrepreneurs and start-up owners do not file their ITRs. Therefore, these people wonder how to get a business loan without an ITR.

If you have not filed an ITR as a new business or a startup, it does not make you ineligible for availing a business loan in India. However, if you are an existing business, you must have filed ITR for at least 1 year.

In case you are offered a traditional bank loan for business at higher interest rates, as a new entrepreneur or start-up owner, you have several other options, for example, an online business loan.

Eligibility for Business Loan without ITR

Who do you think would be eligible to avail a Business Loan even though they do not have one of the most important documents to be eligible for one – the ITR?  How to get a business loan without ITR? What documents are required? Read further to find out about this.

Eligible Entities

The following entities are eligible for Business Loans without ITR:

  1. First Time Entrepreneurs
  2. Start-ups
  3. Self-employed professionals

Also read: Reasons Why Unsecured Business Loans Are Gaining Popularity Among Businesses

Eligibility Criteria

The following eligibility criteria are applicable for an IndusInd Bank business loan:

  1. Minimum and Maximum Age of Applicant:
    You should be minimum 25 years old to apply for the loan and the loan must be completely paid off maximum within 70 years of age. This varies for different lending institutions.
  2. Credit Score:
    Credit Score is a major determining factor for your loan approval as you do not have an ITR. Your CIBIL score should be at a minimum of 680.
  3. Annual Turnover:
    This is also an important factor as the credit institution will need to understand your business turnover to calculate your repayment capacity. Again, the minimum turnover differs for different lending companies.
  4. Collateral:
    Collateral is the security against which the company providing the credit facility sanctions loans. In the case of small ticket business loans up to INR 20 lakhs no collateral is required.
  5. GST:
    GST is compulsory for a loan higher than Rs 5 lakhs.

Documents Required:

Specified Application Form along with the following:

  1. Govt. document/license which proves that business is 24 months old
  2. KYC Documents of entrepreneur – ID and Address Proof
  3. Trade License and business address proof (optional)
  4. Bank Statement for the previous 6 months of the business entity
  5. PAN Card
  6. Aadhaar Card
  7. GST Registration (GST is mandatory only for amount more than 5 lacs)

Note: This is not an exhaustive list of documents and every lending institution will have its specific requirement.

A simpler and more popular alternative is applying for an online business loan.

Click here to apply for IndusInd Bank’s Quick Business Loans , if your business is at least 2 years old.

Most of these are collateral-free loans. You need to visit the official websites to check for your eligibility.

Conclusion

As you can see there are quite a few options available if you wish to avail a Business Loan without an ITR provided you belong to the eligible segment. Please do note that your CIBIL score is of paramount importance for you to be eligible for such loans with favourable terms. So please work towards maintaining a high CIBIL score.

DisclaimerThe information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.

Share This: