Is it mandatory to file an ITR before availing a home loan in India? | India is blooming

Does a home loan in India involve the need to file an ITR?

It takes a considerable investment to build or buy a house. Whether it is a rented apartment or a freestanding villa, the purchase amount could run into the thousands or even millions of dollars. It’s not an amount that people generally manage to save; for most of us, an instant home purchase is not an option.

This is where you need to apply for a home loan. A home loan is the most feasible option as it provides you with the necessary funds while giving you a long tenure to repay the amount. You can now apply for a home loan online and get an instant e-sanction.

How to get a mortgage in India?

To get your home loan application approved, you must prove your eligibility. For this, different providers have their own home loan eligibility calculator where you can check how much home loan you can take. But in any case, you will be asked to submit the following documents.

Note that filing an ITR is essential if you are applying for a home loan in India.

Why is ITR required for a home loan?

The income tax return or ITR recognizes the return of your taxes that you have filed with the income tax department for a particular financial year. Therefore, while To apply for a home loan online, ITR is one of the most crucial documents required if you are planning or doing any other business transactions.

Here are some reasons why you should file your ITR before applying for a home loan in India.

  • ITR is an essential document by which your lender can assess whether you qualify for the loan. Additionally, most providers require an ITR for the previous three years (or more) to process your loan application.

  • If you haven’t filed your RTI or paid your taxes, no seller will be willing to accept your mortgage application. Non-payment of taxes shows that you are financially unstable.

  • Make sure your ITR reflects stable income levels over the past three years. It’s best if they show a steady increase, as this will assure the lender that you have a stable income and can repay your EMIs on time.

  • Another main document is a net worth statement, for which you need to provide your ITR details. You will not be able to apply for the loan without these financial documents.

  • If you are a salaried employee or own a commercial business, your supplier would like to see verified finances to process your request. To have your documents audited, you must have filed an ITR and paid your taxes on time.


Many factors, including your ITR record, are considered for a home loan. Only in exceptional cases do lenders approve home loans without requiring RTI. Therefore, you must submit the ITR requirements to your lender. Finally, don’t forget to check the home loan eligibility calculator of the particular provider you will approach for the loan.

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