How to get a personal loan on a PAN card?

Personal Loan


7 December 2021

How to get a personal loan on a PAN card?

Highlight: Considering getting a personal loan on a PAN card? Know some important information before applying for one. 

You can need money anytime for large expenditures or emergencies. A personal loan is the best option for an immediate financial crunch. Nowadays, personal loans are available online and offline, with minimum paperwork while following a hassle-free process. Unplanned expenses such as medical emergencies, debt repayment, wedding, and many others can be stressful when you don’t have an adequate savings fund to fall back on. The best thing about a personal loan is that you do not specify any reason to avail one; the loan amount raised after successful application approval is free to use for any purpose (except illegal activities).

When applying for a personal loan online, you have to go through procedures like document submission and verification. Generally, these procedures are completed within a day or two, depending on the company policies. There are options like a personal loan on a PAN card or Aadhaar card that make the entire procedure effortless and quick since these are the two primary identification documents recognized all over the country.

Also Read: Know-How To Get Personal Loan Using An Aadhar Card

What do you understand by a PAN card?

A PAN card is an identity card with a ten-digit code that acts as a unique identification number. The PAN card stands for Permanent Account Number and is used to identify the taxpayers in the country. This computer-based identification system assigns the unique identification code to every tax-paying Indian citizen. This method allows each person’s tax-related information to be stored in a single PAN number, unique to all. It assures that no two Indian taxpayers can have the same PAN number.

What are the uses of PAN Card in financial transactions?

Besides serving as a unique identity proof, a PAN card is essential for all taxpayers. It helps the system track every inflow and outflow of money and is crucial for all financial transactions. 

Let’s take a look at some of the uses of PAN cards in financial activities:

  • A PAN Card is required while paying income taxes
  • A PAN card is needed at the time of new business registration
  • While paying direct taxes, a PAN card is required
  • When purchasing a property valued above ₹5 Lakhs, a PAN card is necessary
  • PAN card is essential when applying for a loan, including personal loans
  • PAN is required when purchasing bonds or shares above ₹50,000
  • Selling or purchasing vehicles (other than two-wheelers), one must provide PAN card details

How can you apply for a personal loan on a PAN card?

The ten-digit number on your PAN card holds many unique information about your financial standing. A PAN card is crucial when applying for a personal loan because it helps the lender check your credit history. Almost all banks and non-banking financial companies (NBFCs) will ask for your PAN card while applying for a personal loan. Some lenders will even need your Aadhaar card to proceed with your application. 

The benefit of having a PAN card while applying for a personal loan will make the procedure hassle-free. Usually, the application process for a personal loan can be done at home while following a few simple steps online. 

How having a PAN card helps with the personal loan process?

PAN card is mandatory identification proof for all Indian taxpayers. The PAN card will ensure more straightforward and quick financial transactions across many platforms. Even while applying for a personal loan, having a PAN card makes the entire procedure easy for both the lender and the borrower.

  • Having a PAN card reduces the number of documents required for the loan application
  • It makes the verification process quick, generally with one to two days.
  • You no longer have to visit any branch and conduct the entire process at home.
  • Your PAN number shows your credit history to the lender, which makes them decide whether to approve or decline your application.
  • Banking transactions like loan applications become easily manageable once your Aadhaar card is linked with your PAN card.

When can we take personal loans, and how is it beneficial?

Personal loans are easy to get because financial assistance comes in handy at times of monetary crisis or any personal emergencies.

Here are some benefits of taking a personal loan:

  • A personal loan is flexible and can be used for any purpose, unlike specific loans like home loans or car loans. You can use a personal loan to fund an expensive purchase, home renovation, marriage, medical emergency, paying off personal debts, and more.
  • Once approved, a personal loan amount is disbursed to your bank account to be used anytime at your convenience.
  • Personal loans come with flexible repayment and EMI options; you can choose the repayment method and tenure that suits you the best. 
  • Personal loans are unsecured loans, so you are not required to offer your asset/s security or collateral.
  • Many trusted finance companies and banks offer personal loans on both online and offline platforms. The entire process is digitized and requires just a few essential documents to get processed.

Know the eligibility of applying for a personal loan on a PAN card

  • It would help if you were between 21 and 55 years.
  • You must be an Indian citizen.
  • You must be self-employed or a salaried professional for at least six months to be eligible to apply
  • You must have a good credit score. A credit score above 600 is advantageous for the applicant. A credit score of 700-750 is considered perfect for getting no-questions-asked personal loan approval.

What are the requirements when applying for a personal loan?

Though applying for a personal loan requires comparatively fewer documentation and verification checks than applying for a house loan or a business loan, the few documents required for a personal loan application are crucial for a positive and quick verification process.

  • A correctly and duly filled online/offline application form
  • Proof of identity – PAN card, Voter ID, Aadhaar Card, or Driver’s license. 
  • Residence proof – ration card, electricity bill, telephone bill, passport, or Voters ID
  • Proof of income which includes bank statements, salary slips, or income tax returns
  • Passport-sized photographs

Also Read: Need 1 Lakh Rupees Emergency Loan Urgently? Apply Here

Personal loan on PAN card – A life-saver for many

The popularity of personal loans has surged in recent times during and after the covid pandemic, which made even the most solid income professional take a hit. The entire procedure from application to verification and loan disbursement being easy and quick has helped with more and more individuals opting for personal loans. 

Applying for a personal loan on a PAN card has never been this more accessible and seamless. It resulted in eliminating unnecessary documentation while making the process quick and smooth for both parties. 

To get information on how to apply for one and to know the benefits, visit EarlySalary today!.

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