5 ways to get a Loan Against Property without Income Proof

A loan against property is a mortgage loan that stands out among the different finance solutions in the market by offering high-value funding at an economical rate of interest. Moreover, you can use the loan towards any end and to obtain financing, you can pledge a residential or commercial property you own. 

Since the loan comes under the secured loan umbrella, the eligibility criteria are not that stringent but nevertheless, since it is a large loan, you are required to submit certain loan against property documents. As you may expect, the list includes proof of identity and income and property papers.

However, you also need to produce documentation that serves as a proof of income. While this may be surprising, lenders need do this to gauge your repayment capability and how it will change over the period of the tenor. If furnishing proofs of income, for instance, salary slips and Income Tax Returns is difficult, you may be able to tactfully obtain financing by employing certain measures.

Here are 5 ways through which you can enhance your chances of getting a loan against property without income proof.

Talk to your relationship manager

If you hold a savings bank account, you can speak to the relationship manager assigned to you to explore the possibility of obtaining a loan against property in the absence of a tangible proof of income. The idea here is that your relationship manager has a bird’s eye view of your finances, in terms of your bank account, as well as an understanding of how far the institution can bend in terms of lending. The scope of what can be done won’t be apparent when you view eligibility criteria online; however, upon discussing, you will know what can be done to get loan approval. Also, it’s best that you meet with your relationship manager in person rather than talking over a call.

Specify your sources of income to your lender

At the time of property evaluation, it is advisable that you explain to your lender all the sources of your income. This is especially true if you are a freelancer or run a business. The fact is that documentation is one way of proving your income and alternate means can work to your benefit as well. The information you provide helps your lender estimate your annual income and assess your repayment capability. Based on this, the loan amount, tenor, and interest rate will be set. Bear in mind that in the absence of a loan against property documents, the final decision lies with your lender and being transparent increases trust and hence, your chances of approval.

Maintain funds in your savings account

Lenders inspect all details pertaining to income before approving your loan request. This includes all your bank accounts as these give lender’s a glimpse into your financial habits. Lenders will be wary of applicants who don’t maintain funds in savings accounts and vice versa. So, in the run up to applying for this high-value loan, ensure that you have enough in your account.

Apply with a creditworthy co-applicant

When you need funds quickly, you can consider getting a creditworthy individual as a co-applicant in your application for a loan against property. This person may be your parent, spouse, sibling or friend. The idea here is that creditworthy persons have proof of a steady flow of income and possess good credit scores. So, with two people backing the loan and the co-applicant’s credentials tipping the scales in your favour, your lender would be more comfortable with giving your application the green signal.

Settle for a lower loan amount

Another way to improve your chances of approval is to apply for a lower loan amount. In effect, it means applying for less than what your property can fetch you. A smaller principal translates to easier EMIs and this can assuage your lender’s fears. Similarly, in terms of the maximum tenure, loan against property lenders often let you repay over a period of 20 years. However, you can offer to apply for less and repay sooner, should your lender consider that as a winning combination.

You can improve your chances of getting a loan against property without income proof by putting into practice these 5 tips. However, you need to bear in mind that it may take longer to get financing without the necessary documents, and you may have to compromise on the loan particulars and structure. So, going ahead, make every effort to file ITR and keep all income-related paperwork at hand and in order.

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