A PAN card is a ten-digit unique alphanumeric term issued by income tax departments to all taxpayers. Authorized persons can oversee your financial actions with the help of your PAN number, as it is a vital document needed for opening bank accounts and loan sanctioning. A PAN card is mandatory when applying for a personal loan above Rs.50,000. However, you may also need other documents along with that. But you can obtain a personal loan with PAN details if you have a good credit history and a stellar credit score. Lenders get information regarding your financial account and your repaying capacity. PAN card loans will probably be your formal procedure within 24 hours. You can apply for the loan on a PAN card online or offline by submitting all the related documents.
A personal loan is an unsecured loan that provides minimum documents. Genuine financiers and NBFCs always consider your PAN as a mandatory prospect.
If any person or organization comes forward to provide loans without a PAN card, then beware of the reliability of the lenders because they can be unregistered or unorganized sectors which pile you up with a high-interest rate which eventually leads to trouble. There are huge chances for you to get a loan, and you can check out the Buddy Loan app to learn more about personal loans.
Benefits of using PAN card for loans
A personal loan can help you cope with many emergencies in which a PAN card is a KYC document to get granted for personal loans.
Identity proof:
PAN is a vital ID proof with your full name and photo and can be used as a potential document by financial organizations if you have no Aadhar.
Financial history:
PAN gives a financial affirmation on the borrower’s credit history. Generally, it can show the creditworthiness of a person.
You are more reliable for lenders to issue a personal loan with low-interest rates when you have a clean financial history and a good credit score. Check out Buddy Score to be aware of your score.
Ease of Personal Loans
There is no need to pledge any assets to avail of a personal loan as it is unsecured.
Once your loan is approved, lenders will transfer it directly to your bank account.
How to utilize the loan is strictly in your favor. There is no specific obligation you can use the loan for education, traveling, weddings, medical emergencies, etc.
You will benefit from a flexible loan repayment tenure of up to five years, and you will get affordable interest rates.
Importance of PAN card for personal loans
In some instances, people have different names in different documents. So it will create confusion when applying for a loan. So you can use a PAN card, the unique id number provided by the income tax department. PAN and Aadhaar are connected with your bank account, providing more credibility to your financial transactions. If you are a person who files your IT on time, you are more reliable for the lenders to approve a loan. You can use your PAN card to obtain an instant loan online. A PAN card is an essential document for making any monetary transactions or purchases like cars, jewelry, and so on. So it is like a report card of your credit behavior which will make it eligible for you to get a better loan. Buddy Loan provides an instant loan with a low-interest rate. Log in to find out.
Hence, you should know the factors which affect your interest rates.
Income:
You can obtain a low-interest rate if you have a good income and a better repayment capacity.
Credit score:
An excellent credit score can positively impact the approval of loans and interest rates. If not sure about the credit score, check out Buddy Score.
Employers status:
If you are an employee of a well-known organization, you might be more financially responsible for on-time repayments.
Relationship with the lender:
When you are a trustworthy customer of a bank, then they can quickly identify your eligibility with your credit history.
Conclusion
PAN cards have become an essential document for any financial transactions, even big or small. As per government guidelines, you should link PAN and Aadhaar with your bank account, so your credit history will quickly be available for the lenders when you apply for a loan. Moreover, you can even get an instant loan online if you have an account with suitable finance activities and a good credit score.
