How to get a personal loan with a PAN card

When you apply for a personal loan, PAN card-based verification plays a absolutely crucial role in the approval process. Most banks and NBFCs (Non-Banking Financial Companies) consider it a mandatory document during the loan approval process. It helps establish your complete credit profile, allowing lenders to assess your eligibility accurately and offer you the best possible terms.

With a valid PAN card and a steady income source, you can get a personal loan approved swiftly, often with instant or same-day disbursal. If you're looking for a hassle-free way to borrow money for any legitimate purpose, opting for a PAN card loan could be the smartest financial move you make this year.

Why is a PAN card important for a loan?

Your PAN card is much more than just a tax document – it's essentially your financial fingerprint! It's linked to every single bank account, credit card, investment, and loan that you have ever held. This makes it incredibly valuable for lenders and here's why:

Your PAN helps in the comprehensive monitoring of your credit-related activity by all major credit bureaus across India. Loan providers require your PAN card since it enables them to instantly access your complete credit information reports and credit scores from bureaus such as CIBIL, Experian, and Equifax to assess your eligibility and loan repayment capacity accurately.

Why this matters: The Indian financial system can essentially track and verify every cash inflow and outflow into your bank accounts thanks to your PAN card. This creates a complete, transparent picture of your financial behavior over time.

When you submit your PAN card during loan application, lenders can instantly check the entire financial history associated with your PAN. If they find no irregularities, no defaults on previous loans, and discover a solid repayment history, it can significantly boost your chances of approval for a personal loan on PAN Card.

How much personal loan can you get with a PAN card?

The loan amount you can get with your PAN card depends on several key factors that lenders carefully evaluate:

Credit score

A good CIBIL score (685 or higher) significantly increases your chances of getting an instant loan on PAN card with much better terms, higher amounts, and lower interest rates. If your score is above 750, you're in the excellent category and can expect premium offers.

Monthly income

A stable, consistent monthly income not only boosts your overall eligibility but may also help you secure a higher loan amount. Lenders typically approve loans where the EMI doesn't exceed 40-50% of your monthly income.

Age and employment stability

Lenders prefer applicants aged between 21 years to 80 years with steady jobs (at least 1-2 years in current role) or consistent business income for self-employed individuals. Job stability indicates reliable repayment capacity.

Existing debts and obligations

Having fewer current EMIs or outstanding loans significantly improves your chances of getting approved for a higher amount. Lenders look at your debt-to-income ratio to ensure you can comfortably handle additional EMI burden.

PAN card requirement and verification

Most modern lenders need your PAN for quick verification and instant background checks. It helps speed up approval for instant loans on PAN card by providing complete financial transparency.

Interest rate on personal loan with a PAN Card

Before starting your loan application, it's crucial to check the current personal loan interest rates and make a comprehensive note of all the associated charges with the loan. This helps you plan your repayment comfortably and avoid any surprises later.

Factors that affect your interest rate:

• Credit score: Higher scores (750+) typically get rates 2-4% lower than average
• Income level: Higher, stable income can qualify you for premium rates
• Employment type: Government employees and MNC employees often get better rates
• Loan amount and tenure: Larger amounts for shorter tenures may get better rates
• Existing relationship: Existing customers often get preferential pricing
   

Smart calculation tool: You can use our comprehensive interest calculator to get a detailed breakdown of your loan repayment in terms of principal and interest components. This helps you understand exactly how much you'll pay over the entire loan tenure.
 

Pro tip: Even a 1% difference in interest rate can save you thousands of rupees over a 5-year loan tenure. It's worth comparing offers from multiple lenders

Here are some of the additional features and benefits of getting a personal loan:
 

No collateral needed: There is no requirement for collateral as personal loans are unsecured forms of lending, therefore you are not required to pledge any of your precious possessions as security.

Quick disbursal: Once your loan application is approved, you can have the funds in your bank account in as little as 24 hours in most cases.

Multipurpose use: You can use it to pay for your home renovation or higher education, or even cover unexpected medical costs.

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