There may be times when your savings just aren’t enough to get you where you need to go financially. You should borrow money to bridge the difference. Credit, however, comes with its own set of complications. Is it hard to get a loan, then? A personal loan based on your PAN and Aadhaar card is available without collateral. These may be processed instantly.
But that’s not all. Instant personal loans on a PAN card are available at low interest rates and with few paperwork requirements. Let’s get acquainted with the importance of loans and how to obtain them with your Aadhaar and PAN.
PAN card and personal loans
Your capacity and history to make loan repayments are easily clear to a bank with a PAN card. You might ask if showing your PAN card is necessary when applying for a personal loan. The answer is yes.
Private lending organisations are the only places to go if you don’t have a PAN card and need a personal loan of 50,000 rupees. Private lending organisations still offer personal loans to those without a PAN card. Otherwise, PAN cards are widely used in India to assess borrower risk.
A loan application without a PAN card leads to rejection.
Without a PAN card, your application for a personal loan from a bank will be denied. This is regardless of how much money you need. Obtaining a personal loan in India requires a PAN card. This is due to regulations imposed by the country’s tax system.
Know the importance of a PAN card for a personal loan.
The government of India also gives every resident of India a permanent account number (PAN), which is an alphanumeric code of 10 digits. After the currency reform known as “demonetization,” it has become an even more vital card.
A PAN card is a unique identifying number. It is required for making financial transactions and submitting tax returns. For tax reasons, having a personal loan on a PAN card is essential. Having your PAN card information linked to your savings account is mandatory. You would be unable to establish a bank account at any financial institution in the absence of a PAN card.
When applying for a personal loan, a PAN card is also required. Obtaining a personal loan without a PAN card might prove difficult. As a result, a PAN card is required when applying for a personal loan. It is also required when making large purchases such as cars, staying in hotels, opening Demat accounts, purchasing foreign currency, and so on.
Why is a PAN card mandatory for a personal loan?
A borrower’s creditworthiness can be estimated from the information on their PAN card. A PAN card is required to be presented when applying for a personal loan of Rs. 50,000 or higher.
To complete the E-KYC verification process for a personal loan of Rs. 50,000 or more, a PAN card is required. It is impossible to get a bank loan, a debit or credit card, or even buy a car or jewellery without a PAN card. Submitting a PAN card is also required to move forward with real estate transactions, including buying, selling, building, or renting.
Furthermore, having a PAN card speeds up the approval process for a personal loan. It allows the lender to check your credit history and other financial elements. Both of these are required when applying for a personal loan of Rs. 50,000 or more.
If you apply for a personal loan in India and are unable to produce a PAN card, the loan application will likely be denied. This would hurt your credit score.
A PAN card is more essential than pay stubs and a bank statement when applying for a personal loan online. Although most lenders want either a pay stub or bank statement, others don’t.
Instead, a Personal Identification Number (PAN) card is required when applying for a personal loan. This is because it allays the lender’s concern that the borrower won’t be able to pay back the loan on time.
Uses of PAN
The PAN card has various applications. It’s a standard part of a wide range of formal processes that necessitate documentation. You may use the information on your PAN card to verify your identity. You can also keep track of your financial dealings.
The card may be used to prevent tax evasion. It provides the Income Tax Department with a record of your daily financial activities. If you want to buy a new home, get a home loan, or apply for a credit card, you will need to present information from your PAN card. PAN cards are primarily used to track financial transactions. They have many other applications as well.
Here are some of the uses of the PAN card:
- If you want to submit your income tax returns, you’ll need to provide the information from your PAN card. You may file your income tax return online by accessing the e-filing website. You have to enter your PAN information in the appropriate field.
- Making a deposit: Bank accounts are the standard for documenting monetary dealings. So PAN card information is required to create a bank account.
- Getting an application for a credit or debit card: When applying for a credit or debit card, a person’s PAN number is needed.
- A transfer of ownership occurs when a car is bought or sold. So you must also supply your PAN card information.
- Serves as evidence of identity: Owning a PAN card is vital for those who engage in a high volume of financial transactions. It is required in many official procedures.
- Loan/insurance application: There is significant risk involved for the bank in making loans or providing insurance. Banks examine the applicant’s financial transactions to see if they are qualified to lend money and the level of risk associated with doing so.
- To complete any real estate-related transactions, you will be asked to give your PAN information.
- A Permanent Account Number (PAN) card is required when exchanging Indian Rupees (INR) for foreign money.
Get fast approval on personal loans by applying today.
Personal loans allow you to take care of unexpected costs. They also help to get your finances back on track quickly. You can still get a loan even if you don’t have anything of value to put up as security. When you have the required paperwork, these personal loans are easy to obtain.
A personal loan on a PAN card is crucial to your financial well-being. With a valid PAN card in hand, you’ll have no trouble getting approved for a personal loan. If you want to increase your chances of getting a loan, providing a PAN card is a must. Contact a reliable loan expert, such as Piramal Finance, for a smooth experience.