PAN Card Loan: In today's digital age, a PAN card is not just an identity card, but has become proof of your credibility in financial transactions. PAN number is a 10-digit alphanumeric identification number, which is issued by the Income Tax Department of the Government of India. It monitors the monetary transactions of citizens and curbs all those transactions which are outside the legitimate framework.

Now it has been made mandatory to link your PAN card with almost every bank account, making it easier for loan giving companies to verify your KYC. Due to being linked to Aadhaar card, the authenticity and security of PAN increases even more. This is the reason why taking a personal loan on the basis of PAN card has now become a common and easy option.

Keep this in mind while taking a PAN card loan

If you want to take a personal loan of up to ₹ 5 lakh through a PAN card, then you will need both the PAN and Aadhaar Card issued by the government. It is important that both the cards are linked to each other, because if it is not so, then the loan process may be delayed. If both the documents are linked, the amount is transferred to your account within 24 hours of loan approval. If you do not have a PAN card or it is not linked to Aadhaar, then your chances of getting a loan are greatly reduced.

These documents will be required for the loan

The following documents are required to take a loan of ₹ 5 lakh on a PAN card:

Copy of Aadhaar card, passport, driving license or voter ID as proof of identity.

Any one of these documents as proof of address.

Bank statements of the last three months.

Salary slip of the last two months or salary certificate along with Form 16.

Special features of PAN card loan

The process of taking a personal loan on PAN card is very simple. It can be applied online, in which only basic details have to be filled and e-KYC process has to be completed through PAN. This type of loan gets instant approval, so that you can get money quickly even in an emergency. You can also get the benefit of competitive interest rates, provided you compare different banks or financial institutions. The number of documents for this is also very less – only PAN and Aadhaar are sufficient. Also, there is a flexible EMI facility for repayment, the duration of which can be kept from 6 months to 96 months.

How to apply for PAN card loan

First of all, you have to choose a bank or finance company that offers personal loan on PAN card. For this, the interest rate, loan amount, repayment terms and credibility of the institution should be kept in mind. Then go to the website of the concerned bank and click on 'Apply Now'. After filling the mobile number and OTP, fill your name, PAN number, date of birth and PIN code in the application form. Now click on "Proceed" and select the loan amount and type (Term, Flexi Term, Flexi Hybrid). Then select the loan period and submit the form by filling KYC details.

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 a good credit score. 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 also be low. For example, if your monthly income is ₹50,000 and your monthly loan and credit payments are ₹28,000, your DTI is (28000/50000)*100 = 56%. Generally, a DTI of less than 40% is considered good.

Where is a PAN card useful?

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