Importance of PAN Card While Applying for a Personal Loan
PAN stands for permanent account number, another unique 10 digits alphanumeric number assigned by the government of India to every Indian citizen. It is proving to be an equally important card especially post demonetization.
PAN card acts as an identification number and is very useful and essential for conducting any banking or financial transactions and filing your income tax returns. The primary reason a PAN card is required is for tax purposes. It is vital to link your PAN card details with your savings account. It is an essential document when opening a bank account. If you don't have a PAN card, you cannot open a bank account with any financial institution.
A PAN card is also considered an essential document when applying for a personal loan. Without a PAN card, getting a personal loan would not be easy. Therefore, a PAN card is an essential document for a personal loan and other aspects such as buying a car, hotel/restaurant, opening a demat account, purchasing foreign currency, etc. Besides, a PAN card helps reduce instances of tax evasion in India.
- PAN stands for permanent account number, another unique 10-digit alphanumeric number assigned by the government of India to every Indian citizen. It is proving to be an equally important card, especially post demonetization.
- PAN card acts as an identification number and is very useful and essential for conducting any banking or financial transactions and filing your income tax returns.
- The primary reason a PAN card is required is for tax purposes. It is vital to link your PAN card details with your savings account.
- It is an essential document when opening a bank account. If you don't have a PAN card, you cannot open a bank account with any financial institution.
- A PAN card is also considered an essential document when applying for a personal loan. Without a PAN card, getting a personal loan would not be easy.
Why Is a PAN Card Mandatory for a Personal Loan?
A PAN card reflects the financial history of the borrower and gives lenders an idea of their repayment ability. When it comes to a personal loan of Rs.50,000 or more, a PAN card is a mandatory document to be submitted.
When it comes to a 50,000 personal loan or more, a PAN card is considered a mandatory document to complete the E-KYC verification procedure. Without a PAN card, one cannot acquire a personal loan, debit/credit card, jewelry, property, or vehicle. Moreover, buying, selling, constructing, or renting a property will proceed upon PAN card submission.
Besides, a PAN card approves a personal loan faster, because a PAN card enables the lender to track your credit history and other financial aspects, which are necessary to get a personal loan of Rs.50000 or above. In case you are unable to provide a PAN card while taking a personal loan, your loan may get rejected, dropping your credit score simultaneously.
Therefore, a PAN card is a more mandatory document than a salary slips and a bank statement when applying for a personal loan online. However, some lenders do not consider a salary slip or a bank statement as a necessary document. Instead, a PAN card is considered an essential document, when applying for a personal loan, as it safeguards the lender's fear of the borrower's inability to repay the loan amount on time.
- A PAN card reflects the financial history of the borrower and gives lenders an idea of their repayment ability.
- For a personal loan of Rs.50,000 or more, a PAN card is mandatory for E-KYC verification.
- Without a PAN card, one cannot acquire a personal loan, debit/credit card, jewelry, property, or vehicle. Buying, selling, constructing, or renting a property requires PAN card submission.
- A PAN card facilitates faster approval of personal loans by enabling lenders to track credit history and financial aspects necessary for loans of Rs.50,000 or more.
- Failure to provide a PAN card during a personal loan application can lead to rejection and potentially lower credit scores.
- A PAN card is more essential than salary slips and bank statements when applying for a personal loan online.
- Some lenders do not consider salary slips or bank statements necessary, prioritizing the PAN card to assess the borrower's ability to repay the loan on time.
Can I Apply for a 50000 Personal Loan Without a PAN Card?
When applying for a personal loan, a PAN card and Aadhar card are two crucial documents required for getting an instant personal loan. If you don't submit a PAN card or your PAN card is not linked to your Aadhar card, your loan application may get cancelled. So, make sure that your PAN card is linked to your Aadhar card before applying for a personal loan of Rs.50000 or more.
If you are applying for a personal loan with your existing lender and share a healthy relationship with the lender, a PAN card may not be the only document for the approval of the loan. Because the lender already trusts you and knows your KYC documents very well.
You may also be eligible for a pre-approved personal loan, where a PAN card may not be required ideally because the current lender would have your personal and financial details. Hence, you don't have to produce your PAN card if the personal loan is taken from the existing lender, and you have always made timely payments.
Eligibility Criteria for a Personal Loan of Rs.50,000
Before applying for a personal loan of Rs.50000, you should be well versed with the eligibility criteria the lender has set for a personal loan. Mostly, the eligibility criteria for getting a personal loan of Rs.50000 are minimum and simple, and generally, salaried & self-employed individuals with the following criteria are listed below:
- A borrower must be in an age group between 21 – 58 years
- A borrower must earn a minimum income of Rs.15,000 per month
- A PAN card is required as it works as your financial background for the approval of a personal loan
- A credit score is an essential criterion for personal loan approval, but it is not the only criterion. A borrower will be eligible for the loan based on other eligibility aspects like income, job stability, bank statement, etc.
