Can PAN card get you a Rs 5 lakh loan? See complete list of documents that you need

PAN Card Loan: Issued by the Income Tax Department of India, a PAN card is now not just an identity document but an important evidence of financial credibility.  The Permanent Account Number (PAN) is a 10-digit alphanumeric code that helps track financial transactions and prevent tax evasion.

Since the PAN cards are now linked to most bank accounts, it has become much easier for lenders to verify your KYC details. When your Aadhaar card is linked to your PAN card, its authenticity is strengthened further. This is why taking a personal loan using only your PAN card has become simpler and common than ever.

Keep important things in mind when applying for a PAN card loan

If you are planning to take a personal loan of up to Rs 5 lakhs using your PAN card, you will need both your PAN and Aadhaar card, linked to each other. If they are not, then the loan process may be delayed or even denied. However, once they are linked and after the loan approval, the money can be distributed to your account within 24 hours.

Without a PAN card or if it is not linked to an Aadhaar card, the chances of your debt approval decrease significantly.

PAN Card: Documents required for a Rs 5 lakh loan

• Aadhaar card, passport, driving license, or copy of voter ID (as ID proof)
• One of the above as address proof
• Bank statement from the last 3 months
• Salary slips from the past 2 months or a salary certificate along with Form 16

PAN Card Loan: Key features

• Easy application process: Apply online by filling in the basic details and completing E-KYC using your PAN card
• Quick approval: immediate approval means rapid access to money, even in an emergency
• Low Documentation: PAN and Aadhaar are usually sufficient
• Flexible EMI option: Repayment tenure is from 6 months to 96 months
• Competitive interest rate: Rates vary across banks, so comparing options is essential

How to apply for a PAN card loan:

1. Choose a bank or NBFC (non-banking financial company) that provides a personal loan based on PAN
2. Go to the lender’s website and click “Apply Now.”
3. Enter your mobile number and verify it via OTP
4. Fill the form with your name, PAN number, date of birth, and PIN code
5. Choose your loan type (Term, Flexi Term, Flexi Hybrid) and loan amount
6. Select the repayment tenure and submit your e-KYC details

Eligibility Criteria for PAN Card Loan:

• Should be an Indian citizen
• Age between 21 and 60 years old
• A valid PAN card and a good credit score
• Stable monthly income (for both salaried and self-employed persons)
• A low debt-to-income (DTI) ratio—ideally under 40 per cent.

For example, if your income is Rs 50,000 and your total monthly loan payment, Rs 28,000, then your DTI is 56 per cent, which is considered high.