<figure class="wp-block-image size-large hts-content-image"><img src="https://images.unsplash.com/photo-1685906178166-4a9143b6343d" alt="Understanding ITR Requirements for Personal Loans in India"/></figure>
<h2>Introduction to ITR Requirements</h2><p>When applying for a personal loan in India, one question often arises: how many years of Income Tax Returns (ITRs) do banks require? Typically, banks look for ITRs covering 1 to 2 years, but the requirements can vary based on the applicant&#8217;s employment status.</p><h2>Salaried vs Self-Employed: What Banks Expect</h2><p>Salaried individuals usually have an easier time securing a personal loan, as banks often rely on salary slips and Form 16 to verify income. In contrast, self-employed applicants face stricter scrutiny. Banks may demand ITRs for a longer period, sometimes up to 3 years, especially if the income varies significantly from year to year.</p><h2>Factors Influencing ITR Requirements</h2><p>The specific ITR requirements for personal loans can depend on several factors, including the lender&#8217;s policies, the total loan amount requested, and the applicant&#8217;s creditworthiness. It is crucial for borrowers to maintain accurate records and files of their tax returns to avoid any delays in the loan approval process.</p><p>In conclusion, understanding the ITR requirements is vital when applying for personal loans in India. By being aware of the documentation needed, both salaried and self-employed individuals can be better prepared to meet the expectations set by financial institutions.</p>
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