Is Personal Loan for Unemployed Attainable without ITR?

Posted by Rupeek Fintech Pvt Ltd. on May 20th, 2021

According to a recent report, it has been estimated that income tax is paid by around 1.5 crore Indians, which is just a little over 1.6% of India’s adult population and 1% of the total population. Thanks to the transparent ITR filing procedure and government reforms, the number of taxpayers selected under scrutiny has come down.

However, due to a lack of financial literacy, a lot of people still struggle to meet their tax liabilities, inevitably mitigating chances of availing quick financing options. Financial institutions look for certain aspects like credit history, income report, and employment history, including supportive documents like ITR, before sanctioning a personal loan for unemployed. In that case, substitute options like secured loan variants can be availed to get rid of a financial crunch. A person can explore other avenues as well to take out a loan without ITR proof.

Measures to Avail Personal Loan without ITR

Document requirements for traditional loans usually vary from one lender to another. While some of them priorities documents and eligibility factors, others impose excessively high interest rates to make up for the assumed risk. However, there are different ways to get your loan sanctioned when you do not possess adequate documents, like ITR. For instance:

• Maintain a Decent CIBIL Score

Financial institutions primarily heed the credit score and repayment track record of a borrower when evaluating a loan application. Since both of these denote the applicant’s creditworthiness, one should try to keep it near 750 and above to get preference from lenders.

• Build Trust with Your Preferred Financial Institution

Notwithstanding ITR being a vital document, a lender can bypass that requirement if you are an existing and reliable customer. And although personal loan interest rates are usually towards the higher side, establishing a good relationship with your existing lender can benefit you.

• Provide Other Income Proof

The ITR is essentially proof of your income. In case you have not filed ITR for one year or are not eligible for the same, provide other documents that substantiate your earnings or savings. The bottom line is, a lender must be assured of your repayment capacity, and legitimate documents to its support can work as an alternative when applying for a personal loan for unemployed.

• Find Alternative Options

For unemployed individuals, arranging documents like salary slips, ITR, etc, is technically impossible. Therefore, instead of depending on personal loans, it is wise to consider alternative options like online gold loans. Due to its secured nature, not only it comes with moderate interest rates, but it also involves simpler eligibility and documentation requirements to support your financial needs.

Collating documents of all sorts, especially income proof, can be cumbersome during emergencies. As a solution to that, top loan providers like Rupeek Fintech offer gold loans without ITR, only requiring you to submit ID and address proof.

Nevertheless, if your primary preference is a personal loan for unemployed, make sure you meet other eligibility parameters to come out as a dependable borrower to lenders. Keep other required documents available before going through with the application process.