How to Get a Business Loan without ITR?

In today’s financial markets, it is possible to get a business loan without Income Tax Returns, as first-time business owners might not maintain enough business experience to file an ITR and it does not mean that they are not eligible to get a business loan. 

There are various NBFCs (Non-Banking Financial Companies), MFIs (Micro Finance Institutions), and Private and Public Sector Banks that provide business loans at an attractive interest rate with longer repayment tenure. 

However, applicants who want to get a business loan at the lowest interest rate would need to file ITR to fulfill business-related financial requirements. 

What is an ITR? 

An Income Tax Return is a document that includes the information about total income and tax paid to the Income tax department. 

 It serves as proof of income for the applicant and is used by the banks to assess the amount of money that they can give to the borrowers. 

Entities that are eligible for a business loan without Income Tax Return 

• Partnership 
• Companies 
• Trust 
• Cooperative societies 
• Individuals 
• LLP 
• Sole proprietorships 
• NGO 

Also read: - Difference Between Secured Loan vs Unsecured Loans

Business loan interest rates  

HDFC Bank Business loan 

Terms and Conditions: - 

• The repayment period is from 12 to 36 months. 
• 18 to 21% interest should be charged by the bank per annum. 
• ITR Documents should not be required. 
• The business location and the residence of the borrower must be owned in the same city. 
• The business continuation should be a minimum of 3 years. 
• Eligible entities – Manufacturers, Traders, and Service businesses. 

TATA Capital – Without Income Tax Return 

Terms and Conditions: - 

• The repayment period is from 12 to 36 months. 
• 19% to 22% interest should be charged by the bank per annum. 
• ITR Documents should not be required. 
• The borrower must own business property or residence. 
• A minimum of 3 years of business vintage should be required. 
• Eligible entities – Manufacturers, Services, and Trading businesses 

Lendingkart – business loan without any return 

Terms and Conditions: - 

• The repayment tenure is between 1 to 36 months. 
• 1.5% to 2% interest should be charged by the bank per month. 
• ITR Documents should not be required if you have a strong bank statement. 
• A minimum of 6 months of business vintage should be required. 
• The nature of business should be Trading, Manufacturing, and Service. 
• Bank statement of current account or overdraft account. 
• Give loan on the office of the applicant or rented house. 

IDFC First Bank – ITR Free  

Terms and Conditions: - 

• 19% to 24% interest should be charged by the bank per annum. 
• The repayment tenure is between 12 to 48 months. 
• ITR Documents should not be required if you have a strong bank statement. 
• Do not sanction service businesses. 
• The business location and the residence of the borrower must be owned in the same city. 
• Give loans to 1-day old businesses. 

Bajaj Finserv 

Terms and Conditions: - 

• 19% to 25% interest should be charged by the bank per annum. 
• The repayment tenure is between 12 to 48 months. 
• ITR Documents should not be required if you have a strong bank statement. 
• A minimum of 3 years of business vintage should be required. 
• The borrower must be in the business of Trading, Manufacturing, or Service. 
• The business location and the residence of the borrower must be owned in the same city. 

Documents required to get a business loan without ITR 

• For identity proof: - Driving license, Voter ID Card, Aadhar Card, Passport. 
• For residential proof: - Voter ID Card, electricity bill, rent agreement, driving license, passport, bank statement, etc. 
• Duly filled out the application form. 
• 2 passport-sized photographs. 
• Adress and business existence proof. 
• PAN Card of company, partnership, or individual (if applicable) 
• Documents of A business plan. 
• Certificates of shops and establishments 
• Rent agreement 
• Bank statement of current account 
• Memorandum of Association and Partnership deed. 
• Incorporation certificate of the company. 

Eligibility criteria of a business loan without Income Tax Return 

Eligibility criteria for business loans depend on numerous factors like age criteria, repayment history, business turnover, etc. 

• Eligible entities such as Manufacturers, Individuals, Sole proprietorships, Traders, NGOs, Retailers, Companies, Limited Liability Partnerships (LLPs), Co-operative societies, Trusts, etc., are eligible to get a business loan without ITR.

• The minimum age of the borrower at the time of loan application is 18 years, and the maximum age of the borrower at the time of loan maturity is 65 years of age. 

• First-time business owners, start-up enterprises, and self-employed professionals are also eligible for this loan. 

• CIBIL Score must be 750 or above. 

• Business turnover should be defined by lenders, which differs from bank to bank. 

• The minimum loan amount should be Rs. 1 lakh and the maximum is Rs. 2 crores, depending on the applicant’s profile and business requirements. 

• There is no need for collateral (excluding bill discounting, letter of credit, equipment finance, etc.). 

Things to be kept in mind while applying for a business loan without ITR 

• The interest rate will be higher. 
• The Strong bank statement will be required. 
• The tenure to pay back the amount is shorter. 

Also read: - Stand up India Scheme