A loan against property is a financial option where individuals can borrow money by pledging their property as collateral, even if they don't have a substantial ITR to show. This type of loan is usually popular among self-employed individuals or those who may not have a consistent ITR.
Lenders evaluate the property's value and the borrower's creditworthiness to determine the loan amount. The property serves as security, reducing the risk for the lender, which can result in more favorable terms for the borrower.
While it's accessible to those with irregular ITR, interest rates may be slightly higher, and the loan amount may be lower compared to traditional loans. Additionally, the property's title should be clear, and the borrower must be able to prove their repayment capacity through other financial documents or assets. Careful consideration is essential before opting for such a loan to ensure manageable terms and conditions.