Usually, a PAN Card is a mandatory document when you deposit, make an investment, and borrow funds above 50,000 from a bank. You will also need a PAN card to open a new bank account, file an income Tax Return, or apply for a personal loan.
However, if you lose your PAN card and require an urgent sum, you can apply for a personal loan without a PAN Card. But before applying for a personal loan without a PAN Card, you should learn about its eligibility criteria. Moreover, banks allow their customers to borrow money online as the loan application and disbursal processes become digitized.
Why should you avail of a personal loan with a PAN Card?
If you are getting a personal loan from a bank or lender for the first time, you should apply for it by meeting all their requirements. Submitting all required documents with a loan application increases the chance of loan approval. However, if you apply for a loan without pan card, the lender may reject it or take more time for loan approval. Some lenders may let you borrow the money without needing your PAN card. However, they may charge more interest rates and processing fees on personal loans. You should keep your PAN card handy while online applying for a personal loan.
Eligibility Criteria and Documents required for Personal Loan
You can check the eligibility criteria and necessary documents for a personal loan by asking the lender or checking their website. Most banks and finance companies have similar eligibility criteria for a personal loan. The general eligibility criteria include that the applicant must be an Indian citizen between the age of 21 to 65 with a stable income source. The eligibility criteria may differ for salaried or self-employed persons.
The documents you need when applying for a loan include proof of identity, address, income, and PAN card. Hence, a PAN card is a mandatory document for every loan product for most banks.
How to apply for a Personal loan if you don’t have a PAN Card?
Sometimes loan applicants lose their important documents for several reasons, making it difficult to open a new bank account or lend money from the bank. However, some banks and finance companies provide loan without pan card. You should learn about their eligibility criteria for a personal loan without a PAN card. First, you should apply for a PAN card and follow these tips in case your PAN card is not available at the moment:
- Submit your bank statement for a financial assessment.
- A high credit score is critical for the quick approval of a personal loan.
- Approach lenders who are offering loans with minimum documentation and less stringent eligibility.
- You can submit identity proof or utility bills instead of a PAN card. However, you should ask your lender about a substitute for your PAN card.
- Show proof of a stable repayment history to your lender to get a loan without a PAN card.
Things to remember before you apply for a personal loan
A personal loan is ideal when you need urgent money without much documentation. You can use a personal loan to pay medical bills, travel expenses, and study abroad fees. However, you should learn a few things before getting a personal loan.
- Applying for a personal loan online is a hassle-free process; you can apply for it anywhere. You can search for different loan products easily from your screen.
- Compare the interest rates from different banks before applying for a personal loan. Opt for the loan with the lowest interest rate. You should also consider other charges like processing fees along with interest rates.
- You can determine the loan amount and repayment period according to your convenience. Remember the repayment period greatly affects your EMIs.
- Maintain a good credit score to make the loan application process quick. You can repay your credit card bills or repay your loan to maintain a good credit history.
- You should avoid getting a loan with the lowest interest with a gimmicky scheme as they charge a low-interest rate initially but increase it significantly as time passes.
You will need a PAN Card for loan verification. It is essential to keep your PAN card in your hand when applying for a personal loan. However, some banks can provide you with a loan without pan card. Check for deals on personal loans from your lender.