How to Apply for Personal Loan Without a PAN Card?

Getting a loan without a PAN card is possible if you can submit an alternate ID. With digital advancements in the financial sector, it has become easier to get credit. In fact, you can now apply for a loan on the lender’s website or a loan app without a PAN card.

While availing an online loan without a PAN card has become convenient and paperless, meeting the eligibility terms set by the lender is essential.

What is a PAN Card and When Do You Need It?

Your Permanent Account Number (PAN) is a 10-digit unique number given by the Income Tax Department to all taxpayers in India. The primary uses of the PAN card are listed below:

• It tracks financial transactions carried out by citizens, thus reducing tax evasion.
• PAN details must be shared when communicating with the Income Tax Department or paying income tax.
• It is a mandatory document that banks and financial institutions require if you wish to:

• Open a new bank account or Demat account
• Obtain a landline or mobile phone connection
• Acquire foreign currency or convert currency
• Apply for a loan
• Conduct bank deposits over ₹50,000
• Buy jewellery above ₹5 lakhs
• Make insurance payments above ₹50,000 annually
• Invest in property or buy land
• Apply for credit card or debit cards
• Purchase a vehicle
• The PAN card even serves as proof of age and identity

While a personal loan application requires the least documentation compared to other loan categories, most lenders require a PAN card. Using it, lenders check CIBIL scores and financial portfolios to approve loan requests. This card is linked to your financial profile, providing financial companies with details of the your creditworthiness.

The absence of such a key document can make the personal loan application process difficult. Does that mean you cannot apply for credit on the lender’s website or loan app without a PAN card? Not necessarily.

There are some options available to you:

• Submit other ID like your Aadhaar card, voter ID, ration card or passport 
• Attach income proof like bank statements or salary slips to showcase repayment ability
• For a loan of less than ₹50,000 loan, lenders may not need your PAN 

Steps to Apply for a Loan Without a PAN Card

If you are without PAN card, loan application need not be very different. All you need to do is:

• Step 1: Research the financial company’s eligibility criteria
• Step 2: Choose and apply for the loan
• Step 3: Share accurate personal and financial details
• Step 4: Wait for approval
• Step 5: Get the loan amount credited to your account

The key to smooth approval is to apply for a smaller loan amount and showcase your financial ability. 

Eligibility Criteria For Online Loan Without PAN Card

Here are the eligibility criteria for a personal loan without PAN card:

• Age – 18 to 57
• Income Proof – Bank statements and salary slips
• Repayment Threshold – Minimum salary of ₹15,000 is required
• Good Credit Score
• Indian Citizenship Proof
• ID Proof

Different Ways to Get a Loan without a PAN Card

The PAN card serves as a critical KYC document for financial institutions granting loans. Listed below are some ways to opt for an instant online loan without PAN card.

• Have a Good Relationship With Your Lender

If you have a bank account or have borrowed previously, this can help you get approval on loan without PAN Card. This is because the institution may have your financial records already and may not need you to submit more documents. 

In some cases, banks also offer pre-approved loans to their existing customers. Then, you don’t need to submit any documents for new loan applications. Regular loan payments and maintaining your account balance will build trust in your lender.

• Maintain a Strong Credit Score

Lenders rely on CIBIL reports to determine your creditworthiness. A CIBIL score of 750 and above must be maintained to improve your chances of personal loan approval. Timely payment of bills and debt clearance usually assures a good score.

• Aim for a Low Debt-to-Income Ratio

This signifies the ratio between your monthly debt and income. An ideal debt-to-income ratio would be 35% or below. To maintain a healthy ratio value, you must clear your existing loans at the earliest.

You must also ensure that your monthly EMI instalments fall maximum within the bracket of 30-40% of your total monthly income.

• Maintain Transparency With Your Lender

Doing this will help provide your lender assurance about your financial ability to repay the borrowed funds. Details that you can share with your lender include:

• Your monthly salary
• Rental income, part-time work income, etc.
• Bonus or work-related incentives received from your employer, etc.

• Clear All Your Credit Card Bills on Time

If you have a credit card with the bank you wish to get a loan from, clear all your outstanding bills before applying for a loan. Ensure that no bill payments are delayed or missed. Missed payments indicate an inability to handle finances prudently and adversely affect your chances of being granted a personal loan.

• Ensure You Meet the Lender’s Eligibility Criteria

Most lender have standard eligibility requirements, these are:

• You must be a citizen of India within the age range of 21 to 60 years
• You must be employed with your current company for at least six months
• You must have at least 12 months of experience in your current field of work
• You must be financially stable and draw a monthly salary (which meets your lender’s minimum salary requirements)

By meeting all these criteria, you can build trust and may get approval even with a PAN Card. 

• Submit Collateral or Apply With a Guarantor

You can negotiate with your bank to lend you money based on some security you provide as collateral. You can also include a trustworthy person as a guarantor when applying for your loan. While supporting your loan application, such an individual would be liable to repay your loan in the case of any default.

• Approach a Non-banking Financial Company (NBFC)

NBFCs offer Personal Loans with simpler norms for lending. They have minimal documentation and moderate eligibility requirements, making them ideal for instant requirements. 

If you want to get a loan without a PAN card, you may have to pay a higher interest. Some lenders may readily provide loans to borrowers without PAN Cards based on their Aadhaar Card and salary details.

Such deals, however, run the risk of being scams. It is important to research your options thoroughly. Getting a personal loan without a PAN card can be challenging but it is not impossible. 

If you are looking for easy-to-meet criteria and instant disbursal, apply for an instant cash Loan with Fibe. With the easy digital loan application process, you can get up to ₹5 lakhs on our Personal Loan App or by logging in to our website.

FAQs on Loan Without PAN Card 

Is PAN mandatory for cash payments?

A PAN Card is mandatory for all financial transactions exceeding ₹50,000.

What types of loans can be availed without a PAN card?

Most digital lenders and NBFCs allow you to apply for an instant loan without a PAN card if it is below ₹50,000. 

Do digital lenders provide loans without a PAN card?

You may be able to complete a without PAN card loan application by choosing digital lenders and providing alternate forms of IDs. These include your Aadhaar Card, passport, bank statements, ration card and more.