Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Home > Home Loan Without Documents – A Myth, Fraud, Or Reality?

Loan for Home

Home Loan Without Documents – A Myth, Fraud, Or Reality?

Home Loan Without Documents – A Myth, Fraud, Or Reality?

Home loan without documents – is it really possible to get one? Today, you can get a home loan online by filling out a simple application form and uploading a few documents. While lenders accept minimal documentation, they still need some records to verify your background and ability to repay the loan. 

Suppose you need a housing loan but do not have a stable job and regular salary. Can you still apply for a loan without submitting any proof of income to support your application? The answer is yes. You can go for a loan scheme called a no-document housingloan. 

Are you curious to know in which cases lenders give you a home loan without any documents (if they do so at all)? Read this article to learn more. 

When can you apply for no-document housing loans?

You can apply for a no-document loan if you don’t have a regular income or a good credit score. There are two types of loans you can choose from: 

1. No-ratio home loans

When you apply for a no-ratio home loan, you do not have to disclose your income details to your lender. So, they cannot find out your debt-to-income ratio. So, if you do not have a consistent income but have a good credit history, this means there is still hope for you to buy your home and avail a home loan. You can apply for a no-ratio home loan without documents.

2. Unorganised sector home loans 

If you have an unstable income and a poor credit history, you can choose an unorganised sector home loan. However, note that the interest rates for these types of loans can be high. 

How do lenders decide your loan amount?

When you apply for a no document home loan, your lender calculates your total amount by considering the following factors:

  • Your earnings for the last two years. They may estimate these through records other than your income documents. 
  • Your bank statements or income tax returns (ITR)

Things to consider

While this is exciting news, you must bear in mind a few important points to consider. When you take a housing loan without documents, the following conditions apply: 

  1. Higher interest rates: When your lender does not have proof of your income, they cannot judge your repayment ability. They may rely on certain documents like bank statement or ITR but cannot predict a trajectory of inflow of your funds in future. Thus, more risk is involved for the lender, and you will have to pay higher interest rates and a high EMI amount each month to off-set the potential risk. 
  1. Longer approval time: A loan application without documents has a lengthier approval period. However, your lender can issue you a sanction letter quickly. In this context, the sanction letter does not imply loan disbursal. It simply means that you are eligible for a home loan from the lender. While many lenders issue the sanction letter based on the information you provide at the time of application, they may require a detailed verification later. 

In conclusion 

While no-document housing loans are not fraudulent schemes, you should carefully consider the implications involved before applying. Go through the loan terms and decide if it is suitable for you. But, if you do not need a housing loan immediately, it is better to wait till you have a regular source of income rather than bear the burden of high EMI payments.

If you need affordable home loans with minimal documentation and flexible repayment options, turn to a reputable lender such as Tata Capital. You can visit our website page to check your home loan eligibility and apply online.

Apply For Home Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.