Can I get a home loan without depositing an RTI?

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I have a small auto parts business. Since my income is below the taxable limit, I do not file any income tax returns and do not keep any accounting books.

I have never taken a loan from a bank/NBFC before and have no loan history. Can I get a home loan from a bank and what documentation procedure should I follow? Please let me know how to get a home loan.

-Name masked on request

Yes, it is possible to obtain a home loan from banks or housing finance companies without filing an income tax return (ITR) when income is below the taxable limit.

Today, many major banks and housing finance companies such as Axis Bank, HDFC, ICICI Bank, Aditya Birla Housing Finance, Hero Housing Finance and Piramal Housing Finance offer housing loans to self-employed and salaried workers whose income is below the taxable ceiling and mainly in cash. Most of these banks/HFCs run special programs as part of their affordable housing program. You will need to contact these banks/HFCs or their commercial agent and collect the application form, fill it, attach the required documents such as Aadhar card, proof of residence, business proof, photographs, among others, and submit.

These banks have a particular process to assess your income and loan eligibility by going to your place of work and looking at your “kuchha khata” books/records of income and expenses that you might pickle. If you don’t keep any books, they will assess your revenue base, inventory, sales, and expenses based on their experience in valuing such businesses.

Based on the report filed by these experts, the bank grants you a loan based on your actual cash income. You will then need to provide a copy of your property papers. The bank will perform an appraisal and title search report and let you know when you will receive your loan check. The bank’s solicitor will come to the property registrar’s office and deliver the home loan check to your seller, he will register the property in your name and collect the bill of sale and other documents and keep it under his keep until you repay the mortgage.

(Question answered by Shrikant Shrivastava, Chief Risk Officer, India Mortgage Guarantee Corp. Please send your opinions and questions on personal finance to [email protected])

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