- A borrower must exhibit job stability in a private, government sector, or business
- A borrower must be an Indian citizen
With these above eligibility criteria, you can instantly avail of a personal loan of Rs.50000 through the loan apps and official websites of the trusted financial institution or NBFCs.
Required Documents for a Personal Loan of Rs. 50,000
While applying for an instant personal loan online, you will undoubtedly get a fast approval on a 50000 loan on a PAN card without any hassle.
To avail of a personal loan of Rs.50,000, you need to submit minimum paperless documentation, as a personal loan is a collateral-free loan type.
In contrast to the traditional method of availing a personal loan, which takes more than a week for loan approval and disbursal, an instant personal loan is simple with minimal documentation and quick support.
You need to verify your Aadhar card and PAN card as mandatory KYC documents for a personal loan of Rs.50000. E-KYC verification is conducted in real-time and accordingly the loan approval status is displayed.
However, some financial institutions and NBFCs set very minimal and hassle-free documents. Among the documents, Aadhar & PAN cards are measured as the two mandatory documents for getting Rs.50000 personal loans online. With these two documents by your side, your chances of loan approval would be faster. So, keep your PAN card and Aadhar card handy to apply for the loan from anywhere and anytime easily.
You will require the following documents to get a Personal Loan:
- You must have an identity proof such as Aadhar Card, Passport, Driver's License, etc.
- Address proof is mandatory to seek a personal loan. You can provide documents such as Utility bills, Rental agreements, Aadhar cards, etc.
- Income proof is another important document to prove you can repay the loan. Be sure to provide anyone with the following: Salary slips, income tax returns, bank statements, etc.
- If you are employed, you must scan and upload your Employment Certificate, Offer Letter, etc, before submitting your documents for loan approval.
Interest Rate and Charges for a Personal Loan of Rs.50000
Interest rate is the proportion of a loan amount charged by the lender as interest rate to the borrower. Interest rates vary from lender to lender; therefore, before applying for a personal loan, you should always compare the interest rates and charges and choose the best rates that suit you. For example, for a 50000 personal loan, the interest rates may increase or decrease as per the rate and charges, based on the borrowers' creditworthiness'.
If the lender feels he is at a higher risk of lending the loan amount, the interest rate and charges may increase. So, to get an affordable interest rate, you need to possess a decent credit score for loan approval of Rs.50000.
A higher credit score lets the lender know that you pay your bills on time, while a lower credit score tells the lender you may be at higher lending risk due to missed payments. Hence the interest rate & charges may differ depending on the borrower's payment history.
Nevertheless, an instant personal loan has lower interest rates than credit card interest rates. So personal loans are an ideal choice because they provide competitive interest rates and GST charges.
What will be the EMI for a 50,000 Personal Loan?
Every borrower wishes to know the equated monthly instalment for a personal loan amount when applying for a personal loan. The instant personal loan enables a loan EMI calculator to help you accurately find your EMI. In addition, the in-built loan Emi calculator allows individuals to evaluate their EMI before applying for a personal loan.
Generally, the tenure for an instant personal loan jumps from a minimum of 6 months to a maximum of 24 months for a 50000 amount. So, for a 50,000 personal loan, your EMI would differ from lender to lender based on the interest rate and tenure of the personal loan. The tenure is responsible for a borrower's increased or decreased EMI. That means the shorter the loan tenure, the higher the EMI, the longer the term, and the lesser the EMI on 50000 personal loans.
For e.g., For a 50,000 personal loan, your equated monthly instalment on an interest rate of 25%* per annum, and a tenure of 18 months would be Rs.3,360.
EMI is calculated using the formula as under
P x R x (1+R) ^N/ [(1+R) ^N – 1)]
P= Principal amount of the loan
R= Rate of interest
N= number of months
Hence, before applying for a personal loan, always plan and decide your EMI conveniently that suits your monthly expenses.
Why Hero FinCorp Instant Personal Loan?
