A loan against property is an excellent instrument for business entities and self-employed individuals seeking financial aid. When borrowers cannot provide income proof to lenders, a loan against property allows borrowers to obtain the required funds even if they cannot provide income proof.

Here are the simple steps to get a loan against property without income proof:

How to Get a Loan Against Property Without Income Proof

Below are some of the ways to obtain a loan against property without income proof:

  1. Show Sound Creditworthiness

Sound creditworthiness is among the crucial factors for a loan against property approval. It indicates if the borrower can repay the loan on time. The higher the credit score, the better the creditworthiness. A high score shows financially responsible behaviour and a sound track record of timely loan repayment. Maintaining a high credit score can help you get approval for a loan against property without income proof.

  1. Present Alternative Income Source

Self-employed or business persons may have other assets or sources of income, such as rent and dividends. Alternative income sources can help borrowers qualify for a loan against property.

  1. Provide High-Value Collateral

We allow borrowers to pledge their commercial or residential properties for a loan against property. Generally, a property valued at a minimum of Rs 50 lakhs is deemed fit for collateral. A high-value property can help borrowers to obtain a loan against property without income proof simply because it reduces the lending risk.

  1. Consider Co-Borrower

If you have a property with a co-owner with a sound financial profile, you can jointly apply for a loan against the property. The co-borrowers financial profile can enhance your chances of a loan against property approval.

  1. Reverse Mortgage

There is a specific loan against property for senior citizens called a reverse mortgage, where customers need not present income proof. It is a regular source of income for senior citizens owning property in India.

  1. Provide Documents Other than Income Proof

As we offer a loan against property without income proof, borrowers need to submit a few documents other than income proof while applying for a loan against property.

– Previous three years’ ITRs to assess the income stability and growth potential.‌

– Profit & Loss (P&L) statement to get insights into the business revenue and expenses over a specific period.

– Income statement to understand the cash flow, financial performance and profitability of the business.

– Balance sheet of a business to assess its liquidity and solvency. 

– Past six months’ bank account statement to understand the borrower’s financial behaviour and probability of timely loan repayment.

– Past three years’ business continuity proof to understand the operational sustainability of the business and ability to generate revenue.‌

Follow these tips and prepare the necessary documents to check your financial stability and repayment capability. Depending on the eligibility, borrowers can consider a reverse mortgage loan – a loan against property for senior citizens without income-proof requirements.