PAN Card Loan: Get Easy Personal Loans up to Rs 5 Lakh:

PAN Card Loan: In this age of technology, a PAN card serves not only as an identity card, but also as a symbol of one's credibility when it comes to monetary dealings. The PAN number is a 10 digit alphanumeric number given by the Income Tax Department of the Government of India. It keeps a check on the financial dealings of the citizens and restricts all dealings that are outside the legal framework.

It is now compulsory to link the PAN card with almost all the bank accounts which enables easier verification of KYC by loan companies. The linking with Aadhar card further enhances the credibility and safety of the PAN also. This is exactly why obtaining a personal loan through PAN card has become an everyday and effortless task.

What you should remember while availing loans against your PAN Card:

For a personal loan of up to ₹ 5 lakh, you are required to possess a PAN and Aadhaar Card. It is crucial that you be able to link both cards, else the availing of the loan will undergo tedious processes. If the documents are linked, the funds are deposited in your account within 24 hours of obtaining loan approval. The absence of a PAN card, or lack of it being linked to the Aadhaar, greatly diminishes the prospects of the loan being approved.

Documents Required for the Loan Availing Proccedure

For the purpose of taking a loan amounting to ₹5 lakh on a PAN card, the following documents are mandatory:

A passport, a driving or voter ID can also be used as an Aadhaar card however they are not obligatory to verify identity.

Any passport or driving ID can also serve as proof for residence.

Three months worth of salary and bank statements are required.

Two latest months salary slip or salary certificate along with Form16 makes one eligible.

Distinctive aspects of the loan on PAN card

Obtaining a personal loan through a PAN card is a very easy undertaking. It can be done entirely online, which requires only filling in the bare minimum information and completing an e-KYC using their PAN. Such loans are pre-approved which makes it easier to access needed funds during emergencies. If one intends to compare different banks and financial institutions, it is also possible to receive lower than average interest rates. The number of documents required for this loan is also minimal – just PAN and Aadhaar will suffice. In addition, payment of the loan can be done by equated monthly installment whereby the borrower can set the duration between 6 months to 96 months.

Applying For A PAN Card Loan

Choosing a bank that offers personal loans using PAN cards as collateral is the first step. You need to gather information about the interest rates, amount to be borrowed, repayment conditions, and the reputation of the entity. Afterwards, visit the official website of the respective bank and click on "Apply Now." After a successful and verification, enter your mobile number and OTP. After this, you are required to enter your name, PAN number, date of birth, and PIN. Now, you have to click "Proceed" and select the preferred loan type (term, flexi-term, flexi-hybrid) and amount. After this you are required to submit KYC details and select your preferred loan term.

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 estimated monthly loan and credit payments are ₹28,000; then your DTI would be (28000/50000)*100 = 56%. A DTI below 40% is generally considered good.

Where is a PAN card useful?

The PAN card is used not only for taking loans, but also for paying income tax, buying property above ₹5 lakh, selling or buying a vehicle, applying for a credit card, renting, opening a bank account, investing more than ₹50,000 in shares and bonds and for starting an online business. PAN is mandatory.