How do you get a Personal Loan without a Pan Card?

Getting a personal loan can be beneficial on many levels. To get a loan sanctioned, important documents like a PAN card and bank statements are required. A PAN card, also known as the Permanent Account Number, is a 10-digit alphanumeric number that can be used to track an individual’s financial transaction. It is issued by the Income Tax Department of India to each of the taxpayers in the country.

A PAN card also serves as a mandatory document for receiving a salary, purchase of mutual funds or bonds, buying a life insurance policy, and applying for a personal loan. However, sometimes, getting a personal loan without a PAN card is possible. So, let’s find out how to apply for a personal loan without a PAN card.

1] What is a Personal Loan?

A personal loan is a relaxed debt that can be taken in case of emergencies or for making a major purchase. There is no collateral required to apply for a personal loan. It is usually sanctioned for a short period of 1 to 5 years.

You can even opt for flexible payments while repaying the loan. The repayment options might be decided by the lender based on the CIBIL score or credit history. The loan is repaid every month via EMIs. Personal loans usually require a lot fewer documents compared to other loans.

 A personal loan can be used for:

• Debt consolidation
• Paying medical expenses
• Medical emergencies
• Travel or leisure purposes
• Wedding expenses
• Education loan or fees
• Home improvement
• Paying off taxes

Also Read: How Do You Get a Personal Loan Without Security?

2] Eligibility criteria for a personal loan without a PAN card

To apply for a personal loan without a PAN card, you must meet the following criteria.

• All the applicants must be aged between 21 years and 57 years
• The income of the applicant must be ₹13,500 or more
• The income of the applicant must be credited directly to their bank account
• The CIBIL credit score of the applicant must be a minimum of 600
• A consistent history of repaying loans on time can form the basis for loan sanctions without a PAN card.

Submitting utility bills and ID proof instead of a PAN card can work for some lenders. However, it depends on the eligibility criteria of the lenders you are borrowing money from.

Also Read: How to Get a Personal Loan with a Bad CIBIL Score?

3] Documents required for a personal loan without a PAN card

Personal loans in Mumbai can be sanctioned very quickly. You can get personal loans of up to ₹30 lakh approved in a time frame of 48 hours without any documentation provided your residence and office address is updated in your respective bank account. The following documents may be required when you apply for a personal loan.

For Identity Proof, if you don’t have a PAN card, any one of the officially valid documents given below will suffice:

• Aadhaar card
• Valid Indian passport
• Valid voter ID
• Valid driver’s license

Any 1 of the following for your address proof

• Aadhaar card
• Valid Indian passport
• Valid voter ID
• Valid driver’s license
• Electricity/Water/Gasbills dated within the last 2 months

For income proof, if you are a salaried applicant, you will need the last 3 months’ bank statements of your salary account in PDF format showing salary credits. If you are self-employed, you will require the last 3 months’ bank statements in PDF format.

4] How can you apply for a personal loan without a PAN Card?

If your relationship with the bank is good, and you repay your dues promptly without defaulting, the bank might consider or offer you a personal loan based on your history with them. Hence, keep these things in mind while applying for a personal loan without a PAN card:

• Establish a good relationship with your bank
• Pay all your dues consistently on time
• Maintain a high credit score
• Start with taking a small loan

However, you must always check the terms and conditions levied by the lender. If you don’t have a PAN card, your chances of getting favourable repayment terms might also take a hit.

The pandemic has compelled many banks and NBFCs alike to adopt a digital infrastructure to carry out online verification of the documents and processing of personal loans. Due to this much-needed change, banks and NBFCs can now offer online personal loans with much less waiting time compared to traditional offline channels.

Hence, individuals in desperate need of money during an emergency, who cannot avail of personal loans from their existing banks, can approach such lenders who offer end-to-end online loan processing.

Alternatively, you can also visit online financial marketplaces like Real Money Solutions to compare online personal loans offered by traditional banks, NBFCs, and new-age fintech/digital lenders.

5] Interest Rates & Charges for a personal loan without a PAN Card

Getting a loan without a PAN card is likely to have some impact on the interest rate as this loan is an unsecured one and the lender faces potential risk.

Personal loan providers usually offer an interest rate between 10%-25%. However, the rates vary from lender to lender and completely depend on the eligibility criteria i.e., income, credit score and repayment history.

To get a personal loan without a PAN card, it is better to apply with an NBFC or an online lender. Times have changed now and most lenders in India use data-driven algorithms and credit scores to determine the applicant’s creditworthiness and their ability to repay loans. This makes it easy to get a loan without a PAN card and is also the reason why people without a PAN card prefer to apply for a loan online.

If you compare to traditional banks, NBFCs and other online lenders have relatively simple eligibility criteria and lenient rules that do not make a PAN card a mandatory document to submit.

Other identity proofs or address proofs are more than enough to get a personal loan. Also, these lenders offer instant disbursals directly to your bank account. This is what makes them a favourite in the Indian financial lending space.

Also Read: How Do You Get a Personal Loan Without Bank Statements?

Conclusion

You never quite know when you might require money. Whether it’s an emergency or you are sending your kids abroad, personal loans are sanctioned without any collateral and are directly credited to your bank account.

Applying for a personal loan without a PAN Card is easy. However, it is advisable to apply for a PAN card so that you don’t have to struggle to apply for loans in the future.

For now, if you don’t have a PAN card and need a personal loan without it, you now know how to apply, where to apply, and what to expect after reading this article.