Every type of financial transaction in the nation requires a PAN card. The Income Tax Department issues PAN cards, which are 10-digit permanent numbers. You are unable to make any significant bank withdrawals without a PAN card.
But did you know that you can get a loan from banks on a PAN card? One of the most crucial proofs of our identity today is our PAN card. You won't be able to file an income tax return without it, nor will you be allowed to open a bank account.
How to get loan on PAN Card?
Obtaining a loan today is not a challenging task. If your paperwork is accurate, getting the loan is simple. However, sometimes it's difficult to secure a loan. In such a situation, you can use your PAN card to get a personal loan.
On PAN cards, the majority of banks offer loans up to Rs 50,000. Any bank or NBFC will check a customer's CIBIL score before approving a loan against a PAN card. From this, it can be determined the customer's track record for returning the loans.
Loan is available without security
Through your PAN card, you can simply obtain a personal loan up to Rs 50,000. Banks would lend you up to Rs 50,000 without requiring any security. Consequently, you are not required to mortgage anything to the bank. Your CIBIL score, though, should be good. Only then will you be able to get this loan. A personal loan is classified as unsecured and has a higher interest rate than a home loan or car loan. Due to this, banks refrain from offering larger loans through PAN cards.
Required Documents
You must provide the bank with certain documentation if you wish to apply for a personal loan secured by your PAN card. This also includes your work experience. Only if you have a job history of at least two years will you be eligible for a personal loan on a PAN card. You will be able to get a personal loan on a PAN card only if you are doing a job or your business if you have a better CIBIL score in both situations.
