Denied a loan for missing ITR? Here are 8 options to explore

Offer alternative income proofs
In the absence of an ITR, lenders usually accept other alternatives like salary slips, bank statements, rent receipts, or utility bills to gauge financial stability. Self-employed individuals can share GST certificates, turnover records, or invoices to prove income.

Apply for a personal loan
Personal loans don’t need collateral, so if you have a good credit score and proof of steady income in your bank account, you may still get approved without an ITR. Some banks also offer pre-approved loans to existing customers, so check if you’re eligible.

Apply for a smaller loan
If documentation is a hurdle, consider applying for a smaller loan amount. Lenders are more likely to approve lower-value loans with minimal paperwork, as the associated risk is lower. These are typically processed faster and can be repaid more easily, making them a practical stopgap solution.

Add a co-applicant
Applying jointly with a co-applicant who has a steady income and valid ITR can significantly improve your chances. Lenders consider the combined income of both applicants, improving your loan eligibility and access to a larger amount. A co-applicant also helps present a stronger repayment profile, which is particularly useful for self-employed or non-salaried applicants.

Leverage existing banking relationships
If you’ve had a long-standing relationship with your bank, reach out to your relationship manager. Banks are often more accommodating with known customers who maintain a healthy account. A strong credit history and consistent transactions in your account can help offset the absence of an ITR.

Explore gold loans
Gold loans are among the easiest secured loan options and do not always require an ITR, especially for smaller amounts. Lenders evaluate the purity and value of your gold and offer a loan based on that. They may ask for basic KYC documents and proof of address, but the process is generally quick and flexible. For higher loan amounts, however, documentation requirements may be more stringent.

Consider special lending schemes
Some lenders offer tailored schemes for specific borrower profiles, like self-employed individuals or gig workers who may not always file ITRs. Check with banks or NBFCs about such schemes, especially if you can provide stable income proof through bank transactions or alternate documentation.

Consider P2P lending platforms
Peer-to-peer (P2P) lending platforms connect borrowers directly with lenders and often have more flexible documentation requirements. They may not always insist on an ITR, especially if other proof of repayment capacity is available. However, ensure the platform is RBI-registered and understand the interest rates and risks involved before borrowing.

Not having an ITR doesn’t shut the door on borrowing. With the right documents, a good credit score, and a steady income trail, lenders may still consider your application. Explore alternatives smartly and be aware of your options.