fbpx

How to Get a Personal Loan Without a PAN Card

In India, applying for a personal loan is often seen as a tedious process due to extensive documentation requirements. One of the key documents typically required is the PAN (Permanent Account Number) card. But what happens if you don’t have a PAN card? Can you still apply for a personal loan? The answer is yes. While a PAN card is commonly requested for identification and tax verification, there are alternative ways to secure a personal loan without a PAN card. This blog will explore these alternatives, explain the processes, and help you understand how to borrow with ease.

Why is a PAN Card Typically Required?

A PAN card acts as a crucial financial identifier in India. It allows lenders to:

  • Verify your tax status.
  • Keep track of large financial transactions.
  • Comply with legal regulations.

However, not everyone in India has a PAN card. Individuals who are self-employed, rural residents, or students may face challenges in providing one. For such individuals, lenders have started accepting other documents as substitutes for a PAN card.

Can You Get a Personal Loan Without a PAN Card?

Yes, you can! Several banks and Non-Banking Financial Companies (NBFCs) in India offer personal loans without it, provided you meet their alternative documentation requirements. Let’s delve into the available options.

Alternative Documentation for Personal Loans

If you do not have a PAN card, lenders might ask for other documents to assess your identity, address, and financial stability. Here’s a list of alternatives that are commonly accepted:

Aadhaar Card

An Aadhaar card is a widely accepted form of identification and address proof in India. Many lenders now allow Aadhaar-based verification for personal loans.

Voter ID Card

Your Voter ID card can also act as proof of identity and citizenship. This document is especially useful for those who don’t have a PAN card.

Driving License or Passport

Both of these documents can serve as proof of identity and address. Some lenders may also accept them in lieu of a PAN card.

Bank Statements and Salary Slips

To assess your financial stability, lenders often require:

  • Bank statements for the last six months.
  • Salary slips or income proof for salaried individuals.

Form 60

For those who do not possess a PAN card, submitting Form 60 is a legal alternative. This form declares that you do not have a PAN card and provides basic information about your income and financial transactions.

Steps to Apply for a Personal Loan Without a PAN Card

Research Lenders

Not all lenders offer loans without a PAN card. Research banks and NBFCs that cater to this need. Digital lenders are often more flexible.

Prepare Alternative Documents

Gather the documents listed above to meet the lender’s requirements.

Submit Form 60

If required, fill and submit Form 60 accurately. Ensure that your income and other details are consistent with your supporting documents.

Verify Your Eligibility

Lenders may evaluate your credit score, income, and repayment capacity to determine your eligibility. Having a good credit score can increase your chances of approval.

Choose the Loan Terms

 Compare interest rates, tenure, and processing fees among lenders. Opt for terms that suit your financial situation.

Apply Online or Offline

Most lenders offer online application facilities. Fill out the form, upload the necessary documents, and await approval.

Benefits of Personal Loans Without PAN Card

  • Accessibility: People from rural areas or informal employment sectors can still access loans.
  • Flexible Documentation: You can use alternative proofs like Aadhaar or Voter ID.
  • Quick Approvals: With digital lending platforms, the process is often fast and hassle-free.
  • Financial Inclusion: It bridges the gap for those who do not possess formal financial documentation.

Things to Keep in Mind

  • Higher Interest Rates: Some lenders may charge higher interest rates for loans without a PAN card due to perceived risk.
  • Loan Amount Limits: The amount you can borrow might be capped.
  • Credibility of Lender: Always ensure the lender is credible and authorized by the Reserve Bank of India (RBI).
  • Timely Repayments: Paying your EMIs on time helps build your credit score, making it easier to borrow in the future.

Conclusion

Getting a personal loan without a PAN card is not only possible but increasingly common as financial institutions adapt to the diverse needs of borrowers in India. While a PAN card simplifies the process, lenders offer various alternatives to ensure financial inclusion for all. By submitting alternative documents like Aadhaar, Voter ID, or Form 60, you can successfully secure a loan that fits your requirements.

So, whether you’re a student, self-employed, or someone from a rural area, don’t let the lack of a PAN card stand in your way. Explore your options, choose a reliable lender, and take a step closer to achieving your financial goals.

FAQs About Personal Loan without PAN Card

  • Can I apply for a personal loan online without a PAN card?

    Yes, many digital lenders accept online applications without a PAN card. You will need to provide alternative documents and may have to submit Form 60.

  • Is Form 60 mandatory for personal loans without a PAN card?

    In most cases, lenders require Form 60 if you don’t have a PAN card. This serves as a declaration that you are not liable to hold one.

  • What is the maximum loan amount I can get without a PAN card?

    The loan amount varies by lender and your financial profile. Typically, loans without a PAN card may have lower upper limits.

  • Can I get a personal loan without a credit history?

    Yes, some lenders provide loans to individuals without a credit history. However, they may require a co-applicant or collateral.

  • Are personal loans without a PAN card more expensive?

    Interest rates might be slightly higher due to the additional risk perceived by lenders.

Contents

Frequently Asked Questions (FAQs):

Finnable has set a required minimum age for personal loan of 21 years for individuals to be eligible for a personal loan. This ensures that applicants have reached legal adulthood and are capable of entering into a financial agreement.

Yes, Finnable understands the financial needs of young borrowers and offers personalised loan options tailored to their specific requirements. Whether it's financing higher education, purchasing essential items, or starting a business venture, Finnable provides support to young individuals seeking financial assistance.

Borrowers nearing retirement may have unique financial needs, such as retirement planning, medical expenses, or supporting their children's education. Finnable offers personalised loan solutions that consider the specific circumstances of pre-retirement individuals, helping them meet their financial goals.

Unfortunately, no. Finnable does not, at the moment, offer any loans to senior citizens. Currently, 60 is the maximum age for personal loans set by Finnable

Other than personal loan age limits, Finnable considers various other factors for determining loan eligibility. These factors may include the applicant's income, credit score, repayment capacity, and employment stability. By assessing these aspects comprehensively, Finnable ensures that borrowers across different age groups can access the loan products that best suit their financial needs. 

 

Amit Arora

I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
Finnable Logo