Whenever planning for a business loan one the first thing the lenders usually ask for is your income tax return (ITR). However if you have just started a new business or you have not filed your ITRs till now can you still get a loan?
Briefly, the answer is: Yes, you can get a business loan without ITR but there will be certain conditions.
In this article we will talk about the various ways to get Business Loan Without ITR in 2025 , which are the best lenders, what other documents to provide, and some useful tips to get approved faster.
What is ITR and Why Do Lenders Ask for It?
ITR (Income Tax Return) is the document you submit to the Income Tax Departments showing you total annual income and the tax liability. For the lender it is a proof of income that helps them to estimate your repayment capacity.
Usually, it is common for most traditional lenders to ask for 1–3 years of ITRs along with a business loan application. But if you have just started your business, or you are a very small business (micro-business), or a cash-based business, you probably won’t have them yet.
Is Business Loan Without ITR in 2025 Possible?
Multiple NBFCs (Non-Banking Financial Companies), fintech, and several private banks may give business loans without ITR, especially to small businesses or startups.
However, such lenders can require some other kinds of income verification and also they can charge you higher interest rates or give you smaller loans so they can cover their potential loss.
Who Can Get a Business Loan Without ITR?
The basic eligible criteria for the approval of the loan are:
- A new business owner or startup with no ITR history
- Operating a seasonal or cash-dependent business (such as local shops, vendors)
- An individual who are self-employed or freelancers without formal income records
- A micro or small business with good cash flow but with limited documents
What Documents Are Needed If ITR is Not Available?
If you are not having the ITR then these are the alternative documents lenders can ask for:
| Document Type | Examples |
| Bank Statements | Last 6–12 months showing consistent inflow |
| Business Registration Proof | GST certificate, trade license, shop act, etc. |
| KYC Documents | Aadhaar, PAN, Passport, Voter ID, etc. |
| Financial Documents | Balance sheet, profit & loss statement |
| Proof of Income | Sales invoices, utility bills, rent receipts |
| Collateral (Optional) | Property, gold, fixed deposits (if secured) |
Top Lending Institutions Offering Business Loan Without ITR
1. Lendingkart:
- Online process, rapid approval
- No ITR required for loans up to Rs. 10 lakh (based on the bank statement analysis)
2. Indifi Retailers
- Retails, wholesalers, and service businesses can take loan
- ITR is not required, if the amount is small
3. FlexiLoans
- Offers unsecured business loans without ITR
- It asks for GST data and requires a solid bank history
4. Paytm, Razorpay Capital, NeoGrowth
Loans will be given only with the digital transaction history, and not ITR
Note: Availability may differ in your particular area and credit profile.
Pros and Cons of Business Loans Without ITR
Advantages
- Accessible to new entrepreneurs and small enterprises
- Quick sanction and minimum paper work
- Perfect for businesses with digital payments or bank transaction history
- You can also apply without waiting for the tax season
Disadvantages
- Higher interest rates (due to perceived risk)
- Loans with lower amounts than those with full documentation.
- Number of lenders that are offering such loans is also low
- Possible requirement of collateral or a guarantor.
How to Improve Your Chances of Getting Approved
- Carry out strong bank transactions – deposits made regularly are a sign of the stability of the business and give a good impression
- Register your business with the government (for instance, GST, MSME Udyam, etc.)
- Increase your credit score – aim for 700+
- Establish a good online presence (website, Google listing, social proof)
- Apply with NBFCs or fintechs that are open to the informal sector.
Conclusion
Getting a business loan without ITR is totally possible with having the sufficient options available, especially with the rise of fintech lenders who understand the needs of small and emerging businesses.
Traditional banks may hesitate to provide you a loan but NBFCs and the Digital platforms provide the flexible options, provided you can show the business stability through other documents.
Here are some of the key points you should remember from this article:
| Key Point | Details |
| Is ITR mandatory for business loan? | Not always, especially with fintech lenders |
| Alternatives to ITR | Bank statements, invoices, GST, KYC, etc. |
| Loan amount | Generally ₹50,000 to ₹10 lakh without ITR |
| Best for | New businesses, small vendors, informal sector |
| Tip | Keep digital records and apply with NBFCs |
Frequently Asked Questions (FAQs)
Q1. Can I get a business loan without ITR if I have a good credit score ?
Yes, a high credit score can help you compensate for the lack of ITR.
Q2. Is GST registration necessary for the business loan?
It is not mandatory but having the one can improve the credibility and loan chances
Q3. What is the minimum turnover required for a business loan?
It varies from lender to lender But usually many of them require ₹2-5 lakh per month in bank credits.
Q4. Do banks offer loans without ITR?
Most of the banks require the ITR for the business loans. But some private banks may provide small loans.