PAN Card Tips: You can also get a loan of ₹ 5 lakh on a PAN card, just have to follow these steps..

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 that are outside the legitimate framework.

Now it has been made mandatory to link PAN card with almost every bank account, making it easier for loan-giving companies to verify your KYC. Being linked to the Aadhaar card increases the authenticity and security of PAN even more. This is the reason why taking a personal loan on the basis of 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 Aadhaar Card issued by the government. It is important that both 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 is proof of address.

Bank statements of the last three months.

The recent two-month salary slip or salary certificate with Form 16.

Special features of PAN card loan
The process of taking a personal loan on a PAN card is very simple. For this, one can apply 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, allowing you to get quick funds 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 required is also very few – 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 a personal loan 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 filling in the mobile number and OTP, fill in 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 tenure, fill in the KYC details, and submit the form.

Eligibility Criteria

The applicant for a PAN card loan must be a citizen of India. His age should be between 21 and 60 years. It is necessary to have a PAN card and a good credit score. There should also be a stable and regular income source, whether the person is employed or self-employed. Also, the debt-to-income (DTI) ratio should 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 of less than 40% is considered good.

Where is a PAN card useful?

PAN card is not only used 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 above ₹50,000 in shares and bonds, for renting and even for starting an online business.

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