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. Being linked to an Aadhaar card increases the authenticity and security of PANs even more. This is the reason why now taking a personal loan based on a PAN card has become a common and easy option.
Keep this thing 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 a PAN and an Aadhaar Card issued by the government. It is important that both the cards are linked to each other, because if not, the loan process may get delayed. If both 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 identity proof.
Any one of these documents as address proof.
Bank statements of the last three months.
Salary certificate along with salary slip or Form 16 of the last two months.
Key points of PAN card loan
The process of taking a personal loan on a PAN card is very simple. It can be applied online, in which only basic details have to be filled and the 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 low – 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 a PAN card loan
First of all, you have to select a bank or finance company that offers personal loans on a 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 entering the mobile number and OTP, enter 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 a PAN card loan must be an Indian citizen. 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 stable 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 payment is ₹28,000, then your DTI will be (28000/50000)*100 = 56%. Generally, a DTI less than 40% is considered good.
Where is 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.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
