How To Apply For Business Loan Without ITR – Documents Required and Eligibility – Comprehensive Guide 2025
Business Loan Without ITR : In India, many small and micro businesses operate in the unorganized or semi-organized sector where regular Income Tax Return (ITR) filings are either delayed or missing. Yet, these businesses require capital to expand, purchase inventory, upgrade equipment, or meet working capital needs. Traditionally, ITR has been one of the key documents for evaluating the financial health of a business for loan approval. However, with the rise of digital lending platforms, fintech NBFCs, and relaxed lending norms in some institutions, applying for a business loan without ITR is now possible—provided the borrower can offer alternative documentation and meet other eligibility requirements.
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This comprehensive guide will walk you through the process of applying for a business loan without ITR in 2025, including who can apply, the documents required, eligibility criteria, top lenders, and best practices to improve approval chances.
Why Is ITR Important for Business Loans?
Income Tax Returns (ITRs) are considered essential by most banks and NBFCs because they provide:
- Proof of consistent income over the years
- Evidence of financial discipline and compliance
- A basis for calculating debt-to-income ratio
- Verification of turnover and profit for business valuation
But what if you haven’t filed your ITR or have only recently started your business?
Can You Get a Business Loan Without ITR?
Yes, many NBFCs (Non-Banking Financial Companies), fintech lenders, and even select banks now offer business loans without ITR for specific profiles. These loans are usually offered based on:
- Alternative documents like bank statements, GST filings, or trade license
- Good cash flow and credit history
- Asset-backed loans or secured lending models
Read more: How to Qualify for a Business Loan in 2025 : Comprehensive Guide
While traditional banks may be hesitant, fintech platforms like Indifi, Lendingkart, FlexiLoans, ZipLoan, NeoGrowth, Oxyzo, and PaySense offer fast and flexible loans without ITR under MSME and small business segments.
Who Can Apply for a Business Loan Without ITR?
The following business profiles are commonly accepted by lenders even without ITR:
- Retail shop owners (Kirana, general stores)
- Traders and wholesalers
- Small manufacturers
- Freelancers and gig economy workers
- Transport and logistics businesses
- Food vendors and small restaurants
- Service providers (plumbers, electricians, tailors)
- New businesses with at least 6–12 months of operations
Eligibility Criteria for Business Loan Without ITR (2025)
Each lender has its own underwriting process, but general eligibility includes:
- Age: 21–60 years
- Business vintage: Minimum 6–12 months of operations
- Monthly turnover: ₹50,000 to ₹2 lakhs (varies by lender)
- Credit score: 650+ preferred, but not always mandatory
- Business type: Proprietorship, partnership, private limited, etc.
- Location: Should fall under the serviceable pin codes of the lender
Documents Required for Business Loan Without ITR
Though ITR is not required, you will need to furnish other documents:
Mandatory KYC Documents
- PAN card (business/proprietor)
- Aadhaar card
- Passport-size photographs
- Address proof (electricity bill, rental agreement)
Business Proof
- GST certificate (if registered)
- Trade license or shop & establishment certificate
- Udyam registration (recommended for MSMEs)
- Business registration or partnership deed
Financial Documents
- Last 6–12 months’ bank statements (business account)
- Purchase/sales invoices
- Receipts and ledger records (for informal businesses)
Optional/Supplementary
- Rent agreement of business premises
- Utility bills in business name
- Digital transaction history (UPI, POS receipts)
Lenders Offering Business Loans Without ITR in India (2025)
1. Lendingkart
- Loan amount: ₹50,000 to ₹2 crore
- No ITR required for loans up to ₹10 lakhs
- Fast digital disbursal
- Minimal documentation
2. FlexiLoans
- Focus on small traders, Kirana shops
- Collateral-free loans
- Only bank statement & KYC needed
3. Indifi
- Loan for retailers, restaurants, travel agents
- Partnered with Paytm, Zomato, Flipkart for seller finance
- Loan based on invoice or platform data
4. NeoGrowth
- Loans against POS machine swipe history
- Focused on retailers with digital transactions
- No ITR if strong sales data is available
Government Schemes Supporting ITR-Free Lending
Several government schemes also promote loans to small businesses with minimal documentation:
a) MUDRA Loans (under PMMY)
- Offered to micro and small enterprises
- Loans up to ₹10 lakh
- No collateral, limited documents
- ITR not mandatory for loans under ₹5 lakh
b) Stand-Up India Scheme
- Supports SC/ST and women entrepreneurs
- Loans starting from ₹10 lakh
- Alternative to ITR: Business plan, bank statement, KYC
c) SIDBI’s Loan Schemes
- Target MSMEs without formal documentation
- Partnered with fintechs for low-doc lending
How to Improve Loan Approval Chances Without ITR
1. Maintain Strong Bank Statement History
Lenders prefer businesses with consistent deposits and minimal cheque bounces.
