Can I get home loan without filing ITR?

Many major banks and housing finance companies provide housing loans to self-employed and salaried customers whose income is below the taxable limit and mostly cash.

Livemint
First Published24 Aug 2022, 01:26 PM IST
It is possible to get a home loan from banks or housing finance companies despite not having filed an ITR. (Photo: iStock)
It is possible to get a home loan from banks or housing finance companies despite not having filed an ITR. (Photo: iStock)

I have a small business of automobile spare parts. Since my income is below the taxable limit, I do not file any income tax returns and do not maintain any accounting book.

I have never taken any kind of loan from a bank/NBFC before and do not have any loan history. Can I get home loan from a bank and what document process should I follow? Please guide me on how to go about taking a home loan.

-Name withheld on request

Yes, it is possible to get a home loan from banks or housing finance companies despite not having filed an income tax return (ITR) when the income is below taxable limit.

Today, many major banks and housing finance companies such as Axis Bank, HDFC, ICICI Bank, Aditya Birla Housing Finance, Hero Housing Finance, and Piramal Housing Finance provide housing loans to self-employed and salaried customers whose income is below taxable limit and mostly in cash. Most of these banks/HFCs run special programmes under their affordable housing scheme. You will have to approach these banks/HFCs or their sales agent and collect the application form, fill the same, attach required documents such as Aadhar card, residence proof, business proof, photographs, among others, and submit.

These banks have a particular process for assessing your income and loan eligibility by visiting your workplace and looking at your “kuchha khata” books /records of income and expenses that you may be marinating. In case you do not maintain any books then they will assess your income basis your stock, sales, and expense based on their experience of assessing such businesses.

Based on the report filed by these assessors, the bank grant you a loan based on your actual cash income. You will then have to provide a copy of your property papers. The bank will conduct a valuation and title search report and they will give you a date when you get your loan cheque. The bank’s lawyer will go to the property registrar’s office and hand over the home loan cheque to your seller, they will register the property in your name and collect the sale deed and other papers and keep it under their custody till the time your pay back the home loan.

(Query answered by Shrikant Shrivastava , Chief Risk Officer, India Mortgage Guarantee Corp. Please send your views and personal finance queries to mintmoney@livemint.com)

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First Published:24 Aug 2022, 01:26 PM IST
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