How To Get a Personal Loan On A PAN Card?

how to get personal loan on pan card

In today’s fast-paced world, financial emergencies can arise at any time. when finances run dry, seeking help from relatives or friends for rent, overdue bills, groceries, or unexpected trip expenses can bring guilt. Whether it’s an unexpected medical expense, a sudden home repair, or consolidating debt, a personal loan can provide much-needed relief. And if you have a PAN card, you’re already halfway there to securing one.

personal loan

What is a PAN Card?

A Permanent Account Number (PAN) is a ten-digit alphanumeric identifier issued by the Income Tax Department of India. It’s essentially your financial identity card and is mandatory for various financial transactions, including applying for a personal loan.

Why is a PAN Card Important for Personal Loans?

A PAN card plays a crucial role in the personal loan application process due to several reasons:

1. Identity Verification: Your PAN card serves as a reliable proof of identity, helping lenders verify your authenticity and prevent fraud.

2. Creditworthiness Assessment: Lenders utilize your PAN card to access your credit history, which is a key factor in determining loan eligibility and interest rates.

3. Compliance with Regulations: The Income Tax Department mandates the use of PAN cards for various financial transactions, including personal loans, to streamline tax collection and prevent tax evasion.

Advantages of Using a PAN Card for a Personal Loan

Using a PAN card for a personal loan offers several advantages, including:

1. Ease of use: PAN cards are widely accepted as a form of identification, making the loan application process easier.
2. Minimal documentation: You typically need fewer documents with a PAN card loan.
3. No collateral: Personal loans are unsecured, so you don’t need to put up collateral.
4. Attractive interest rates: PAN card loans often offer competitive interest rates.
5. Fast disbursement: You can get your loan disbursed quickly.

PAN card loans have emerged as a popular option for individuals seeking quick and convenient access to funds. However, before taking this loan, it is crucial to understand the eligibility criteria that govern the accessibility of these loans.

Eligibility Criteria for a Personal Loan on PAN Card

To be eligible for a personal loan on a PAN card, you must meet specific criteria:

1. Age: You must be between 21 and 65 years of age.

2. Citizenship: You must be an Indian citizen or a resident of India.

3. Income: You must have a stable monthly income of at least Rs. 15,000 for salaried individuals or Rs. 25,000 for self-employed individuals.

4. Employment Status: You must be either a salaried employee with a minimum of six months’ service or a self-employed individual with a minimum of two years’ business experience.

5. Credit Score: You must maintain a good credit score, typically 650 or above, to increase your chances of loan approval and secure favorable interest rates.

Also Read: How to Apply for Pan Card Correction Online?

Documents Required for a Personal Loan on PAN Card

Along with your PAN card, you’ll need to provide additional documents to support your loan application:

1. Identity Proof: Aadhaar card, passport, driving license, or voter’s ID card

2. Address Proof: Aadhaar card, passport, driving license, or voter’s ID card

3. Income Proof: Salary slips for salaried individuals or income tax returns for self-employed individuals.

4. Bank Statements: Copies of bank statements for the previous three months

5. Employer Details: Employer’s name, address, and contact information

Steps to Apply for a Personal Loan on a PAN Card

1. Compare Lenders and Loan Options: Research and compare personal loan offerings from different lenders, considering factors like interest rates, processing fees, loan tenure, and eligibility criteria.

2. Check Your Eligibility: Use online eligibility calculators to assess your chances of loan approval and estimate the potential loan amount and interest rate.

3. Fill Out the Loan Application: Visit the lender’s website or branch and complete the loan application form, providing accurate and complete personal and financial information.

4. Submit Documents: Attach copies of the required documents mentioned above along with your PAN card.

5. Verification Process: The lender will verify your submitted documents and conduct a credit check to assess your creditworthiness.

6. Loan Approval and Disbursement: Upon successful verification and approval, the lender will disburse the loan amount into your bank account.

Navigating the loan approval process can be a bit tricky. So we have some practical tips to help you make smart moves and increase your chances of getting your loan approved.

Calculate Your Personal Loan EMI

Tips for Securing a Personal Loan on a PAN Card

1. Maintain a Good Credit Score: Regularly check your credit report and address any discrepancies or errors promptly.

2. Control Debt Utilization: Keep your credit utilization ratio, the percentage of your available credit that you’re using, below 30%.

3. Choose the Right Loan Amount: Borrow only the amount you genuinely need and can comfortably repay.

4. Negotiate Interest Rates: Don’t hesitate to negotiate interest rates with the lender, especially if you have a good credit history.

5. Repay on Time: Make timely repayments to maintain a good credit history and avoid late payment penalties.

A personal loan on a PAN card can be a valuable financial tool to meet your unexpected expenses. By following the guidelines and tips mentioned above, you can increase your chances of securing a personal loan on a PAN card and manage your finances effectively. If you are looking for a personal loan, Credmudra offers swift, pre-approved personal loans through licensed lending partners. Enjoy a paperless process, competitive rates, and full control with transparent details.

Also Read: Check PAN Card Application Status Online: NSDL and UTIITSL Portal


Here are some common questions about PAN card loans:

1. How Much Loan can I get on my PAN Card?

The amount of money you can borrow with a PAN card loan depends on your creditworthiness, income, and the lender. In general, you could get up to ₹20 Lakh.

2. How much CIBIL Score do I need to get a Loan?

You’ll need a minimum credit score of 650 to qualify for a personal loan.

3. How much Loan can I get on ₹15,000 Salary?

If you earn ₹15,000 per month, you could be eligible for a loan of ₹50,000 to ₹1,50,000. However, the amount may vary depending on the lender.

4. Can I get a Personal Loan without a PAN Card?

Yes, you can get a personal loan without a PAN card. However, you may need to provide additional KYC documents for verification.

5. Can I Get a loan on my Aadhar card?

Yes, many Indian banks accept Aadhaar as a valid identification for loans. However, the requirements may vary depending on the lender and the type of loan.

Also, Read: 10000 Loan Without a PAN Card in Few Clicks


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