Steps to Get an Instant Personal Loan with a PAN Card?

What is a PAN Card? 

A unique 10-digit alphanumeric identification is duly issued by the Income Tax Department of India. The card is a valid identification proof that records all your financial information plus your details. All your financial transactions are recorded on your PAN and your tax records are noted. As this is valid proof accepted universally, A PAN card is a handy tool for applying for a personal loan.

Why is a PAN Card Essential for Personal Loans? 

Here is why you need a PAN card for your loans. 
 
1. Identity Verification; As identity proof, you can present this as a legitimate document to apply for a loan.  
2. Credit Assessment: The lenders usually make use of a PAN number to know about the credit history of an applicant.
3. Regulatory Compliance: The apex financial body of India, the Reserve Bank of India (RBI) has made it mandatory for all transactions related to finances above ₹50,000.
4. Minimizing Fraud: PAN Card serves as a handy tool for all lenders to screen and verify the financial health of an applicant, to give a loan.

Eligibility Criteria for Getting an Instant Personal Loan with a PAN Card 

To apply for a personal loan using a PAN card, you must meet the following eligibility criteria: 
 
- Age: Generally, applicants must be between 21 to 60 years of age. Some lenders may have a different age range. 
- Employment Status: Both salaried and self-employed individuals are eligible. 
- Income: A minimum monthly income, usually around ₹15,000 to ₹25,000, depending on the lender. 
- Credit Score: A good credit score (usually 700 and above) improves the chances of loan approval. 
- Indian Resident: The applicant must be a resident of India. 

How to Apply for an Instant Personal Loan with a PAN Card? 

You can easily apply for a loan by referring to these simple steps.

1. Check Eligibility: Check if the eligibility criteria of the financial lender match of your expectations. Your credit score, your income, age, etc can help you figure out.
2. Compare Lenders: It is always wise to compare your lenders, whether they are banks or NBFCs. You can check their interest rates, eligibility benchmarking, and other details to make an informed choice. 
3. Visit the Lender’s Website or App: Fill out an online application or visit their website to initiate your eligibility process, 
4. Fill Out the Application Form: Your personal details like your name, address, proof of income, loan amount, etc should be filled out.
5. Submit PAN Card for Verification: Upload your PAN number so that the lender can verify your details and financial history.
6. Upload Additional Documents: Any additional documents like address proof, bank statements, salary slips, etc should also be provided as requested by the lender. 
7. Wait for Approval: Upon submission, wait for the financial institution to come back with the status of your application. If all your documents are in place, it shall be done very quickly. If you want quick processing, you can visit the branch of your lender physically and request an early approval of your application.
8. Receive Funds: It usually takes very little time to transfer the loan amount into your bank account.

Tips to Increase Your Chances of Getting an Instant Personal Loan 

1. Maintain a Good Credit Score: Any score above 700 is generally considered a good credit score. Don’t forget to pay your credit card bills and EMIs on time to maintain a good score

2. Keep Documents Ready: Keep your latest and valid documents handy for your application process to speed up.

3. Choose the Right Lender: You can do your own research on the eligibility criteria of various financial bodies. You can pick up the one that suits your requirements.

4. Apply for an Appropriate Loan Amount: Always assess your repayment capacity before applying for any loan amount. Make sure the amount requested should be easily repayable by you.

5. Avoid Multiple Loan Applications: Don’t fall into the temptation of applying to multiple lenders simultaneously. It gives a signal to your lender that screams desperation and lack of confidence in one’s financial health.

Common Mistakes to Avoid When Applying for a Personal Loan 

- Applying Without Checking Eligibility: Always check the eligibility criteria before applying to avoid rejection. 
- Ignoring the Fine Print: Read the terms and conditions carefully, including fees, penalties, and repayment terms. 
- Not Comparing Lenders: Interest rates and terms can vary significantly. Comparing lenders can save you money. 
- Applying with a Poor Credit Score: A low credit score reduces approval chances. Work on improving your score before applying.

Benefits of Getting an Instant Personal Loan with a PAN Card 

- Quick Processing: With minimal documentation and online verification, loans are processed quickly. 
- Convenience: Apply from the comfort of your home without visiting a branch. 
- No Collateral Required: Most personal loans are unsecured, meaning no need to provide collateral. 
- Flexible Repayment Options: Choose a repayment tenure that suits your financial situation, usually ranging from 12 to 60 months. 
 
Getting an instant personal loan with a PAN card is a straightforward process that offers quick access to funds with minimal documentation. By understanding the eligibility criteria, keeping necessary documents ready, and following the tips provided, you can improve your chances of getting your loan approved quickly. Always remember to choose a lender that best suits your needs, and read all terms and conditions carefully to avoid any surprises later. 
 
By following the steps outlined in this blog, you can ensure a smooth and efficient loan application process, providing you with the financial support you need without unnecessary delays.