A PAN is a ten-digit alpha numeric code that every taxpayer in India must have. It is a must when applying for a personal loan or a credit card. But, getting loans is not an easy task. You must submit a few documents when applying for a personal or a vehicle loan. One such essential document is your PAN card. However, a lot of people don’t have a PAN card. While a PAN card is a requirement, you can still apply for a personal loan. However, if you don’t have one, what can you do? You can try and submit your Aadhaar card as an alternative. Therefore, this blog will guide you in getting an instant personal loan without a PAN card.
Before going further, let us have a deeper look at instant personal loans, the benefits you get, and alternate ways to get one without a PAN card.
Instant Personal Loan
Banks and other financial institutions offer instant personal loan without any collateral and thus are known as unsecured loans. You can utilize this loan for any needs, such as medical expenses, travel expenses, business expansion, home renovation, wedding plans, etc. Moreover, if you want to get loans at lower interest rates, you can apply using Buddy Loan, the biggest loan aggregator. It helps you get loans from top lenders within a few hours. And you can also quickly check your credit score using Buddy Score before applying for this loan.
Before going further, let us understand the eligibility criteria and required documents for instant personal loans.
Also Read: Don’t Want To Wait Weeks? Then Avail An Immediate Personal Loan
Eligibility Criteria
| Sl.No. | Particulars | Description |
| 1 | Nationality | Indian |
| 2 | Age | 21 to 60 |
| 3 | Employment Status | Employed or Self-Employed |
| 4 | Minimum Income | INR 20,000 per month |
| 5 | Work Experience | Min 1 year completed |
| 6 | Credit Score | Above 750 |
Documents Required
For Salaried Employee:
| Sl. No. | Particulars | Documents required |
| 1 | Proof of Identity | Aadhar Card, PAN Card, Driving License, Passport |
| 2 | Proof of Address | Electricity Bill, Water Bill, Passport |
| 3 | Proof of Income | Salaried: Bank statement for the past six months |
| 4 | Work experience | Employment Certificate for a minimum of 1-year experience |
For Self-Employed:
| Sl. No. | Particulars | Documents required |
| 1 | Proof of Identity | Aadhar Card, PAN Card, Driving License, Passport |
| 2 | Proof of Address | Aadhar Card, Electricity Bill, Water Bill, Passport |
| 3 | Proof of Income | Bank statement for the past three months Salary Slips of three months Income Tax Returns for the last three years Balance Sheet and Profit & Loss Statements for the last three years audited by a CA. |
Why Instant Personal Loan A Boon
With digitalization, personal loans have become a boon to many people who are in immediate need of funds. Here are a few reasons why most people prefer personal loans.
- Multi-Purpose Loan: You can utilize a personal loan for various monetary requirements such as vacation plans, wedding expenses, medical emergencies, business expansion, etc.
- Flexible Loan Repayment Tenure: You can choose to repay your loan by selecting the tenure period from 6 months to 60 months. This makes personal loans more flexible.
- Instant disbursal: The document verification is online and is quick. As a result, your loan amount is credited within a few hours.
- No collateral: You need not produce assets as security to get your loan approved during the loan application process.
- Less documentation: You have to only produce minimum documents like Aadhar Card, PAN card, etc., to get your loan approved.
- Paperless process: With complete digital processes, you don’t have to go to the bank psychically to apply for your loan.
Tips to Get An Instant Personal Loan Without PAN Card
Most lenders have set Aadhar cards and PAN cards as mandatory documents to avail of an instant personal loan. Getting a loan without a PAN card is challenging, but it is not impossible. Here are a few tips that you can consider till you get your new PAN card:
High Credit Score
Lenders think twice about approving your loan when you don’t have a PAN card because they won’t know your exact financial situation. Hence, it would be best to have a good credit score to show credibility. A score above 750 shows you have a consistent repayment history and high creditworthiness. So if you have a poor score, improve it by making timely payments, repaying all your past debts, and maintaining your credit utilization ratio to less than 30% of your credit limit. Moreover, you must review your credit report regularly and check for any potential errors. Therefore, you can also check your credit score using Buddy Score and get your report instantly.
