How to get ₹5,00,000 Loan on a PAN Card?

PAN, i.e. Permanent Account Number, is an identification number that provides lenders with a complete image of the credit pattern. This number is a 10-digit alphanumeric number issued by the Income Tax Department of India. It helps monitor the monetary transactions of Indian citizens and curbs all those transactions that happen outside of the legal framework. 

 

In this digital era, it becomes mandatory 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 coupled with Aadhar, the PAN card can also be used to make a personal loan available. Due to the convenience attached, a PAN Card Loan is becoming important nowadays.

 

 

Things to Remember While Opting Choosing a PAN Card Loan Online

Mentioned below are the things to be remembered while choosing a PAN Card Loan online:

• One should have a government-issued PAN and Aadhar to apply for a PAN card loan.
• Make sure that the PAN and Aadhar cards are linked.
• 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.
• Also, if an Aadhar card and PAN card are linked together, the loan is sanctioned within 24 hours of approval.
• 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 

 

Provided below are the documents required to be submitted along with the INR 5 Lakh PAN Card Loan: 

 

• Identity Proof – Copies of Aadhaar card, Passport, Driving License or Voter ID card.
• Address Proof – Copies of Aadhaar card, Passport, Driving License or Voter ID card.
• Bank statements of the previous three months.
• 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:

• 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.

• 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.

• 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.

• Minimal Documentation:

You are only required to provide a PAN card and an Adhaar card to get the loan approved.

• 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 lender bank that offers PAN card loans by comparing different vendors available. The factors to be considered while choosing the lenders are the interest rate, loan amount, terms of repayment, and the lender’s reputation.

Step 2: The bank’s official website should be launched.

Step 3: To open the online application form, click Apply Now”.

Step 4: Provide your 10-digit mobile number along with the OTP.

Step 5: Fill out the PAN card loan application form with your name, PAN number, date of birth, and PIN code. 

Step 6: Click “Proceed”.

Step 7: Enter the amount to be borrowed and the loan variant: Term, Flexi Term, and Flexi Hybrid.

Step 8: Select the loan tenure between 6 to 96 months and click “Proceed”.

Step 9: Fill out the KYC details to send the application.

 

Eligibility Criteria

To get a 5 Lakh Loan, one should meet the below-mentioned eligibility parameters:

• An applicant should be a citizen of India.
• The applicant’s minimum age should be 21 years.
• The applicant’s maximum age should be 60 years.
• An applicant must possess a PAN Card.
• An applicant should have a good credit score.
• An applicant should have a regular and permanent source of income.
• 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.

 

Example: 

• Gross Monthly Income: INR 50,000
• Monthly Housing Loan EMI: INR 15,000
• Monthly Car Loan EMI: INR 8,000.
• Credit Card Minimum Amount to be Paid: INR 5,000
• Other Expenses on a Monthly Basis: INR 10,000

Below mentioned is the formula to calculate the Debt-to-Income Ratio:

Total Monthly Debt Payments = Monthly Housing Loan EMI + Monthly Car Loan EMI + Credit Card Minimum Payment = ₹15,000 + ₹INR 8000 + ₹5000 = ₹28,000.

DTI = (₹28,000 / ₹50,000) x 100 = 56%

In this example, the DTI is 56%, which means 56% of the monthly income is dedicated towards the repayment of debts. A lower DTI is preferred as it depicts a lower risk of default in additional debt obligations.

 

Pan Card Usage in Financial Transactions

• To make an income tax payment
• To purchase property over and above the value of INR 5 lakhs.
• To apply for a loan
• To buy or sell a vehicle
• To register a business
• To buy equity shares and bonds above INR 50,000
• For renting purpose
• To open a bank account
• To apply for a credit card
• To set up an e-commerce store in India
• To carry out a financial transaction in the name of a cooperative society or trust.

Conclusion

Getting a personal loan without a PAN card is quite difficult. This is due to PAN Card and KYC documents simplifying the loan application process and building up the confidence of lenders in the borrower’s credibility. A faster loan approval process can be achieved by understanding the importance and ensuring accuracy.