With the wave of digitisation sweeping across India, availing of a personal loan is now quicker than before and, in many cases, all you need is a Permanent Account Number (PAN) card. Credit granting has seen a tectonic shift from one wherein physical documentation was needed to check your creditworthiness to more instant and paperless processes, and the need for a valid PAN card is no longer just a requirement for tax related tasks but a medium to guarantee quick access to credit.
Why PAN Matters for Personal Loans
The Know Your Customer (KYC) verification in various financial institutions and banks highly depends on the PAN card, which is issued by the Income Tax Department. Linked to the Aadhaar, it gives lenders a verified identity and a window into the credit history of the borrower. This link provides faster processing and some realism. With the process elevated and less documentation, getting a personal loan on a PAN card is more feasible.
What you should recall before applying
If you're thinking of using your PAN card to apply for a Rs 5 lakh personal loan, consider the following key things:
Linking Aadhaar and PAN is essential. e-KYC verification depends critically on this. Approval hold-ups are probably without this connection.
Once the PAN and Aadhaar link is checked, loans might be sanctioned within 24 hours.
Not having a PAN card lowers your likelihood of borrowing money from mainly formal financial institutions.
Documents Required
Proof of identity: A Driver's licence, a passport, a voter ID, or Aadhaar can serve as proof of identity.
Address Proof: Proof of address is usually the same as in the identification documents.
Financial records: Form 16, a current salary certificate, or last three months' bank statements and two months' pay slips.
Features of PAN Cards
Loan options depending on PAN cards offer numerous benefits:
Borrowers can apply online by providing basic information and using a PAN card to confirm their identity.
Fast Approval: Several platforms promise approval within hours.
Competitive interest rates: Borrowers can seek the lowest rate by comparing loan proposals from several platforms.
Usually, just PAN and Aadhaar are required.
Loan tenures typically fall between six and ninety-six months.
How to Apply Online
The application process is summarised here in a few lines:
Choose a lender. Review lender comments, loan conditions, and interest rates.
Go to the official website of the lending institution or bank you have selected.
To access the application form, click "Apply Now."
Using the OTP sent, confirm your mobile number.
Enter your name, PAN number, date of birth, and PIN code.
Enter the wanted loan amount and select your loan type: term, flexi term, or flexi hybrid.
Choose a repayment schedule spanning six to ninety-six months.
Upload the necessary papers to finish the KYC process.
Who can qualify for the loan?
The eligibility checklist is as follows:
Should be an Indian citizen.
Age from 21 to 60 years.
Must possess a valid PAN card.
Should have a stable income, salaried or self-employed.
One should really pay credit score.
Your debt-to-income ratio ought to fall within acceptable limits.
