How to Apply for an Instant Personal Loan Without a PAN Card?

Published on: 21 December 2021

Modified on: 10 April 2023

Highlight: If you are wondering, is it possible to get a personal loan in an emergency situation without a pan card? The answer is YES! It is possible, here’s how.

With the advent of improved banking policies, availing of an instant personal loan online is easier than ever. The application process of personal loans is convenient, paperless, and online. Personal loans serve as a handy source of immediate funds, especially during emergencies. What if you urgently needed funds but did not have a PAN card? Would you be able to get the necessary funds for your immediate requirements? Is it possible to avail an instant loan without a pan card in India? The personal loan application process would be slightly challenging in this case. Let us take a closer look at the options available to you without a PAN card.

A Permanent Account Number (PAN) is a ten-character long alphanumeric financial identity number. It is 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 need to 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 INR 50,000, 
• Buy jewelry above INR 5,00,000
• Make insurance payments above INR 50,000 annually
• Invest in property or buy land
• Apply for credit or debit cards
• Purchase a vehicle, etc.
• The PAN card even serves as proof of age and identity.

Personal loans are unsecured forms of loans that do not require any form of collateral to be submitted by the borrower. A personal loan application requires the least documentation compared to other loan categories. The law requires all loan seekers to provide PAN card details when applying for a loan.

Financial lending institutions like banks check applicants’ CIBIL scores and financial portfolios to approve loan requests. A PAN card monitors an individual’s financial transactions, thus providing banks with details of the person’s creditworthiness. The absence of such a key document will make the personal loan application process difficult. Does that mean you cannot avail of a personal loan without a PAN card? Not necessarily. There are some options available to you.

• If you have misplaced the card, lenders might approve your loan if you submit your 10-digit PAN number.
• If the loan amount is below INR 50,000, lenders might grant you the loan.

The above conditions vary between lenders.

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

• Continue a good functioning relationship with your lender / financial institution: Having an active savings bank account with the bank you plan to borrow from is a good idea. If you have borrowed from this bank previously and ensured timely repayments, the bank will consider your loan application. Sometimes, banks also pre-approve previous borrowers, such that no documents are needed for new loan applications. Regular loan payments and maintaining your account balance sensibly will build trust in your lender towards you.

• Maintain a strong credit score: Financial institutions count on CIBIL reports to determine which prospective borrower they will grant a personal loan. A CIBIL score of 750 and above needs to be maintained to improve your chances of personal loan approval significantly. Timely payment of bills and debt clearance usually assures a good score. A robust credit score improves your chances of obtaining an instant loan without a pan card.

• Aim for a low debt-to-income ratio: This signifies the ratio between your monthly debt and monthly 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 installments fall maximum within the bracket of 30-40% of your total monthly income. Most financial institutions consider a 15% debt-to-income ratio as ideal.

• Maintain transparency about all sources of income 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 hold a credit card with the bank you wish to borrow from, clear all your outstanding bills before applying for a loan. Ensure that no bill payments are delayed or missed. Missed payments indicate the inability to handle finances prudently and adversely affect your chances of being granted a personal loan. 

• Ensure you fulfill your financial lender’s Loan Eligibility Criteria: Most financial institutions have standard eligibility requirements for loan eligibility. Broadly these are:

• You must be a citizen of India within the age range of 21 to 60 years.
• It would help if you were 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 and 
• You must be financially stable and draw a monthly salary (which meets your lender’s minimum salary requirements). 

• Submit collateral or bring 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, this individual would be liable to pay in case of any default.

• Approach a Non-Banking Financial Company (NBFC’s): NBFCs have simpler norms for lending with minimal documentation and moderate eligibility requirements. Check for Personal Loan from Fibe.

When borrowing without a PAN card, you might have to pay a higher interest rate on your loan amount. Some lenders will readily provide loans to borrowers without Pan cards based on their Aadhar card and salary details. Such deals, however, run the risk of being scams. It is important to research your options thoroughly before approaching such lenders. An instant loan without a Pan card  is challenging but not impossible. During the personal loan application process, the right efforts will help you avail of an instant personal loan in your hour of need.

With the easy and digital loan application process in place, access to having instant funds is just a tap away. 

Apply for an instant loan today at Fibe and take a step closer to walking towards financial freedom.

Download the personal loan app here, or log in to our website and be a part of the #OneSmallStep experience