How much ITR is required for loan of 20 lakhs depends on the home loan eligibility criteria of the lender. However, it is a mandate to submit your Income Tax Returns (ITRs) for the last 2 years, especially if you're self-employed or non-salaried. According to Bank’s documentation requirements, borrowers must provide 2 years of ITRs along with computations, P&L statements, and balance sheets if self-employed.
How Much ITR is Required for a Loan?
Salaried applicants usually submit their Form 16 and salary slips, but they may also need ITRs if they have income beyond salary or file as a requirement.
Consider an example: a Rs. 20 lakh loan at 8.75% interest for 20 years gives an EMI of about Rs. 17,674. A prudent lender ensures your total EMIs (including this one) don’t exceed 40 to 50% of your net income.
Based on these EMIs, your annual net income should ideally be Rs. 8 to Rs. 9 lakhs or more, as confirmed through your ITRs.
Lenders also evaluate other essential factors:
A CIBIL score above 700 significantly boosts loan approval odds.
Existing EMIs or liabilities should be manageable alongside the new loan.
Salaried must show consistent salary slips and Form 16; professionals need audited business financials.
Bank finances up to Rs. 30 lakh at 90% of property value; loans above that at 80%, requiring a 10 to 20% down payment.
Approved title deeds, sale agreement, and encumbrance-free records are mandatory.
Bank streamlines documentation with clear requirements: for salaried customers, you need recent salary slips, Form 16, and bank statements; self-employed must submit 2 years of ITRs, audited accounts, and income computation.
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How Much ITR is Required for Loan of 20 Lakhs?
ruchi
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5 months
2025-07-18T09:59:26+00:00 2025-07-18T09:59:28+00:00Comment
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