PAN Card Loan: In case of any emergency, you can also take a personal loan of up to Rs 5 lakh on your PAN card. However, for this you will also need an Aadhaar Card.
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PAN Card Loan: In today’s digital age, PAN card is not just an identity card but has become a proof of your credibility in financial transactions. PAN number is a 10-digit alphanumeric identification number issued by the Income Tax Department of the Government of India. It monitors the monetary transactions of citizens and curbs all transactions that are outside the legitimate framework.
Now it has been made mandatory to link PAN card to almost every bank account, which has made it easier for loan companies to verify your KYC. Due to linking with Aadhar card, the authenticity and security of PAN increases even more. This is the reason why now taking a personal loan on the basis of PAN card has become a common and easy option.
Keep this thing in mind while taking a PAN card loan
If you want to take a personal loan of up to ₹ 5 lakh through PAN card, then you will need both the government-issued PAN and Aadhaar Card. It is important that both the cards are linked to each other, because if not, the loan process may be delayed. If both documents are linked, the amount is transferred to your account within 24 hours of loan approval. If you do not have a PAN card or it is not linked to Aadhaar, then your chances of getting a loan are greatly reduced.
These documents will be required for the loan
The following documents are required to avail a loan of ₹5 lakh on PAN card:
Copy of Aadhaar card, passport, driving license or voter ID as proof of identity.
Any one of these documents as proof of address.
Bank statements for the last three months.
Recent two months’ salary slip or salary certificate with Form 16.
Special features of PAN card loan
The process of availing a personal loan on PAN card is very simple. One can apply for it online, in which only basic details have to be filled and e-KYC process has to be completed through PAN. This type of loan gets instant approval, so you can get quick money even in an emergency. You can also get the benefit of competitive interest rates, provided you compare different banks or financial institutions. The number of documents for this is also very less – only PAN and Aadhaar are sufficient. Also, there is flexible EMI facility for repayment, the tenure of which can be kept from 6 months to 96 months.
How to apply for PAN card loan
First of all, you have to select a bank or finance company that gives personal loan on PAN card. For this, the interest rate, loan amount, repayment terms and credibility of the institution should be kept in mind. Then go to the website of the concerned bank and click on ‘Apply Now’. After filling the mobile number and OTP, fill your name, PAN number, date of birth and pin code in the application form. Now click on “Proceed” and select the loan amount and type (Term, Flexi Term, Flexi Hybrid). Then choose the loan period and submit the form by filling KYC details.
Eligibility Criteria
The applicant for PAN card loan should be a citizen of India. His age should be between 21 to 60 years. It is necessary to have a PAN card and the credit score should be good. Also, there should be a permanent and regular income source – whether the person is employed or self-employed. Also, the debt-to-income (DTI) ratio should be low. For example, if your monthly income is ₹50,000 and your monthly loan and credit payments are ₹28,000, your DTI would be (28000/50000)*100 = 56%. Generally, a DTI of less than 40% is considered good.
Where is a PAN card useful?
PAN card is used not only for loans but also for many important financial activities like paying income tax, buying property worth more than ₹5 lakh, buying or selling a vehicle, applying for a credit card, opening a bank account, investing more than ₹50,000 in shares and bonds, for renting and even for starting an online business. PAN is mandatory.
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