People frequently find themselves in need of fast, easy loans in the fast-paced world of finance in order to fulfill a variety of financial obligations. While traditional loans require a lot of paperwork and drawn-out approval procedures, PAN card loans are a lesser-known alternative that can simplify your life. We’ll discuss PAN card loan in this blog, including what they are, how they operate, and why they might be the best option for your financial circumstances.
PAN Card Loans Overview
|Type of employment
||Salaried or self-employed
||At least 650
||Monthly income of 15,000 or more is required
PAN Card Loans 50,000 – Eligibility Criteria
- Age: When submitting an application for a loan, you have to be at least 21 years old. There might be a higher minimum age requirement set by some lenders.
- PAN Card: You must have a current Permanent Account Number (PAN) card that was issued by the Indian Income Tax Department. An essential document for confirming your identity is your PAN card.
- Income: Usually, lenders have a minimum monthly income requirement, though this can change. Make sure your income is above the ceiling set by the lender. It might be necessary to provide evidence of income, such as pay stubs, bank statements, or income tax returns.
- Employment Status: To be eligible for this loan, you must have a steady source of income, whether you work for yourself or are employed. Verification of employment or proof of business may be required by lenders.
- Credit Score: Having a good credit score (typically above 650) greatly increases your chances of loan approval and may result in lower interest rates, even though some lenders may provide loans with lower credit scores.
- Indian Citizenship: To be eligible for this kind of loan, you must be a citizen of India. Different loan options may be available to non-resident Indians (NRIs).
How to Apply for a PAN Card Loans?
- Go to the preferred lender’s website or download the app.
- Provide a few simple details to see if you qualify.
- Decide on the loan term and amount.
- Enter your PAN card and send in your filled-out application to finish the e-KYC process. More documentation may be required by certain lenders.
- Create an autopay account and link it to your bank. Your bank account will receive the funds after your application is approved.
Interest Rate on PAN Card Loans
||Between 9% p.a. And 45% p.a. (generally)*
||Between 0.5% to 2.5% of the total loan amount*
||Could be between 2% and 5% of the balance*
|Late Payment Fee
||1-2% of the monthly installment amount
PAN Card Loan ₹50,000 – Documents Required
- PAN Card
- Income Proof
- Address Proof
- Credit Report
- Bank Statements
- Employment Proof
- Loan Application Form
- Passport-size Photographs
Features and Benefits of a PAN Card Loan
- No Collateral Required: An unsecured loan is a personal loan on a PAN card, also known as a PAN card loan. Because of this, you won’t need to pledge an asset in order to obtain one, making these loans more accessible and convenient.
- Quick Disbursal: Loans for PAN cards are typically processed, approved, and disbursed rapidly by lenders because PAN is used to verify e-KYC and provide access to crucial employment, tax, and financial records.
- Flexible Loan Repayment Tenure: Both the tenures and the terms of loan repayment are typically more flexible and favorable. The tenure could typically last anywhere from a few months to a few years.
- Can Be Used for Any Purpose: Any legitimate purpose may be funded with a PAN card loan, including marriage, major purchases, medical costs, and travel expenditures.
Before Applying for a PAN Card Loan Remember Some Things
- Compare Lenders: You could evaluate lenders according to their reputation, approval, and disbursal times, fees and charges, interest rates, loan amounts, and other factors.
- Check Your Credit Score: Be sure you meet the minimum credit score requirements before applying for a PAN card loan. With a low credit score, you might still be eligible for a loan from some lenders. Nevertheless, they might approve a smaller amount than what you had applied for or apply higher interest rates.
- Consider Your Repayment Capacity: If you currently have more than one loan that is outstanding, you might want to reconsider applying for another one. Make a budget and approach loan repayment methodically as well. One possible approach would be to pay off the loan with the highest interest rate first, followed by the loan with the next highest, and so on. Additionally, guarantees that you have a reliable source of income to cover your living expenses and debts.