ITR requirements for personal loans: 1, 2 or 3 years? Know what banks want | Mint

Indian lenders applying for a personal loan should typically submit a proof of income. Salary applicants usually offer recent salary strips and Form 16 (annual salary certificate), while independent lenders show tax documents. In practice, the salary customers generally comply with the criteria of the banks with the latest payouts/Form 16, while for independent applicants are expected to provide for several years of income tax returns (ITRS). There is still no such fixed unanimous rule by which loan applicants certainly have to provide a certain number of ITR submits to each bank to be eligible for a specific loan product. Important lenders have regulations according to the loan product. Large lenders on the other hand have clear guidelines and regulations according to the specific loan products used, and the type of applicant that applies, that is, if the individual is independent or salary: For example, SBI asks for the latest ITR (one year) or Form 16, while ICICI, HDFC and Kotak Mahindra Banks generally expected for the previous two -year applicants. ITR requirements for salaries and independent applicants banks need revenue resistant to check the repayment capacity. For salaries salary certificates and form 16 are usually sufficient. SBI’s policy explicitly mentions the latest ITR/Form 16 (which covers one financial year) as compulsory documentation, but renounces it if the borrower is in a zero tax sheet. By contrast, independent individuals must document earnings with ITRs for stability. In most cases, banks ask for at least two years of ITRs (along with audited accounts or Form 16, where ever applicable) to assess the business income, financial stability and continuity of the loan applicant. Salary -applicants: For all salaries, recent pay slips or salary slips usually work. ITRs may be expected to be submitted, but it is optional if your income is tax -free. Independent applicants: Banks use ITRs to assess and understand your income history, credit history, creditworthiness, future repayment potential and business health. Most lenders prefer at least two years of filing. Note: In their own interest, the applicants of the ambition loan are advised to refer to the official website of their respective lending institution for full details on the documents required for each loan product. Bank-Wise ITR Criteria Bank Salaried Applicants Self-Employed Applicants State Bank of India Latest ITR or Form 16 (Waibered for Nil-Tax Slab) Latest ITR or Form 16 (One Year) ICICI Bank Salary Slips and/OR Form 16 ITRS For Last 2 Financial Years Hdfc Bank Latest Salary Last 2 Years Kotak Bank Salary Slips for Last 3 Months ITRS for Last 2 Financial Years Axis Bank Last 3 Months ‘Passaps, Form 16 Last 2 Years ITR Indusind Bank Last 3 Months’ Payout Skips, Form 16 Last 2 Year ITR Note: The Table with the Required Documents is illustrated, for the Updated Official website of your respective money shooter and always look at the latest bank rules. Therefore, although individuals who rely mainly on salary certificates, independent borrowers must be ready with two years ITR documents for most top banks. Meeting these requirements helps ensure smooth loan processing. Applicants are encouraged to maintain accurate tax returns and use digital loan sports in a responsible way. Borrow responsibly and consider using online instruments for quick personal loan applications, but always look at each bank’s updated document checklist before applying. Disclaimer: Mint has a fusion with fintechs to provide credit; You must share your information if you apply. These bonds do not affect our editorial content. This article only intends to educate and distribute awareness about credit needs such as loans, credit cards and credit values. Mint does not promote or encourage credit because it comes with a set of risks such as high interest rates, hidden costs, etc. We advise investors to discuss with certified experts before taking credit.