So it has been a few years since you purchased your first home using a housing loan. But now, as your family is growing, you feel there’s a need to add additional space to the property. To make such structural changes, you decide to apply for a loan for house extension. The only problem? You don’t have adequate proof of income to support your application.

Thankfully, there are ways to avail of an extension loan without showing your ITR or income proof documents. Let’s discuss a few tips that should help you get a loan for a home extension without income proof!

1. Consider adding a co-applicant

If you have a family member with a decent income and a good credit history, get them on board with you. When you apply for a joint loan, the income of both applicants is taken into consideration. So, your chances of loan approval are likely to increase. You may even qualify for more competitive home loan interest rates and a higher loan amount this way.

However, keep in mind that you can only choose a blood relative as your co-applicant. This includes your spouse, mother, father, son, brother, or unmarried daughter.

Additional Read – How to Get Your Application Approved for A Home Extension Loan

2. Keep your savings account under check

Besides your income proof, lenders will also take a good look at your spending habits to determine whether you’re a high-risk or low-risk borrower. Make sure you maintain high average monthly savings, preferably twice that of your proposed home loan EMI, and you should not face issues in getting your loan for extension approved.

You can use an online home loan EMI calculator for faster and accurate estimation of your proposed EMIs.

3. Be transparent with the loan officer

If you don’t have income proof documents, inform your loan officer about your income source along with the reason why you were unable to file an ITR in the current or preceding year. If they find your reason to be valid, your home extension loan application will not be turned down.

Not to mention, your income source will help the loan officer determine your repayment capacity, based on which your home loan eligibility will be determined.

4. Maintain a good credit score

Finally, make sure your credit score is high. For that, monitor your credit utilisation ratio, check your CIBIL report regularly for any discrepancies, ensure your credit card payments, existing home loan, other loan EMIs are paid on time, etc. Since a good credit score shows that you are a responsible borrower, the lender should sanction an extension loan without income proof.

Additional Read – Top Things to Know about Home Extension Loan from Tata Capital

Over to you

If you need a housing loan for extension but do not have income proof, you can apply for a loan with Tata Capital. Keep your photo identity proof, address proof, bank statements, and employment certificate ready and talk to one of our relationship experts.

To find all info regarding extension home loan interest rates and payment options visit our website.

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