Financial institutions will ask borrowers for a proof of income before approving a loan against property. Here are a few steps you can follow to avail a loan against property without income proof.

Lastly, here are a few tips which can help you avail a loan against property without providing income proof –

1. Include a co-applicant

Borrowers can add a co-applicant into the loan agreement. The co-applicant should be a family member with a high credit record. The loan approval chance increases significantly with the addition of a salaried individual.

2. Provide formal explanation regarding the absence of said documents

In addition to stating why you do not possess said documents, provide the income tax return (ITR) report of the last quarter/financial year.

A suitable explanation supported by an appropriate ITR report raises your eligibility of availing the loan.

3. Opting for a low loan to value ratio (LTV)

LTV is the ratio between the mortgage amount and the appraised property value. A lower loan to value ratio reduces the interest and increases your eligibility in the absence of income proofs. Opting for a low LTV also increases your chances of availing the maximum tenure loan against property.

In addition to the above, make sure to provide the following loan against property documents -

• Identity and address proof.
• Previous 6 months’ bank statement.

You can also avail a loan against property without substantial income proof if you maintain a high credit score. Try to pay any existing instalments and credit card bills periodically and store the receipts for future loan negotiations.