Low Debt-To-Income Ratio
Debt-to-Income ratio (DTI) shows your ability to handle your present and past debts with your current income. So, when you don’t have a PAN Card, you can still show that you are credible and can repay the loan by maintaining your debt-to-income ratio to less than or equal to 50%.
Good Relationship With The Lender
Sometimes, lenders will trust you and offer loans even if you don’t have a PAN card when you are already an existing customer. Moreover, if you have a good credit history, it will be an added benefit to you.
Submit Your Bank Statement
You can also submit your bank statement as it helps lenders track your financial history based on which your loan is approved. It also gives an overall view of your monthly credits and debits, bill payments, and monthly income. Therefore, if you don’t have a PAN card, you can submit your bank statement or salary slip to help the lenders evaluate your credit eligibility.
Submit Aadhar Card
You can submit your Aadhar card as an alternate to your PAN card as both are linked and are the base of your KYC verification.
Tips for Managing Instant Personal Loan Repayment
Once you get your loan amount, you must make sure you repay your dues on time to avoid putting your credit score in danger. Payment history accounts for 35% of your FICO score model. Hence, it has a significant impact on your score.
Here is a list of factors you must consider before applying for an instant personal loan.
Have a clear picture of the purpose of taking a loan: Whenever you apply for a personal loan, know why you want a loan and how much you need. Do a clear plan and budget the loan amount that you require. By doing this, you will know whether you can repay your loan amount beforehand.
Research: Conduct thorough research on banks and lending institutions that offer loans. Compare the interest rates and calculate the EMI for repayment beforehand. This way, you can choose the lender that gives you personal loans at comparatively lower interest rates.
Repay on time: Since payment history significantly impacts your credit score, you have to make sure that you repay your EMIs on time. You can set reminders to repay your loan on time.
Consolidate your debts: Repaying your past debts will improve your credit score significantly. And to do this, you can get a personal loan and repay all your past debts as soon as possible. By doing this, your repayment history will also improve, which will, in turn, increase your score.
Precautions To Take While Applying For A Personal Loan
- Do not sign the loan agreement without reading the “Terms and Conditions” carefully.
- Calculate your EMI before applying for a loan to know if you can repay the loan amount on time.
- Avoid submitting multiple loan applications to numerous lenders at once.
- Avoid taking loan amounts more than required.
Check This Before Applying For A Personal Loan
- Credit Score: Check your score using Buddy Score and maintain it above 750. You must also review your credit report once a year regularly to identify any potential errors and rectify them at the earliest.
- Eligibility Criteria: Check if you meet the lending institution you are applying for eligibility criteria.
- Documents: Keep all the documents ready for KYC verification, such as Aadhar Card, PAN Card, Passport, and Bank statements.
- Fill out the loan application form with accurate personal and professional details for background verification.
Also Read: Salaried And Still Worried About Instant Funds? A Personal Loan Is Here To Save Your Day!
Summing Up
Personal loans act as a life-saver when you need instant loans. And sometimes, even if you don’t have a PAN card, you can still apply for a loan using the alternate ways mentioned above. Moreover, you can get a personal loan using Buddy Loan and get your loan amount within a few hours. But make sure you get your PAN card as it is an essential part of KYC documentation. Last but not the least, check your credit score using Buddy Score and get your full credit report instantly.
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Having any queries? Do reach us at info@buddyloan.com
Frequently Asked Questions
Q. How Frequently can I Check my Credit Score?
A. You can check your credit score frequently whenever you want. However, you have to check your credit report only once a year.
Q. Will my Credit Score Reduce if I Check my Score?
A. No, your credit score will not be affected as it is considered as a soft inquiry. However, if lenders check your credit score before lending you a loan, it might affect your score as it is considered as a hard inquiry. Therefore, make sure you avoid multiple hard inquiries.
