PAN Card is a mandatory requirement for transactions higher than Rs.50,000 (investments, deposits, etc.) and Rs.5 lakh (purchase of a vehicle, jewellery, etc.). It is also an essential document required when filing Income Tax Returns and is a compulsory OVD for KYC when opening an account or taking a loan.
Individuals can also now simply provide the 10-digit PAN when applying for a personal loan or opening an account instead of submitting a photocopy of the card.
As such, availing a personal loan without a PAN card can be a challenge as authorities use it to track the financials of an individual and check monetary frauds.
However, some lenders may be willing to offer loans without a PAN card as well.
In the absence of a PAN card, applicants have to submit other KYC documents, especially Aadhaar card. Other official documents with the applicant’s permanent address can also suffice when applying for a personal loan without a PAN card.
Income statements like the latest bank account statements are necessary to avail an online loan without PAN card. Lenders assess an applicant’s current and previous financial position with these statements.
Financial institutions can check his/her fixed monthly income and expenses to have a clear overview of repayment capacity.
It is also mandatory to submit the latest salary slips along with bank account statements. Those with a substantial monthly income often receive preference for the approval of a loan without a PAN card.
Individuals applying for instant money without a PAN card must also hold a CIBIL score of 750 or above. A higher score establishes an applicant’s creditworthiness. It also helps secure attractive interest rates on personal loans.
An applicant must also have a sound repayment history in the absence of a PAN card. Late payments and delinquencies can become an obstacle in this case.
A debt-to-income ratio or Fixed Obligations to Income Ratio (FOIR) is the percentage of an individual’s fixed monthly liabilities against his/her income. A ratio of 50% means that he/she spends half of the salary to meet recurring monthly expenses. As such, the disposable income is strained, making a new loan EMI payment a challenge.
Applicants must, thus, plan to lower their fixed monthly debts to improve their chances of availing of an easy loan without PAN card.
Complying with the above points can help individuals apply for a personal loan without a PAN card.
Applicants can approach NBFCs rather than traditional lenders if they don’t hold a PAN card. These lenders usually list less stringent eligibility and simplified minimum documentation processes.
Bajaj Finserv provides personal loans up to Rs.25 lakh with flexible repayment tenures extending up to 60 months. Individuals can apply online for the loan in a few steps only, with their essential details.