Is it possible to get a personal loan without a PAN card?
Your PAN card is an essential document for several transactions. You have to submit it for any investment, deposit or transaction above Rs. 50,000 or when buying vehicles or jewellery above Rs. 5 lakh. Similarly, to open a bank account, apply for a apply for a personal loan or file tax returns, you have to submit your PAN card.
Is a PAN Card mandatory for personal loans?
A PAN card is a crucial document for availing of a personal loan, as it helps lenders verify an applicant’s financial history and tax records. Most banks and NBFCs mandate it for loan approvals. However, some lenders offer a loan without PAN card, but with alternative documents like Aadhaar, Voter ID, or salary slips.
For an instant loan without PAN card, borrowers may need to meet stricter eligibility criteria, such as a high credit score or an existing relationship with the lender. These loans are often available through digital lending platforms with minimal paperwork. However, interest rates may be higher due to increased risk.
To improve approval chances, applicants should maintain a good credit profile and provide valid identity and income proof. While a PAN card simplifies the process, alternative options exist for those without one.
How to get an instant personal loan without a PAN card
It’s possible to apply for an instant personal loan without a PAN card, though you’ll need to provide alternative identification documents. Lenders like Bajaj Finance may accept other forms of identity proof, such as your Aadhaar card, voter ID, or passport. Additionally, they may require you to meet certain eligibility criteria, such as a stable income, good credit score, and valid bank details. You may also be asked to submit income proof and address verification documents. Always check the specific requirements of your chosen lender before applying.
Eligibility criteria for a personal loan without PAN card
While eligibility criteria for online loans without a PAN card may vary, some common requirements include an alternative identification document, stable income proof, and valid address proof. Lenders may also consider credit history and employment details. Research lenders with flexible criteria and inquire about specific requirements for PAN card alternatives.
Some common eligibility criteria for a personal loan include:
- Employment type
- Work experience
- Income
- Nationality
- CIBIL Score
- Credit history
Documents required for a personal loan without PAN card
Typically, you can’t avail of a loan without submitting your PAN, as authorities use it to track financial transactions and prevent fraud. Know the documents required for a personal loan. However, some lenders do extend a loan without PAN. Should you require it, follow these tips.
- Submit other necessary documents, especially your Aadhaar card and permanent address proof.
- Salary slips and bank account statements provide lenders with an accurate picture of your past and present financial position and repayment ability. A substantial monthly income will help you get a personal loan without a PAN card.
- A low fixed obligation to income ratio (FOIR) is best. It shows that you have sufficient funds to repay the loan after paying all your fixed monthly obligations. If your FOIR is over 50%, reduce it before applying for a personal loan.
- A CIBIL score of 685 or higher or more is crucial for loan approval, as it emphasises your creditworthiness. Moreover, it can help you secure better interest rates on personal loans.
These measures can help you get a loan without PAN. To make up for an absent PAN card, ensure that you adhere to all other eligibility and documentation guidelines. Also, approach an NBFC rather than a bank, as NBFCs have simple eligibility criteria and minimal documentation requirements. For instance, Bajaj Finserv offers personal loans of up to Rs. 55 lakh online. You can apply by submitting only essential details. You can also use our personal loan EMI calculator to calculate your monthly payments in advance.
Benefits of applying for a loan with a PAN card
Faster approval – A loan without documents such as a PAN card is usually a pre-approved offer. This can help when you need funds urgently without a long application process.
Paperless process – Not having to submit documents can significantly reduce the application time for loan.
Quick disbursal – A pre-approved loan is usually disbursed much quicker than a regular personal loan, since the checks for creditworthiness are already done by the lender.
How to apply for personal loan online without PAN card
To apply for a personal loan online
- Provide identification documents like PAN card, Aadhaar, or voter ID.
- Complete the online application with accurate details, including income proof and address.
- Verify eligibility, submit required documents, and await approval.
Tips to apply for a loan without PAN Card
Following are the tips to apply for a personal loan:
- Research lenders accommodating simple eligibility criteria.
- Ensure accurate personal and financial details in the application.
- Highlight stable income and a good credit history.
- Consider smaller loan amounts initially to enhance approval chances.
Conclusion
While a PAN card is a vital document for financial transactions, some lenders offer online loan without PAN card by accepting alternative identification and income proof. Ensuring a strong credit score, stable income, and low FOIR can improve your chances of approval. To secure quick funding, it is advisable to apply for a personal loan with a reputed lender that offers minimal documentation and hassle-free processing. Always compare options to find the best terms for your financial needs.
Frequently asked questions
Faster application and disbursal processes are some of the benefits of a loan that does not require you to submit documents such as a PAN card. Usually, such loans are only given through pre-approved offers to borrowers that have an existing relationship with the lender.
The disbursal time for any kind of loan differs from lender to lender. It can range from a few hours to some days.
A PAN card is often required for applying for a loan. However, having a PAN card generally improves approval chances and facilitates seamless processing. Verify specific requirements with lenders, as policies can vary. Always provide accurate identification and financial details during the loan application process.
While some lenders may accept alternative IDs, obtaining a personal loan without a PAN card and salary slips can be challenging. Explore lenders with flexible criteria or consider applying for smaller amounts. Provide alternative identification documents and additional financial proof to enhance eligibility. Verify specific requirements with potential lenders.
The loan amount you can get depends on factors like your credit score, income, and the lender's policies. Typically, lenders assess your repayment capacity before approving a loan. To determine your eligibility and potential loan amount, consult with the lender, considering your financial situation and their specific criteria.
Yes, interest rates for personal loans vary among lenders. They depend on factors such as your credit score, income, and the lender's policies. Higher credit scores often secure lower interest rates. Comparing offers from different lenders helps you find the most favourable terms for your personal loan.
Yes, you can submit your Aadhaar card as an ID proof if you do not have a PAN card. Many lenders accept Aadhaar for identity verification when applying for loans. However, some financial transactions may still require a PAN card for approval.
Taking a personal loan without providing a PAN card may lead to higher interest rates, limited loan amounts, stricter verification, and potential delays in the approval process.