2. Adopt Digital Payments
Use UPI, POS, and digital invoices to create a transaction history.
3. Get Udyam Registration
This makes you a formal MSME and adds credibility.
4. Apply for Smaller Amounts Initially
Start with smaller ticket loans and increase based on repayment behavior.
5. Consider Co-Applicant or Guarantor
If available, add a financially strong co-applicant to reduce risk perception.
6. Use a Loan Aggregator Platform
Sites like Paisabazaar, BankBazaar, and IndiaLends offer options based on your document profile.
Pros and Cons of Business Loans Without ITR
Pros:
- Accessible to informal businesses
- Faster approval from fintech lenders
- Minimal paperwork required
- Works for businesses with low or no credit score
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Cons:
- Higher interest rates (15%–28% p.a.)
- Lower loan amounts (₹50,000–₹5 lakhs typically)
- May need digital transaction proof
- Shorter repayment tenures
Interest Rates and Repayment Terms
| Lender | Interest Rate | Loan Tenure | Processing Fee |
|---|---|---|---|
| Lendingkart | 15–24% p.a. | 6 to 36 months | 2–3% of loan amount |
| FlexiLoans | 18–28% p.a. | 12 to 36 months | 2% onwards |
| NeoGrowth | 16–22% p.a. | 3 to 24 months | Variable |
| ZipLoan | 18–25% p.a. | 12 to 36 months | ₹5,000–₹10,000 |
| Oxyzo | 14–20% p.a. | 30 to 180 days | Negotiable |
Note: These are indicative figures and may vary.
Step-by-Step Guide to Apply for a Business Loan Without ITR
- Evaluate your funding requirement and loan amount
- Prepare key documents (bank statements, KYC, GST, etc.)
- Choose a suitable lender or fintech platform
- Apply online or via mobile app
- Upload documents and complete KYC
- Wait for approval (usually 24–72 hours)
- Loan disbursal directly to your business account
- Start monthly EMIs or flexible repayment (based on product)
Use Cases of Loans Without ITR
- Buy inventory during peak season
- Repair or purchase new machinery
- Open a new outlet or expand space
- Hire additional staff during festive season
- Launch a new product line
- Pay advance rent or vendor dues
Conclusion: Business Loan Without ITR in India – Final Thoughts
In 2025, the Indian lending ecosystem is evolving to support more informal and small business owners. With fintech lenders simplifying access to funds, getting a business loan without ITR is not just possible—it’s practical. Whether you’re a Kirana store owner, a vendor, or a budding entrepreneur, you now have access to capital without the hurdle of income tax documentation.
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However, ensure that you maintain clean bank records, register your business where possible, and use digital tools to build credibility. Smart borrowing and responsible repayment will help you unlock bigger credit opportunities in the future.
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Loan terms, interest rates, and eligibility vary by lender. Readers are advised to verify all details with the lender directly before applying. The content in this article is based on publicly available data and general industry trends as of 2025. The author is not affiliated with any lender mentioned herein and does not guarantee loan approval. Always consult a certified financial advisor before making borrowing decisions.
