How to avail ₹5 lakh personal loan with your PAN card? A step-by-step guide

Permanent Account Number, or PAN, is an identification number that provides lenders with a complete image of the credit pattern. It helps monitor the monetary transactions of citizens and curbs all those transactions that happen outside of the legal framework.

It is vital to link the PAN card number with all the bank accounts, which further makes it easy for lenders to check the PAN for KYC, making the PAN number an important document to avail of a personal loan. As we know, PAN is linked with the Aadhar Card, which adds another layer of security and authentication to preserve the identity.

When linked to Aadhar, the PAN card can also be used to avail a personal loan. Due to the convenience attached, a PAN Card Loan is becoming important nowadays.

Things to remember while opting for a PAN Card loan Online

1. One should have a PAN and Aadhar to apply for a PAN card loan.

2. Make sure that the PAN and Aadhar cards are linked.

3. PAN is considered to be the most crucial document, and if you do not get the same linked with Aadhar, you may experience a delay in getting the loan online.

4. Also, if an Aadhar card and PAN card are linked together, the loan is sanctioned within 24 hours of approval.

5. In the absence of a PAN card, one’s chances of availing of a personal loan from any of the lending institutions in India will drastically reduce.

Documents required:

These are the documents required to be submitted along with ₹5 lakh PAN Card Loan:

1. Identity Proof: Copies of Aadhaar card, Passport, Driving License or Voter ID card.

2. Address Proof: Copies of Aadhaar card, Passport, Driving License or Voter ID card.

3. Bank statements of the previous three months.

4. Latest salary slips (for two months) or current dated salary certificate along with Form 16.

Features of a PAN Card Loan

Provided below are the features of a Personal loan on a PAN Card:

1. Easy Application Process: There is a straightforward process to apply for a 5,00,000 PAN card loan. For online application, you must submit the basic details, and the e-KYC process must be completed with the help of a PAN card.

2. Instant Approval: Getting a personal loan on a PAN card includes a quick approval process, ensuring you get the funds promptly, which can significantly help during emergencies.

3. Competitive Interest Rates: Get a competitive rate of interest with a PAN card loan by comparing the interest on loans offered by various lenders to get the perfect deal.

4. Minimal Documentation: You are only required to provide a PAN card and an Aadhaar card to get the loan approved.

5. Flexible Repayment Tenure: Lenders can choose from multiple repayment options and offer flexible repayment tenures to help make it convenient depending on the financial capacity.

How to Apply for a PAN Card

Step 1: Choose the bank that offers instant loans via PAN card. The factors to be considered while choosing the lenders include rate of interest, amount of loan, terms of repayment, and the bank’s reputation.

Step 2: You can visit the bank’s official website.

Step 2: To open the online application form, click Apply Now”.

Step 3: Provide your 10-digit mobile number along with the OTP.

Step 4: Fill out the PAN card loan application form with your name, PAN number, date of birth, and PIN code.

Step 6: Enter the amount to be borrowed and the loan variant: term, flexi term, and flexi hybrid.

Step 7: Select the loan tenure between 6 to 96 months and click “Proceed”.

Step 8: Fill out the KYC details to send the application.

Eligibility Criteria

To get ₹5 lakh loan, one should meet the below-mentioned criteria:

A. Obviously you have to be a citizen of India.

B. The applicant’s age should be between 21 to 60.

C. An applicant must possess a PAN Card.

D. An applicant should have a good credit score.

E. An applicant should have a regular and permanent source of income.

F. An applicant can either be a salaried or self-employed.

The debt-to-income ratio should be below the threshold limit, which means that the monthly debt payments should not exceed a certain percentage of monthly income.

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