How to Apply for a Personal Loan without PAN Card?

With an ever-increasing cost of living, an individual may be forced to take loans to meet daily demands. Besides this, there are many people who wish to upgrade their lifestyle. In case of a shortage of funds, they are attracted to loans. Some loans require a lot of documentation, while others, like a personal loan, is readily available.PAN card details are needed while sanctioning a personal loan. Most banks and financial institutions give personal loans, and they already have the PAN card details of all their customers. It is mandatory to submit a copy of a PAN card wherever financial transactions are made. However, obtaining a personal loan without a PAN card may be a task.

A permanent account number, which is popularly known as a PAN card. It is one of the essential documents needed today. The PAN card is an important Government ID document in India which is issued by the Income Tax Department of India. The main aim of the PAN card was to prevent people from evading taxes. Earlier, the PAN card was used prevalently to file income tax returns. However, these days it is mandatory to submit a copy of a PAN card in all matters involving financial transactions.

A PAN card is a must for every citizen of India. It reflects the credibility of the person. A PAN card is necessary to create a good impression of the person. These days it is needed for almost everything. A PAN card is needed for any deposits above Rs. 50,000. A PAN card copy must be submitted wherever KYC (Know Your Customer) is required. For instance, opening a bank account, investing in mutual funds, opening a demat account, applying for a credit card , foreign exchange and applying for a loan etc.

A personal loan is an unsecured loan which does not require any guarantor. It is also called a consumer loan or a multi-purpose loan, as this amount can be used for any purpose. A person who needs funds on an urgent basis is easily attracted to a personal loan. This is so because the funds on approval of a personal loan are deposited in the person's bank account immediately. One doesn’t need to keep any collateral to obtain a personal loan. It is one of the most readily available loans in the market today. Many banks and financial institutions offer personal loans due to the quick processing time.Usually, banks approach their account holders for loans after analyzing criteria like employment history, credit score, capacity to repay loans, income level and profession etc., if satisfied. Then they offer pre-approved personal loans to their customers.

There can be an instance where an individual who has applied for a PAN card needs immediate money for some emergency. When faced with such a situation few points to remember that can come in handy in such times of need are:

1. Always try to maintain a high credit score. Maintaining a high credit score increases the chances of loans being approved and sanctioned fast.
2. If a personal loan is taken from a financial institution or any other lender, then a bank statement of the last 3 months can be submitted. Submitting the bank statement will help the lender or financial institution with financial assistance.
3. Try to approach money lenders who are less stringent with money matters.
4. Instead of a PAN card, utility bills like electricity bills or landline bills etc. can be provided to the lender as an alternative identity proof. It may not work with some lenders, but some may agree with this alternative.
5. If the person needing a personal loan has a previous stable loan repayment history, it may work in their favor.

Before applying for a personal loan without a PAN card, one should check eligibility. The eligibility criteria are slightly different for a salaried employee and a self-employed individual.

Personal Loan Eligibility criteria for a self-employed person

1. The applicant's age should be between 21 to 65 years.
2. The minimum profit from the business should be Rs. 15,000.
3. The income of the individual should be directly credited to their bank account.
4. The credit score should be a minimum of 600 or above.

Personal Loan Eligibility criteria for a salaried person

1. The salaried applicant’s age should be between 21 to 60 years.
2. The minimum salary of the person in -hand should be Rs. 13,500.
3. The salary of the individual should be credited directly to the bank account.
4. The credit score should be a minimum of 600 and above.

Also Read: Looking for Getting a Lower Interest Rate on Your Personal Loan? Know these 4 Factors

1. Aadhaar card of the applicant
2. Voter ID of the applicant
3. Passport of the applicant
4. Driving License of the applicant

1. Aadhaar card of the applicant
2. Voter ID of the applicant
3. Passport of the applicant
4. Driving Licenseof the applicant
5. Utility bills can be electricity bills, landline bills, gas bills or water bills. The paid bills for the previous 3 months will be required.

1. Salaried individuals will be required to submit the bank statement of the salary account for the last 3 months. The salary account statement should be in PDF format and should show that the salary is being credited to the applicant's account.
2. Self-employed individuals must submit the bank statement for the last 3 months. This bank statement should be in PDF format.

1. Identity proof: A PAN card is the most sought-after identity proof. However, in its absence, any one of the other documents that can be used as identity proof are:
2. Address proof: Any one of the following can be used:
3. Income proof:

A person who doesn’t have a PAN card and desperately needs money will only apply for a personal loan . Under such circumstances, there are chances of the processing fees and the rate of interest being on the higher side.Also Read: Paperless Loans: Get Personal Loans without Documents

1. Compare the various money lenders and financial institutions and check their lending criteria.
2. Search for lenders who give personal loans without a PAN card. Also, search the apps which give personal loans without a PAN card.
3. Calculate the charges (processing fees and interest rate) that have to be paid to obtain a personal loan without a PAN card.
4. Choose the personal loan amount needed and study the tenure and the repayment schedule.
5. Apply online or offline, whichever is convenient, along with all the necessary documents.
6. Once approved, get the money deposited directly in the bank account.

Some of the loan apps known for disbursing personal loans in which a PAN card is not required are:

1. Dhani : This is one of the best apps for obtaining a personal loan of up to Rs. 15 lakhs. This app does not require the applicant to submit a copy of a PAN card.
2. Money Tap : This app allows the applicant to avail of a personal loan of Rs. 3,000 to Rs. 5 lakhs.
3. Kreditbee : This app allows a personal loan of up to Rs 1 lakh without providing a PAN card.
4. Pocketly : This app allows a personal loan between Rs. 500 and Rs. 10,000. The applicant does not need to provide a PAN card.
5. Stashfin : This app allows an instant personal loan of up to Rs. 5 lakhs without providing a PAN card.
6. Rupeelend : This app allows a personal loan of up to Rs 1 lakh. The applicant does not need to provide a PAN card.
7. mPokket : Through this app, a person can get a minimum personal loan of Rs 500, and there is no maximum limit on the personal loan that can be availed. The applicant does not need to provide a PAN card.
8. CASHe : The applicant can get a personal loan of up to Rs. 2 lakhs without providing a PAN card.
9. Indialends : This app disburses an instant personal loan of up to Rs. 50 lakhs. The applicant does not need to provide a PAN card.

1. First, check the lender's app or the website.
2. All the relevant information (that is needed by the apps or sites giving personal loans) can be provided once the person (borrower) is satisfied.
3. After this, they will inform about the eligibility.
4. Only some options will be given after determining the person's eligibility. Based on this, the person can choose the loan amount and the tenure.
5. All the necessary documents must be uploaded.
6. These documents are used for verification purposes.
7. If the person qualifies and is selected for a personal loan, the loan amount will be credited directly to the borrower’s bank account.
8. This entire process is done within a day after the submission and verification of the loan agreement.

To avail of a personal loan without a PAN card can be a huge task. However, it is not impossible to get one. It is just that a person may have to do a lot of running around to find lenders. If lucky, lenders can be found easily. Otherwise, it may be quite tedious for the person(borrower).The lenders may not give a lot of importance to the submission of a PAN card. They will check the credit score of the borrower. In most cases, the lender would prefer a credit score of more than 750. To get an instant personal loan, the borrower's debt-to-income should be on the lower side.All said and done, having a PAN card while applying for a personal loan is always better. Every individual should possess a PAN card. If any person does not have one, then they should immediately apply for a PAN card.