In India, a PAN (Permanent Account Number) card is indeed one of the most essential and widely recognised identification proofs. It is usually required for all transactions above Rs. 50,000. The card’s 10-character alphanumeric code uniquely identifies individuals and is extensively used by authorities to track financial transactions, promoting transparency and preventing tax fraud. Without a PAN card, obtaining a loan can be challenging, as some lenders may refuse to lend without a PAN card.
Despite the common requirement for a PAN card for most transactions and loans in India, some lenders offer instant personal loans without it. Instead, they accept alternate KYC (know-your-customer) documents, providing options for individuals without a PAN card to obtain loans. To learn more about the process of applying for a loan without a PAN card, continue reading below.
Eligibility Criteria for Obtaining a Loan Without a PAN Card
You can avail of an instant loan without a PAN card if you fulfill the following eligibility criteria:
Age: You are only eligible for a loan without a PAN card if you are in the age bracket of 18-57 years. This band might be slightly variable according to various lenders, typically ranging from 18 to 65 years.
A Regular Stream of Income: To qualify, you need a consistent source of income, either through salary or self-employment, ensuring your ability to repay the loan.
Record of Income: Your income must be directly credited to your bank account, allowing the bank statements to serve as proof of your earnings.
Repayment Capacity: If you are a salaried individual, your minimum in-hand salary should be Rs. 13,500 per month. For self-employed individuals, eligibility is granted if your monthly income exceeds Rs. 15,000.
A Good Credit Score: Most lenders seek a credit score above 600, assuring them of your creditworthiness and responsible financial behaviour.
Valid Identity Proof: While the PAN card might not be mandatory, you need to submit other valid identity proofs.
Indian Citizenship: To qualify for a loan without a PAN card, you must be an Indian citizen with valid documentation supporting your nationality.
Documents Required to Apply for a Personal Loan Without a PAN Card
While several loan apps offer instant loans without a PAN card, obtaining them typically requires sharing the following documents:
Valid Photo ID Proof: You can submit a copy of your Voter ID, Passport, Driving License or Aadhaar Card as a valid photo identification.
Address Proof: Voter ID, Passport, Driving License or Aadhaar Card serves as a valid address proof.
Income Proof: To demonstrate your repayment capacity, you will have to provide a copy of your salary credit or primary bank statements for the last 6 months.
Employment Certificate: Provide an employment certificate showing continuous employment for at least a year.
By furnishing these documents accurately and completely, you improve your chances of successfully applying for a personal loan without a PAN card.
How to Apply for a Personal Loan online without Pan Card
Here are the steps to apply for a Personal Loan online without a PAN card:
Alternate Identity Proof: Make sure you have a backup form of identification, like a passport, voter ID, or Aadhaar.
Choose Compatible Lenders: Seek for lenders who will accept these alternative documents in order to confirm the information.
Complete Application: Provide the necessary loan amount in the loan application form, making sure to fill it out completely.
Submit Supporting Documents: Attach supporting documentation such as income statements, proof of address, and the selected alternative identity.
Additional Declaration: In place of the PAN card, certain lenders could ask for an extra declaration.
Verification Process: Go through the verification process with the lender so they can confirm your details.
Approval and Disbursement: As soon as the loan is approved, the funds are transferred to the designated account.
Benefits of Applying for Personal Loan without PAN Card
Here are the benefits of applying for a personal loan without a PAN card-
1. Quick approval- A loan without submitting any documents, such as a PAN card, is usually a pre-approved offer by the lender. This allows you to get the required funds urgently without the lengthy application process.
2. Fast disbursal- In cases of pre-approved loans without submitting PAN cards, you can enjoy fast disbursal.
3. Paperless application process- To get a personal loan without a PAN card, you need to submit standard documentation such as ID proof and income proof online. This ease of online document submission makes the application process paperless.
Tips to Apply for a Loan Without PAN Card
In situations where individuals may not possess a PAN card yet urgently need financial assistance, understanding the available alternatives and the process to apply for a loan without a PAN card becomes essential. Valuable tips on how to successfully secure a loan without the traditional PAN card documentation are listed below.
Maintain a Good Credit Score: Having a good credit score is crucial when applying for a loan without a PAN card. Lenders often consider the creditworthiness of applicants to assess their repayment capacity. A strong credit score demonstrates responsible financial behaviour and increases the likelihood of loan approval.
Identify Lenders and Loan App Without PAN Card: Research and identify lenders or loan apps that offer instant loans without a PAN card. Look for lenders with a reputation for transparent and efficient loan processing to ensure a smooth borrowing experience.
Check Eligibility: Before applying for a loan without a PAN card, carefully review the eligibility criteria set by the lender. While some institutions might have lenient requirements, others may have specific conditions in place.
Finalise Lender: Compare the lenders and pick the one with the best terms and lowest interest rate. Your choice may also depend on the other terms such as favourable tenure and no-prepayment penalties.
Share Documents: When applying for a loan without a PAN card, it is essential to provide accurate and up-to-date documentation as required by the lender. Submitting incomplete or incorrect information may lead to loan rejection or delays in processing.
Features and Benefits of Personal Loan
Let’s check out the various features and benefits of applying for a personal loan-
1. Flexible loan amount- Most lenders offer flexible personal loan amounts, up to Rs. 35,00,000, to help you easily meet your financial needs.
2. Collateral-free loan- Personal loans are collateral-free, so you don’t need to pledge security to get the necessary funds.
3. Multipurpose- Personal loans are highly flexible and can be used to meet various financial needs – from meeting urgent medical needs to travel, education, or wedding expenses.
4. Competitive interest rate- Personal loans are available at competitive interest rates.
5. Convenient loan tenure- You can also enjoy the flexibility to choose a personal loan tenure based on your financial needs to ensure a seamless repayment process.
Conclusion
Applying for a personal loan online without a PAN card is possible by providing alternate KYC documents. However, maintaining a good credit score and submitting accurate documentation are essential steps in the process. Non-Banking Financial Companies (NBFCs) typically have more flexible eligibility criteria than scheduled banks. Tata Capital is one such NBFC offering personal loans at favourable terms.
Although a PAN card is not mandatory, having one ensures quicker approval and instills lender confidence in your repayment capacity. While some lenders may still grant loans without a PAN card, it is advisable to obtain one promptly. Applying for a loan without a PAN card should be a last resort. Prioritise acquiring a PAN card to enjoy smoother loan processes and better borrowing opportunities.
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FAQs
The time taken to get a loan without a PAN card can vary from one lender to another, based on the time taken to complete documentation and verification processes by the lender.
Some lenders may allow alternative documents such as bank statements, Form 16, or other valid income proofs when applying for a personal loan without a PAN card or salary slips.
The interest rate for personal loans without a PAN card may be higher due to the increased risk perceived by lenders. Providing additional financial proof and identity documentation may help enhance your loan eligibility and negotiate better rates.
Depending on the lender’s documentation requirements, you can submit your Aadhaar card as ID proof if you don’t have a PAN card. Lenders generally accept Aadhaar cards for identity verification and address proof during the loan application process.
10 December 2024
7 mins read
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