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Loans Based on a PAN Card: In this digital era, a PAN card serves as an identity card.This also serves as an identification of your trustworthiness during any financial dealing. Obtained from the Income Tax Department of the Government of India, PAN or Permanent Account Number, is a ten string alphanumeric number. It keeps track of citizens’ financial dealings and stops any illegal activities.
It is now compulsory to associate PAN card with every bank account, which eases the process of verifying a customer’s KYC for loan providers. Association with Aadhar card further enhances PAN’s reliability and protection. This is the reason why acquiring a personal loan using a PAN card is simpler in the present.
Keep this in mind while seeking a loan on PAN card.
The full steps to avail of a personal loan upto ₹ 5 lakh through PAN card require a government authorized Aadhaar card. The linking of the two cards is crucial, as it may add unnecessary delays to the loan process. However, If the documents are linked the amount gets credited to the account within 24 hours after approval. In cases where the petitioner does not have a PAN card, or it is not linked to the Aadhaar card makes it increasingly difficult to process the loan application.
The documents listed below are necessary to obtain a loan of up to 5 lakh against a PAN card.
Self-attested photograph of Aadhaar card, along with one of the following: Passport, Driving License, Voter ID.
Any government-issued ID provided as proof of address will suffice.
Bank statements for the last 3 months
Recent 2 months salary slip/ Salary certificate with Form 16.
Applying for PAN card loans is also termed as personal loan linked to PAN card, and is described the simplest process. A person can apply over the internet by simply filling out a form and completing the e-KYC procedure through the PAN card. It is quite clear that this type of loan has almost immediate approval, thus instant cash even during exigencies. PAN card loan also enable borrowers to take advantage of lower rates of interest if thorough comparisons between banks and financial institutions of the same type are made. The number of documents required is also minimal: PAN and Aadhaar will obtain sufficiency. In addition, these loans also enable flexible repayment through EMIs where the period for repaying the loan can be from six months to as long as 96 months.
How to Apply for a loan using a PAN Card
To begin with, you need to choose a bank or a finance company that offers a personal loan against a PAN Card. The institution's interest rate, loan amount, repayment terms and credibility should also be given focus. Next go to the website of the bank and select “Apply Now”. Enter your mobile number and OTP and fill in the application with your name, PAN number, date of birth and pin code. Click on Proceed, select the loan type (Term, Flexi Term, Flexi Hybrid) and loan amount. Finally, fill in KYC details, select the loan period and submit.
Eligibility Requirements
The applicant for the PAN card loan must be a resident of India. The individual’s age must fall within the range of 21 to 60 years. Having a PAN card is a requirement along with possessing a decent credit score. Moreover, the individual’s financial standing should be stable and permanent, irrespective of whether the person is employed or running their own business. Additionally, the DTI (debt-to-income) ratio has to be low as well. To illustrate, if your monthly income is ₹50,000 and you have ₹28,000 in monthly loan and credit payment obligations, your DTI would be (28000/50000)*100 = 56%. A DTI of less than 40% is generally deemed acceptable.
In what areas is a PAN card beneficial?
A PAN card is beneficial not only for loans, but also for many other financial activities like tax payment , property purchase exceeding ₹5 lakh, vehicle purchase or sale, credit card procurement, bank account opening, investment surpassing ₹50,000 in shares or bonds, renting property, and even launching an online business. PAN is needed in all of these cases.
