When you’re running a business, especially in the early stages or as a self-employed professional, having every document in place—like Income Tax Returns (ITR)—isn’t always possible. But what if you need urgent funding? Can you get a business loan without ITR? The answer is yes, and this guide will show you exactly how.
In this detailed blog, we’ll explain:
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What lenders look for besides ITR
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The types of business loan without ITR options available in India
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Alternative income proof loan documents you can provide
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Real-world examples of who can apply
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How to improve your chances of getting approved
Let’s dive in.
🧾 Why Is ITR Usually Required for Business Loans?
Most banks and NBFCs ask for at least 2-3 years of ITR as proof of income when evaluating your loan application. Why?
Because ITRs:
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Validate your income history
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Help assess your creditworthiness
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Indicate business stability
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Show compliance with tax laws
But if you’re a new entrepreneur, freelancer, or small business owner operating informally, you might not have filed an ITR yet. That’s where alternative income proof loans come in.
💡 Can I Really Get a Business Loan Without ITR in India?
Yes, you can. While ITR is an important document, it’s not the only thing lenders consider.
Today, many NBFCs (Non-Banking Financial Companies), fintech platforms, and even private lenders offer no ITR loans in India, especially for:
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Small traders
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New startups
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Kirana shop owners
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Gig workers
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Freelancers
They use alternative documentation to assess risk, such as:
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Bank statements
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GST returns
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POS (Point of Sale) reports
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Aadhaar-based credit profiles
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Business invoices
🏦 Top Business Loan Without ITR Options in India
Here are some well-known lenders that provide business loans without tax returns or with minimal documentation:
1. Lendingkart
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Offers unsecured business loans up to ₹50 lakhs
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No ITR needed if other documents are solid
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Approval based on bank statements, GST, and business cash flow
2. Indifi
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Focuses on small retailers and service businesses
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Accepts alternative proofs like digital payments, invoices
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Quick online application and approval process
3. Rupeek, FlexiLoans, NeoGrowth
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Designed for new businesses with low documentation
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May consider POS transactions, digital sales, and rental income
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Ideal for businesses with cash flow but no formal financial history
📋 What Documents Can Replace ITR for Business Loans?
If you don’t have an ITR, here’s what lenders may accept:
✅ Alternative Income Proof Loan Documents
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Last 6–12 months’ bank statements
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GST return filings (if applicable)
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Business registration certificate
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Trade license or Udyam Registration
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Sales/purchase invoices
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POS transaction reports
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Utility bills or rent agreements (for address proof)
✅ Additional Documents
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PAN and Aadhaar card
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Passport-sized photograph
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Business continuity proof (minimum 6–12 months of operations)
💡 Pro Tip: Keep your bank account active and show regular business transactions—even small ones. It builds credibility in the absence of ITR.
👨💼 Who Should Consider a Loan Without ITR?
🔹 New Businesses or Startups
Startups in their early days may not have ITRs filed yet. But if you show consistent bank deposits, a good credit score, and a clear business plan, many NBFCs will lend.
🔹 Freelancers and Self-Employed Professionals
Whether you’re a photographer, designer, or tutor, if you earn via online platforms or direct payments, you can apply with bank statements and payment proofs.
🔹 Retailers and Local Shop Owners
Traditional businesses like grocery stores, salons, or medical shops with no ITR but regular cash flow are often eligible for small-ticket loans.
📝 How to Apply for a Business Loan Without ITR
Here’s a step-by-step guide:
1. Choose the Right Lender
Opt for lenders who specialize in low-doc or alternative income proof loans (Lendingkart, Indifi, NeoGrowth, etc.)
2. Prepare Your Documents
Gather:
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Business proof (Udyam, shop license)
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6–12 months’ bank statements
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Aadhaar + PAN
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Any digital payment or invoice records
3. Apply Online
Most NBFCs and fintech lenders offer 100% online application. Fill in details, upload documents, and wait for approval (usually within 24–72 hours).
4. Get Approval and Disbursal
Once approved, money gets disbursed directly to your business bank account—often within 2–5 working days.
📈 How to Improve Approval Chances Without ITR
Even if you’re eligible, getting approved is easier when you do these:
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Maintain a healthy bank balance
Avoid overdrafts or bounced cheques. -
Keep transactions transparent
Avoid large cash deposits. Digital payments build trust. -
Register your business
A Udyam or Shop Act license adds credibility. -
Improve your credit score
A score above 650 boosts approval—even without ITR. -
Offer collateral if possible
A gold loan or secured business loan increases approval odds.
🔁 Real-Life Example
Ravi, a freelance web designer in Pune, didn’t have an ITR but needed ₹2 lakhs to upgrade his equipment. He applied through Lendingkart, submitted 12 months of bank statements showing regular payments from clients, along with his Aadhaar, PAN, and invoice records.
Loan was approved within 3 days, without ITR.
❓ FAQs About Business Loan Without ITR
1. Can I get a loan without tax returns in India?
Yes, many NBFCs and digital lenders in India offer loans without ITR, using alternative documents like bank statements, invoices, and GST returns.
2. What is the maximum loan I can get without ITR?
Loan amounts range from ₹50,000 to ₹10 lakhs or more, depending on your cash flow, business age, and documents.
3. What are ITR exemption loans?
These are business or personal loans offered to applicants who are exempt from filing ITR or haven’t filed due to business stage, using other proofs like digital income or bank activity.
4. Is a loan without ITR available for self-employed people?
Yes. Self-employed professionals like consultants, tutors, designers, and traders can apply using alternative income documents.
5. Can I apply online for a business loan without ITR?
Absolutely. Platforms like Indifi, Lendingkart, and FlexiLoans let you apply completely online and offer quick approvals.
6. Are interest rates higher for no ITR loans?
They might be slightly higher (14–24% p.a.) due to higher risk, but it varies based on your credit profile and lender.
7. Can I get a business loan without ITR and GST?
Yes, some lenders offer loans based on bank statements and POS reports alone. But having at least one of them (ITR or GST) improves your chances.
✅ Conclusion: Business Loans Without ITR Are Possible—If You Know Where to Look
While traditional banks still prefer ITRs, India’s growing fintech and NBFC ecosystem makes it possible to get a business loan without ITR—especially for startups, self-employed professionals, and small traders.
The key is to maintain financial transparency through bank accounts, digital payments, and documented transactions.
So if you’ve been holding back from applying because you don’t have an ITR—don’t worry. Just gather your alternative income proof, pick the right lender, and take that next step in growing your business.
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