How to Get a Business Loan Without ITR in India?

Quick Funding Solutions for Entrepreneurs Without Income Tax Returns

Authored By FlexiLoans | Date: 16/10/2025

• Quick Summary
• What: Ways to secure a business loan without filing an ITR.
• Why: Many MSMEs, startups, and new entrepreneurs lack ITR records but still need capital.
• Who: Small business owners, first-time entrepreneurs, MSMEs, and startups without formal income proof.
• How: Approach NBFCs, MFIs, or government schemes with alternative documentation and strong credit scores.
• Use Case: A first-time entrepreneur in retail secures ₹5 lakh from an NBFC using a solid business plan and bank statements instead of ITR.

Introduction

Do you run a small business and want to know how to get a business loan without ITR and income proof? Most public and private sector banks do not offer such loans. However, some banks, NBFCs, and microfinance institutions can provide business loans without demanding ITR or formal income proof.

If you are a startup founder, run a business under the MSME category, or are an entrepreneur without ITR, you can approach an NBFC or MFI for funding. This guide explains how to secure a business loan without an ITR at competitive rates, including eligibility criteria, required documents, and available schemes.

Who can get a business loan without ITR?

If you are one of the following, you can get a business loan without ITR:

1. Individuals, retailers, companies, manufacturers, or
2. Limited liability partnership (LLP) firm, partnership firm, a co-operative society, or
3. Start-up, budding entrepreneur, or a first-time business.

Eligibility criteria for getting a business loan without ITR

To get a business loan without ITR, you must fulfil the following eligibility criteria:

1. At the time of loan maturity, your age should be between 18 and 65.
2. The loan amount must be between Rs 10,000 to Rs 30 lakh.
3. Your credit score must be 700 or above.
4. The lender shall define the requisite turnover to be eligible for the loan.
5. The lender should decide on the collateral required, if any, for furnishing the loan.

What are the documents needed to get a business loan without ITR?

You will be required to submit the following documents to the respective financial institutions to get a business loan without ITR:

1. A duly filled loan application form.
2. Passport size photographs.
3. Proposed business plan or model.
4. Identity proof (acceptable identity proofs are voter identity card, Aadhar card, passport, driving licence, etc.).
5. Permanent Account Number (PAN) of the applicant company, partner or individual.
6. Proof of residence (acceptable proof of residence are passport, driving licence, Aadhar card, voter identity card, ration card, electricity bill, rent or lease agreement, etc.).
7. Company’s certificate of incorporation.
8. Memorandum of association (MOA) of the company or the partnership deed of a partnership firm or LLP.
9. Establishment certificate of the business.
10. Rent agreement (if applicable).
11. The current account statement of the company or business entity.

Available options to get a business loan without ITR

Several financial institutions can easily help you get business loans without demanding an ITR or proof of income. You can even explore several business loan schemes initiated by the Government of India to aid start-ups and MSMEs.

Some of the available schemes are:

1. Pradhan Mantri Mudra Yojana.
2. Prime Minister Employment Generation Programme.
3. PSB Loans in 59 minutes.
4. National Small Industries Corporation.
5. Stand up India.
6. SIDBI Make In India Soft Loan Funds for MSMEs.

How to improve the chances of your loan approval?

If you are applying for a business loan without ITR, following these steps can significantly improve your approval rate and help secure better loan terms:

• Maintain a High CIBIL Score – Aim for a credit score of 700 or above. A score closer to 900 greatly increases your chances of approval and may also help you get lower interest rates.
• Avoid Unauthorised Lenders – Always approach registered NBFCs or banks. This ensures compliance with RBI norms and protects you from predatory lending practices.
• Apply with a Co-Applicant – Having a co-applicant who can provide valid income proof strengthens your application and improves lender confidence.
• Provide Collateral for Better Terms – Offering assets such as immovable property, a letter of credit, bill discounting, or pledged movable property can increase approval odds and may help negotiate better loan terms.
• Consider a Personal Loan as an Alternative – If your business loan application is delayed or rejected, a personal loan can be a quicker funding option that doesn’t require an ITR.

Conclusion

If you are an MSME, a start-up, or a new entrepreneur who does not have a lot of financial backup for their businesses, getting a MSME loan can be the best way to boost your business. However, there are high chances that you may not have an ITR or proof of income to convince the financial institutions about the repayment of loans.

In such cases, getting a business loan without ITR can work wonders for you. Several financial institutions and government schemes are available to new and small businesses to help them grow and develop seamlessly. In such schemes, you do not even have to worry about how much ITR is required for a business loan. You can simply grab the opportunity and get your business loan easily without any hassle.

FAQs: Business Loan Without ITR in India

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