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Personal Loan Without ITR – What Are The Options?


by Mahindra Finance


April 18, 2024


4 mins read

During urgent financial need, a personal loan can be a lifesaver. However, getting a personal loan without an Income Tax Return (ITR) or other critical documents can be challenging. Many lenders require ITR as proof of income for self-employed individuals. But fret not! This article explores the steps to secure a personal loan without ITR.

Secured vs unsecured personal loan criteria

When applying for a personal loan, it's essential to understand the difference between secured and unsecured loans. While personal loans are typically unsecured, meaning no collateral is required, self-employed individuals seeking a loan without ITR may opt for a secured loan.

By offering security against the loan, such as property or fixed deposits (FDs), banks may waive the requirement of submitting an ITR. The maximum loan amount will be calculated based on the Loan-to-Value (LTV) ratio. For example, if you offer security worth Rs 5 lakhs and the bank has an 80% LTV ratio, you can avail of a maximum loan of Rs 4 lakhs.

Determining eligibility for a personal loan without ITR

Obtaining a personal loan without ITR requires meeting certain eligibility criteria. A good credit score plays an essential role in securing such loans. Banks consider a CIBIL score of 750 and above as ideal for any loan application, including personal loans. 

In addition to the credit score, your repayment history also matters.

Alternative documentation for self-employed individuals

If you're self-employed without an ITR certificate you can still apply for a personal loan. Some lenders offer personal loans for self-employed individuals without requiring an ITR. However, you may need to provide alternate documents or criteria to support your loan application such as:

  • Supplementary income 
  • Getting a guarantor
  • Pledging collateral
  • Having a rapport with the bank, etc.

Benefits and considerations

Now that we've explored different options for obtaining a personal loan without ITR, let's consider some benefits and important factors to keep in mind:


  1. Quick access to funds: Personal loans without ITR allow you to access funds quickly, ensuring you can meet your financial needs without delay.
  2. Flexibility in loan utilisation: Unlike certain loans that are specific to a particular purpose, personal loans provide flexibility in how you can use the funds. Whether it's for medical expenses or home renovations, you have the freedom to decide.
  3.  Improve credit score: Timely repayment of personal loans can positively impact your credit score, making it easier to avail of credit in the future.


  1. Higher interest rates: Personal loan interest rates without ITR may be higher than traditional loans due to the perceived higher risk for lenders.
  2. Loan amount limitations: Without income proof, lenders may impose limitations on the loan amount based on collateral value or other factors.
  3. Repayment capacity: Before availing of a personal loan, assess your repayment capacity and ensure that you can comfortably manage the monthly instalments.


Obtaining a personal loan without ITR is possible through various options such as secured loans, alternative documentation, or having a good relationship with the lender. Consider the benefits and limitations of each option before making a decision.If you're looking for a reliable lender offering a personal loan without income proof, Mahindra Finance is the ideal choice. With a customer-centric approach and competitive personal loan interest rates, Mahindra Finance ensures a hassle-free borrowing experience. Explore the multiple loan offerings and apply now to fulfil your financial needs.


Q: Can I get a personal loan without income proof?

A: Yes, some lenders offer personal loans without income proof. You can provide alternative documents such as supplementary income proof or collateral to secure the loan.

Q: What is the personal loan interest rate without ITR?

A: The personal loan interest rate without ITR may vary depending on the lender and your creditworthiness.

Q: Are there any other options to secure a personal loan without ITR?

A: Yes, apart from alternative documentation, you can consider pledging collateral or including a guarantor while applying for a personal loan without ITR.

Q. Can I get a personal loan if I am unemployed?

A. People without a stable source of income but a high credit score can also apply for a secured 'personal loan for the unemployed'. 

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