How to Get a Personal Loan for Self-Employed Individuals without ITR?

Personal Loan for Self-Employed

In recent times, the demand for online personal loans has increased tremendously due to the superior levels of ease they offer. Whether you are a salaried individual or self-employed, getting a personal loan has become a matter of minutes. The evolution of mobile-based loan applications has brought a revolutionary change in the Indian financial sector. Numerous banks and NBFCs in India offer hassle-free, faster, and affordable loan services to both salaried and self-employed individuals.

If you are a self-employed individual looking to avail of a personal loan, you may be asked by the lenders to provide income documents like income tax returns. This ITR document is a testament to the fact that you are generating income from your actions. But, what if you don’t have income tax return documents? Can you still get a personal loan without ITR? We will try to find out the truth in the further part of this article.

Obtaining A Personal Loan For Self-employed People

If an individual works for themselves and can provide evidence of income, applying for a loan will be easy. Lenders usually verify the borrower's papers and income source before extending a loan offer. As a result, getting a loan is made easier by supplying all required paperwork, including evidence of income such as an ITR.

On the other hand, some persons operate as sole proprietors. They are the only owners of the business. And sometimes, people starting a business or a startup may or may not have an ITR certificate. However, there's no reason to worry. Like any other employee, a self-employed person can easily qualify for a personal loan. In these situations, you must find lenders who provide personal loans to independent contractors without an ITR. You might need to provide additional documentation to get your loan authorized. Continue reading to learn more.

Personal Loan Eligibility Criteria for Self-employed Individuals

Self-employed individuals are required to fulfill the requirements before making a personal loan application. These people also need to ensure that the chosen lending partner offers personal loans to independent contractors with or without an ITR.

  • Furnish proof of Indian citizenship or residence.
  • Self-employed applicants must be at least 21 years old at the time of application. The maximum age limit is capped at fifty-eight years.
  • A minimum of 2 years of industry-related job experience.
  • A self-employed applicant's monthly income must be at least Rs. 25,000.
  • The applicant should have a credit score of at least 650.
  • Other KYC documents required are driver's licenses, passports, Aadhar cards, and PAN cards.

Keep in mind that each lender may have its own set of requirements in terms of documents. So, make sure to check the required documents of the particular lender.

How to Get a Personal Loan without Submitting ITR?

You can still get one if you are a self-employed person looking for a personal loan but don’t have ITR docs. All you need to do is to explore several ways available these days to avail a personal loan. Let’s look at them below for more details.

  1. Get a Secured Loan: If you are finding it hard to get a personal loan without ITR, it is recommended to opt for a secured personal loan. A secured personal loan is a kind of loan where you need to pledge collateral or security to get the loan amount. The exact loan amount will depend on the overall value of the asset you pledge against your loan application. Getting a secured personal loan is easy as you can pledge anything like gold, real estate, or any other item.
  2. Pay all Your Dues: A majority of lenders prefer to give loans to those who have an excellent credit history. These profiles give them confidence that their amount will come back on time along with the interest. If you want to get a personal loan without submitting an ITR, you must clear all your pending dues which would give a boost to your credit score.
  3. Maintain a Healthy Credit Score: Your credit score is extremely important. Even if you don’t have proper documents, you are most likely to get approval on your loan application if your credit score is high (>750). From reporting errors in your credit report to paying all dues on time, there are several steps you can take to embrace a healthy credit score down the line. A good credit score means excellent credit health.
  4. Establish a Good Rapport with the Lender: A loan for self-employed individuals without evidence of income may be easier to secure if you have a long-standing connection with a certain bank or NBFC. Depending on your previous relationship, you might not have to give lenders your income tax return paperwork.
  5. Showcase Extra Income: If the borrower is the sole proprietor of the business, they may provide additional evidence of income for self-employed documents. Rent from a home, revenue from other enterprises, money from parents or partners, etc., are examples of additional proof of income.

You may also like: Top 10 Non-Banking Financial Companies in India 2024


Getting a personal loan for self-employed individuals without ITR documents is not as difficult as it seems. There are several banks and NBFCs available in the industry that can help you get such a type of personal loan without much fuss. All you need to do is search for lenders that can help you get a personal loan even if you don’t have income tax returns to submit.


Q. I am a salaried person. Can I get a personal loan without ITR documents?

- Yes, you can. Many lenders are operating in the market that are ready to provide personal loans to salaried individuals without asking for income tax returns.

Q. What is the minimum CIBIL score needed to get a personal loan without income tax return submission?

- Most lenders easily give personal loans to people with a CIBIL score of 750 and above.

Q. How long does it take to get a personal loan?

- Due to the rapid advancements in technology and increased competitiveness, it doesn’t take more than a few hours to get the loan amount in your bank account.



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Author: Abhik Das

Abhik Das is a versatile content writer with over 5 years of experience crafting engaging and informative content across diverse industries. His expertise spans the fields of ed-tech, pharmaceuticals, organic food, travel, sports, and finance.

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