PAN Card Loan : In modern times, the PAN card is more than simply an identity card; it has also become proof of your credibility in financial transactions. The Income Tax Department of the Government of India issues PAN numbers, which are 10-digit alphanumeric identity numbers. It monitors citizens’ monetary transactions and prohibits any transactions that violate the legitimate framework.
Linking your PAN card to practically every bank account is now essential, making it easy for lending firms to verify your KYC. The legitimacy and security of PAN are enhanced further by linking with Aadhar card. This is why acquiring a personal loan with a PAN card has become such a popular and simple alternative.
Keep this in mind when getting a PAN card loan.
To apply for a personal loan of up to ₹ 5 lakh using your PAN card, you must have both the government-issued PAN and Aadhaar card. It is critical that both cards are linked, because otherwise the loan process may be delayed. If both documents are linked, the funds will be paid to your account within 24 hours of loan approval. If you do not have a PAN card or it is not connected to Aadhaar, your prospects of securing a loan are significantly diminished.
These documents will be needed for the loan.
- To apply for a ₹5 lakh loan on a PAN card, the following documents are required:
- As proof of identity, provide a copy of your Aadhaar card, passport, driver’s license, or voter ID.
- You can use any of these documents as evidence of address.
- Bank statements over the past three months.
- Recent two-month salary slip or salary certificate with Form 16.
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Features of PAN Card Loan
The process of obtaining a personal loan with a PAN card is fairly straightforward. One can apply for it online, filling out very basic information and completing the e-KYC process via PAN. This form of loan has speedy approval, so you can acquire money fast even in an emergency. You can also profit from competitive interest rates by comparing other banks or financial institutions. This requires only two documents: PAN and Aadhaar. There is also a flexible EMI financing option available, with terms ranging from 6 to 96 months.
How to Apply for PAN Card Loan
First and foremost, choose a bank or financial firm that offers personal loans with a PAN card. Consider the interest rate, loan amount, payback conditions, and the institution’s credibility while making this decision. Then go to the bank’s website and click ‘Apply Now’. After entering your cellphone number and OTP, fill in your name, PAN number, date of birth, and pin code on the application form. Click “Proceed” and select the loan amount and type (Term, Flexi Term, or Flexi Hybrid). Then select the loan period and submit the form with your KYC information.
Eligibility criteria
The candidate for a PAN card loan should be an Indian citizen. His age should be between 21 and 60 years. It is required to have a PAN card and a high credit score. There should also be a stable and consistent source of income, whether the individual is employed or self-employed. Additionally, the debt-to-income ratio (DTI) should be modest. For example, if your monthly income is ₹50,000 and your loan and credit payments are ₹28,000, your DTI is (28000/50000)*100 = 56%. In general, a DTI less than 40% is regarded good.
Where is a PAN card useful?
PAN cards are used for a variety of financial activities, including paying income tax, purchasing property worth more than ₹5 lakh, purchasing or selling a vehicle, applying for a credit card, opening a bank account, investing more than ₹50,000 in shares and bonds, renting, and starting an online business. PAN is required.
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