Do we need a PAN card for taking a personal loan?  

Learn About personal loans:  

A personal loan is an unsecured loan, which means that a person can borrow money without providing collateral. Borrowed money can be utilized for a variety of purposes such as planning a trip, business, or for a dream wedding. However, the borrowed money must be repaid with an added interest charged by the lender. Since it is an unsecured loan, the lender will not seize your assets if you default on your loan payments, but it can create a negative impact on your credit score.  

Importance of pan card:  

Personal loans can be applied with minimal Documentation; however, one important identification is a PAN card. Because a PAN card is linked through a bank account, credit card, and loan that you applied for. The lender needs your PAN card to know about your credit score and financial repayment capacity. So, applying for a personal loan without a PAN card will make your personal loan processing very difficult.

Personal Loan Amount Obtainable with a PAN Card:  

Before applying for a personal loan several factors impact the amount of loan that you can borrow. While having a PAN card is a condition for receiving a personal loan, the maximum loan amount you can get is primarily determined by numerous other variables, such as your income, credit score, age, and the lender’s regulations. 

Age Most lenders require the applicant to be between 21 and 60 years of age. 
Employment Status Applicants should be employed or have a stable source of income. Salaried individuals, self-employed professionals, and business owners are generally eligible. 
Minimum Income Lenders typically have a minimum income requirement, which varies based on the loan amount and the city/location. Common minimum income ranges from ₹15,000 to ₹25,000 per month. 
Credit Score A good credit score, usually 700 or above, increases the chances of loan approval with better interest rates. 
PAN Card A valid PAN (Permanent Account Number) card is mandatory for all personal loan applications. 

Benefits of a personal loan:  

Offers flexibility:  

However some loans, such as auto loans, can only be used for specific purposes, personal loans can be used for nearly anything, including debt consolidation, starting a small business, and financing a wedding. Most financial institutions let you use the funds for nearly any personal, family, or home expense.

Increase Credit Score:  

You will need to make monthly payments, and your lender will report your payment history to all three credit bureaus. If you pay on time each month, your credit score will rise.  

Manage Debt:  

Personal loans can help manage debt and credit card balances. This financial plan will assist in consolidating outstanding balances into one.  

Competitive Interest Rates:  

Higher credit scores typically result in lower interest rates for personal loans. Other types of financing, such as credit cards, title loans, and payday loans, often have higher interest rates than personal loans.  

A PAN card is an essential document for serval transactions including applying for loans, opening bank accounts, and other financial activities. Applying for a personal loan with a PAN card can speed up the approval process. Zap Money offers personal loans with reasonable interest rates and flexible repayment periods for the people with good credit score.


How long it will take to get a personal loan without a PAN card?

Is a PAN card mandatory for a loan?

What is the easiest way to get a personal loan?

What are the eligible criteria for taking a personal loan?

Hariharan Ravichandran

Understanding the ever-changing environment of money may be a difficult experience.I'm Hariharan, a seasoned finance explorer and blogger. I am right there with you, beginning on this journey of financial enlightenment as a fellow traveler.


The ZapMoney app makes personal finance easy, accessible, and affordable. The App is available on Google Play Store and App Store for download, allowing you to sign up and access easy personal loans. ZapMoney is powered by Monexo Fintech Private Limited which is a registered NBFC-P2P.
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