Are IT returns mandatory for business loan applications?

Income Tax Returns (ITRs) are important documents that help lenders assess the financial health and income stability of a business. Most lenders require ITRs for the past two to three years as part of the loan application process, especially for larger loan amounts. However, it is not always mandatory to have filed ITRs to obtain a business loan. Some lenders may consider alternative documents such as bank statements, balance sheets, and proof of business ownership, particularly for smaller loan amounts or new businesses. While having ITRs strengthens your loan application, you may still be eligible for a loan without them, depending on the lender’s policies and the nature of your business.