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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.

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.

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