Whether you are looking to start a new business or want to expand an existing one, taking out a business loan is undoubtedly the best way to manage the capital requirements for this endeavor. And, at a time when numerous lenders are offering unparalleled deals on business loans, things may not be as complex as they were earlier. It is generally believed that if you have all the required documents, and you match the eligibility criteria, you can easily secure a business loan without much fuss.
Now, when it comes to taking out a business loan, the applicant must furnish several documents, including the Income Tax Returns of the last financial year. The major purpose of submitting these documents is to verify the applicant's actual income. These documents help the lenders in determining your business loan eligibility. But what if you don’t have the documents related to your income tax returns? Can you still get a business loan? The answer is yes. You can get a business loan even if you don’t have income tax returns. Let’s find out how you can do so in the following post.
Before we proceed further, let’s first take a look at the eligibility criteria for availing a business loan.
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The next thing to check is the documents one needs to submit to avail of a business loan.
Put simply, one crucial purpose of submitting income tax returns is to prove that you are earning money from a source. This is an essential eligibility criterion adopted by a majority of banks and NBFCs before evaluating a business loan application.
To illustrate how individuals or businesses can obtain loans without income tax returns, consider these scenarios:
These examples demonstrate that while income tax returns are commonly used to assess eligibility for business loans, alternative documentation and financial evidence can still support loan approval.
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Conclusion
If you don’t have income tax returns and you still need finance for your business needs, you can explore the aforementioned options before actually applying for a loan. You can check both registered and unregistered lenders and compare their offerings before choosing a specific offer. At Investkraft, we provide hassle-free business loans to entrepreneurs and business owners at reasonable interest rates.
FAQs
Q. What should be my minimum turnover to avail a business loan?
- In most cases, businesses applying for a business loan should have an annual turnover of Rs. 40 lakh. However, self-employed individuals should have a minimal annual income of Rs. 1.5 lakh.
Q. Can I get an unsecured business loan?
- Yes, if you have a good credit score, you can easily get a business loan without pledging collateral. There are many banks and NBFCs that offer unsecured business loans at attractive interest rates.
Q. I am a self-employed person. Can I get a business loan if I have a poor credit score?
- Yes, at Investkraft, we provide hassle-free business loans to self-employed individuals having a poor credit score.
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