A personal loan can prove to be a saviour in the face of a financial crisis. You can rely on personal loan funds to meet a wide range of financial needs be it upcoming wedding expenses or family holidays, or even medical contingency. In addition, with increased digitalisation, availing of a loan using an instant loan app has become a cakewalk. Once you meet the eligibility criteria, all you need are a few documents to apply for an instant loan and the funds will be disbursed to your account. There are many ways of applying for a personal loan, and one of them is by using your PAN Card. Here’s how you can do it.
Personal Loan via PAN Card
The Government of India rolled out PAN cards in 1972. It was made mandatory for all the taxpayers in the country in 1976. PAN stands for Permanent Account Number—a 10-digit alphanumeric identification number used to identify taxpayers of the country.
As per the government’s KYC policies, you can apply for a loan using your PAN Card with any prominent personal loan provider or through an instant loan app. The PAN Card is, in fact, one of the essential documents needed for an instant personal loan application. While it may serve as evidence for your identity as well as address, mostly all lenders will ask for your bank statement as income proof.
Who Can Apply for a Personal Loan using their PAN Card?
The strict eligibility criteria to avail of the benefits of a PAN Card loan are explained below:
- The applicants must be aged between 21 years and 60 years.
- The applicants must be earning at least Rs 15,000 per month.
- The earned income of the applicant should be directly credited into their bank accounts.
- If someone wishes to get a loan via PAN Card, he/she must have a CIBIL score of more than 700.
- If an applicant wants a PAN Card loan, then he/she must provide suitable income documents along with their PAN Card.
Documents Needed to Apply for a Personal Loan
While applying for a personal loan, you will need the documents listed below:
- Know Your Customer or KYC documents are the most important identity proof—Aadhaar Card, the mobile phone number linked to your Aadhaar Card, your Driver’s Licence, PAN Card, as well as your bank account information, might be asked for by the lender.
- Your bank statements for the past 5-6 months.
- Some documents to confirm your employment status where you are presently working.
Last but certainly not least, a decent credit score exhibits your competency to pay loans on time without defaulting.
How Can I Apply for a Loan?
Applying for a PAN Card loan has certain benefits and one of them is it is an instant, hassle-free, and completely digital process. With an instant loan app, you can avail yourself of the same anytime and from anywhere.
The Procedure for Applying for a PAN Card Loan
- You must make sure that you meet all the eligibilities to avail of a personal loan. Also, check how much of the loan amount are you entitled to get digitally utilising your PAN Card.
- Opt for a suitable loan tenure based on your needs and convenience.
- Submit mandatory documents such as a copy of your PAN Card, Aadhaar Card, income and bank account statements and more.
Once you submit all the documents, all you need to do is wait for the loan approval which will happen instantly. Once approved, your loan amount will get credited to your bank account.
Benefits of Applying for a Personal Loan Via Pan Card
- The loan acquired via PAN Card is an unsecured loan, which means you need not pledge any asset to obtain it.
- As and when approved, a PAN Card loan is directly credited into your bank account.
- You may use your PAN Card loan amount for a wide range of purposes such as to meet wedding expenses, pay for your child’s education fee, for medical emergencies, travel and more.
- The payment tenure for a PAN Card loan is usually quite flexible. Mostly, it can be repaid within 5 years of availing of the loan.
- Another advantage of securing a personal loan via the PAN Card is that it often comes with an affordable interest rate.