One common business challenge, especially among first-time entrepreneurs, is the unavailability of capital to run the daily operations. Thankfully, a business loan can help entrepreneurs with their financial requirements.
To provide a loan, lending institutions typically ask for verification documents including KYC documents, income proof, bank statements, etc. A very important document, especially for small business owners is the Income Tax Returns or the ITR .
Can you avail a business loan without ITR ? Read on to know more.
First, let us see the basic eligibility criteria to get a business loan.
Lenders ask for the following verification documents for business loan applicants –
A borrower may try one or more of the below steps to improve the chances of a business loan approval without ITR –
1. A Healthy CIBIL Score
Lenders look for a good CIBIL score even if you are armed with your ITRs. Do ensure that your CIBIL score is at least 750 before applying for an unsecured business loan.
2. Unofficial Lenders
A few lenders may agree to provide a business loan without ITR. However, do note that their policies and the terms of such loans may be very different from that of conventional lenders /business loans.
Please also note that SMFG India Credit requires all business loan applicants to provide ITR among other required documents. Applicants without ITR will be considered ineligible.
3. Government Schemes
First-time entrepreneurs and budding business owners can avail a host of loan schemes introduced by the Indian government. These include:
4. Personal Loans
If you are a small business owner and do not have ITR for your business entity, you can try to take a personal loan for self employed instead. Do note that in order to be eligible for this loan, you will need to provide the required documentation and match the eligibility criteria as per the lender’s policy for self-employed applicants.
If a close family member of the borrower is a professional with valid income proof, they are eligible to become co-applicants. This will increase the chances of the loan application being approved.
If you are looking for a business loan and your profile and available documents match the list mentioned above, visit your nearest SMFG India Credit branch or apply online on our website today. Using our business loan EMI calculator, you can select a tenure that best suits your requirements.
*Terms and conditions apply. Please note that this article is for your information only, and ITR is one of the mandatory documents to apply for a business loan with SMFG India Credit. Loans at the discretion of SMFG India Credit Co. Ltd. (Formerly Fullerton India Credit Co. Ltd.)