PAN Card Loan- In case you need a loan in an emergency, your PAN card will come in handy. Yes, you’ve heard it right. You can get a huge loan using your PAN Card smartly. In today’s digital age, the PAN card is not just an identity card but has become proof of your credibility in financial transactions. A PAN number is a 10-digit alphanumeric identification number issued by the Income Tax Department of the Government of India. It monitors the monetary transactions of citizens and curbs all transactions that are outside the legitimate framework.

Now it has been made mandatory to link PAN card to almost every bank account, which has made it easier for loan companies to verify your KYC. Linking to Aadhar card further increases the authenticity and security of PAN. This is the reason why taking a personal loan on the basis of PAN card has now 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 Rs 5 lakh through PAN card, then you will need both the government-issued PAN and Aadhaar Card. It is important that both the cards are linked to each other, because if not, the loan process may be 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 avail a loan of ₹5 lakh on PAN card:

Copy of Aadhaar Card, Passport, Driving License or Voter ID as identity proof.

Any one of these documents as proof of address.

Bank statements for the last three months.

Salary slip of last two months or salary certificate along with Form 16.

Special features of PAN card loan

The process of getting a personal loan against PAN card is very simple. It can be applied online, in which only basic details have to be filled and e-KYC process has to be completed through PAN. This type of loan gets instant approval, so you can 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 for this is also very less – only PAN and Aadhaar are sufficient. Also, there is a flexible EMI facility for repayment, the tenure of which can be kept from 6 months to 96 months.

How to apply for PAN card loan

First of all, you have to select a bank or finance company that offers personal loan on 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 the mobile number and OTP, fill 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 period and submit the form by filling KYC details.

Eligibility Criteria

The applicant for a PAN card loan must be an Indian citizen. His age should be between 21 and 60 years. It is mandatory 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 Rs 28,000, then your DTI will be (28000/50000)*100 = 56%. Generally, a DTI less than 40% is considered good.