Three Tips For Getting A Loan Against Property Without Income Proof

Three Tips For Getting A Loan Against Property Without Income Proof

Anyone can face an emergency that requires substantial funds. There could be requirements and obligations to meet. If you need emergency cash, you should use the market value of any property you own to apply for a loan against the property. 

A loan against property (LAP) is a mortgage loan secured by putting up property as collateral. The loan amount can be used to meet various financial objectives that require lump-sum spending.

To qualify for the loan, you must meet the loan against property eligibility requirements, one of which is proof of income. Most lending institutions will not approve a loan against property without proof of income. However, you can obtain approval without the required proof if you understand the procedures. This article explains how to obtain a loan against a property without providing proof of income.

About Loan Against Property(LAP)

You can obtain a loan against property, which is a secured loan, by using your property as collateral. The loan against property interest rate is determined by the property’s value, your occupation, and your ability to repay the loan; the bigger the loan amount, the higher the interest rate.

The market value of the property is evaluated before the loan is approved. If it is determined that the title deeds are free of any legal encumbrances and are clear, the loan is approved as a percentage of the property’s assessed market value.

Income proof is necessary to verify the borrower’s capacity to repay the loan. Lacking a reliable source of income can make it difficult to get a loan. Follow the article to learn more about it.

Tips for obtaining a loan against property without providing proof of income

Unfortunately, even if you submit your property documents as collateral, most lending institutions will still request proof of your income to ensure you can repay them on time. However, these suggestions might be useful if you are unemployed and cannot provide income proof. Before applying, you can use one of the many online calculators to check your loan eligibility concerning your property.

Tip 1: Give your officer a clear description of your income.

A representative will inspect the property before the loan is approved or denied. If you own a business or plan to pledge a commercial property at this time, you must explain your income to the appropriate officer. Also, inform the officer that you lack income proof. When calculating your annual income and repayment capacity, the officer will consider all the information you provide.

Tip 2: Select a lower loan-to-value or LTV.

The loan to value (LTV) represents the percentage of the loan that the lending institution will sanction. For instance, if the LTV is 90%, the borrower must pay the remaining 10% while the lender funds the remaining 90%. If you do not have income proof, try requesting a lower LTV. But remember that if you choose a lower LTV, you will have to pay the difference out of your pocket. Lenders can approve your loan application without requiring income proof if you pay high down payments and choose a low loan-to-value ratio.

Tip 3: Put peer-to-peer lending on your list of options.

Nowadays, newer financing options are available in the age of digitization and consumerism, such as crowdfunding and peer-to-peer funding, in which a group of people raises funds for a common goal. Such platforms provide loans faster and with less emphasis on income documentation. However, it would help if you were wary of the terms and other hidden fees imposed by such platforms.

The necessary documents required to avail a loan against property without income proof

You can obtain a loan against property without providing proof of income with the following documents:

  • Signed application form
  • Identity proof
  • Address proof
  • Age proof
  • Proof of self-employment business existence
  • Passport size photographs
  • Processing fee cheque
  • Bank statement (back to 6 months)


The loan against property interest rate is lower than others. But if you are considering availing of it without income proof, you must follow the above-given tips. Obtaining a loan against property without proof of income can be challenging. It takes a lot of explanation, persuasion, and patience. The loan industry is expanding, and they are now available to all types of customers. 

Researching and comparing various lending institutions that offer loans against property online can help you get a better deal. Before applying for a loan, check your loan against property eligibility. You will be able to negotiate more effectively this way.

Also Read: 6 Mistakes to Avoid While Taking a Loan Against Property

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