How to Get Loan Against Property Without Income Proof & ITR - Kotak Bank
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11 APRIL, 2023

Eligibility checks are an important aspect of the home loan process. Banks assess the risk involved in sanctioning a home loan with the information provided by the applicant. In this, the bank considers the income and tax return of the applicant.

Sometimes, it may be challenging for applicants to show evidence of income or income tax returns for some reason or other. This article will discuss how you can apply for a mortgage loan without income proof.

What is Loan against Property?

A loan against property is a loan that is secured with your collateral. To get this loan, you’ll need to pledge your property as collateral. You may pledge real estate, whether a home, a commercial property or even land. Just ensure the property is in your name.

Before providing you a loan, the lender will look at how much your property is worth now. The maximum loan you can borrow against your property is up to 80% of its market value.

After that, you can use the loan for anything from education to medical or vacation expenses.

How to Get a Loan Against Property Without Income Proof?

Banks require income evidence before they grant you a loan against your property. But some professionals, like freelancers, don't have a fixed employer, so it is hard for them to submit a source of income. In these situations, banks will decide on loan applications depending on the applicant's income, property value, and other factors.

Tips for Obtaining a Property Loan Without Income Proof or ITR

Obtaining a loan against property without income proof in India can be challenging, especially if you don't have income proof to show. Lenders typically require income proof to assess the borrower's ability to repay the loan.

If you don't have evidence of income but want to get a loan against your house, there are a few different avenues that you may pursue.

  1. Consider alternative forms of income: If you don't have a traditional job with a regular salary, show proof of other sources of income, such as rental income, dividends, or business profits. These can work as evidence of your ability to repay the loan.
  2. Monitor and replenish your savings account: Keep in mind that lenders will look closely at how you handle your money if you apply for a mortgage loan without income proof. So make sure you have enough money in your account. Even if you don't have the essential income documents, your loan application will be seen positively if you have good banking habits.
  3. Use a guarantor: Consider using a guarantor for the loan. A guarantor is a person who agrees to pay off the loan in case you are unable to do so. In such cases, the guarantor's income and creditworthiness can increase the chances of loan approval.
  4. Explain the income document shortage: Chat with the bank representative regarding the loan documents and explain why you don't have your tax return or evidence of income. If you don't have proof of income but have a good reason, you might be able to get a loan against property without income proof in India.
  5. Tax payments - It is in your best interest to proactively contact a tax expert and submit your taxes. This way, you can show the lender that you can manage the loan repayments.

Documents for Loan Against Property Without Income Proof

If you want to apply for a loan against property without income proof in India, ensure you have the following documents:

  1. Proof of identity: This may include a government-issued identification card such as a passport or driver's license.
  2. Proof of address: Utility bill or bank statement showing your current address.
  3. Credit report: A copy of your credit report to assess your creditworthiness
  4. Asset documents: If you are applying for a secured loan, you will need to provide documents related to the asset being used as collateral, such as the title or registration papers of the property.
  5. Guarantor information: If you're borrowing a loan with a guarantor, you will need to provide their personal and financial information, including proof of identity and income.
  6. Business documents: Business profits and loss sheets need to be shared with the bank. This is applicable in case you're using the business profit as a source of income.


Read also: भूमि ऑनलाइन


Obtaining a loan against property without income proof can be challenging but not impossible. Consider the tips discussed above to increase your chances.


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Frequently Asked Questions

Can the full value of the property be taken as a loan?

Only 80% of the property value can be taken as a loan from the bank. The lender evaluates the property’s current price before deciding your loan limit. And based on that, you will get a loan against your property. So don’t approach a bank for a loan against property in a myth that you’ll get 100% value of your property as a loan.

Is There Any Restriction on Loan Again Property utilization?

Banks don’t levy any restrictions on loan usage for borrowers. It means they can use the loan for whatever purpose they want; the lender won’t track its usage. A loan against property is a secured loan in which the borrower pledges the residential and commercial property to get a lump sum amount.

What is the maximum loan given in LAP?

The maximum loan borrowers can get in LAP is 80% of their property’s current price. So do evaluate the same before applying for a loan against your property. This way, you get the idea of what is the maximum loan the bank can offer you in a LAP. And knowing the maximum loan amount helps you manage the finances better for the purpose you are taking the loan.

Can I get a loan against property without a regular job?

Loan against property is available to both salaried and self-employed individuals. So if you don’t have a regular job but earn a handsome income to repay the loan, submit income proof. By submitting income proof, you can assure the bank that you are capable of paying back the borrowed amount even if you don’t have a regular job. For income proof, submit Form 16, bank statements, and income tax returns.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.