In the competitive market for an instant personal loan, Hero FinCorp Instant Personal Loan, an instant personal loan app stands apart as one of the best loan apps for 50000 personal loans. Hero FinCorp launched Hero FinCorp Instant Personal Loan app for providing loans for various purposes. It is a one-way solution for all your financial problems instantly. It offers a loan of Rs.50,000 up to Rs.5,00,000 for multiple reasons, particularly for salaried and self-employed professionals:
Debt consolidation
This is one of the best ways to avail of a personal loan from Hero FinCorp Instant Personal Loan for consolidating debt. If you have more than one loan, taking a personal loan can be a smart passage. Your debts will get reduced to a single loan lessening your burden of multiple loans.
Marriage loan
A personal loan enables complete flexibility of end-use. You can spend the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to engaging the hall, caterers, or any other costs during the wedding.
Education loan
Taking a personal loan for education is a good idea and is mainly applied by the primary member and not the student if a minor. A personal loan taken for education can be used for various reasons other than educational fees, such as hostel fees, library fees, purchase of expensive books for personal use, etc.
Mobile Loan
It is a small cash or personal loan. It is ideal for buying a mobile phone or any smart gadget you require. Mobile phone is the need of today and not a luxury. Every salaried person is not able to buy expensive mobile phones. Hence personal loan is a perfect choice with fast approval and hassle-free procedure for purchasing a mobile phone from ₹20,000 up to ₹50,000 approximately.
Travel Loan
A travel loan or vacation loan is a loan for holidaying. There are times when you desire to visit a destination but are unable to visit that place due to lack of money as travelling involves plenty of expenses like travel expense, shopping, hotel expense, and miscellaneous account which is uncountable. It is where an instant personal loan can grant your wishes instantly by disbursing the loan amount on the same day.
Emergency or Urgent Loan
Life is unpredictable, and emergencies can occur to anyone anywhere. In such circumstances, you require urgent money for medical help for treating an ailing illness. An instant cash loan can be a useful option during an emergency.
An Instant Cash Loan or Small Loan
Applying for an instant personal loan is the right way to get a small loan on flexible repayment tenure and with no security or guarantor involved against the loan amount. The loan could be for any reason and should be only taken when required and able to make the payment on time.
Steps to Apply for Instant Personal Loan of 50,000 Using Pan Card.
When applying for a Hero FinCorp Instant Personal Loan online, you will encounter an easy and less time-consuming loan procedure, unlike the traditional loan method.
Here are a few simple steps to apply online for Hero FinCorp Instant Personal Loan 50000 personal loan:
- Install the Hero FinCorp Instant Personal Loan app from the Google Play store through your android phone
- Simple login & sign-in method to register your mobile number for OTP verification
- Next, you will visit the loan EMI calculator, which will appear to evaluate and plan your Emi tenure on the interest rate set by the lender
- Enter your Aadhar card and Pan Card details with a stringent security password
- Fill in the paperless loan application form with personal and professional information
- You don't need to upload or scan your photographs; you get the option to click a photo selfie
- Your KYC documents should meet the lender's eligibility criteria for loan approval
- Once the documents are verified and approved, your loan will be disbursed directly into your bank account affiliated with the Hero FinCorp Instant Personal Loan app
Once you have fulfilled the eligibility criteria, the next thing is to collect and scan all the required documents and apply for instant approval online:
- Step 1: Use online tools or contact Hero FinCorp to determine eligibility criteria.
- Step 2: Collect required documents such as identity proof, income proof, and property documents.
- Step 3: Fill out the loan application form and submit it along with the necessary documents.
- Step 4: Wait for the lender to review your application and provide approval or rejection.
- Step 5: Hero FinCorp usually approves loans up to Rs. 5 lakhs instantly, but only if you keep your documentation intact.
- Step 6: Upon approval, the loan amount will be disbursed to your bank account.
Conclusion
In today's financial landscape, a PAN card is indispensable when applying for a personal loan, especially for amounts like Rs. 50,000 or more. Acting as a crucial identification and verification document, the PAN card facilitates a smooth and efficient loan approval process. It provides lenders with insight into your financial history, ensuring that you meet the necessary eligibility criteria for loan approval.
Frequently Asked Questions
Why is a PAN card important when applying for a personal loan?
A PAN card is essential as it helps in verifying your financial history and repayment ability. It is a mandatory document for E-KYC verification and loan approval processes.
Can I get a personal loan without a PAN card?
Generally, a PAN card is mandatory for a personal loan. However, if you have a strong relationship with your existing lender or are eligible for a pre-approved loan, you might not need to submit a PAN card.
What can I use a personal loan for?
A personal loan can be used for various purposes, such as debt consolidation, weddings, home renovation, medical expenses, buying a laptop, smartphone, home appliances, and more.
How much can I borrow with a personal loan?
You can borrow amounts starting from Rs. 50,000, subject to meeting the eligibility criteria set by the lender.
