How is PAN Card Mandatory for a Personal Loan of Rs. 50,000


During financial emergencies, most people look for an unsecured loan. An unsecured/personal loan is perfect for individuals who cannot pledge collateral. Personal loans usually start from INR 50,000 and can go up to INR 20 lakhs and more. Borrowers need to submit the required documents to the lending institution for personal loan approval. The required documents will help the lender verify the borrower’s authenticity. PAN card and Aadhar card are the most important documents for securing a personal loan in India. Read on to understand the importance of a PAN card for a personal loan of Rs. 50,000.

Understanding the importance of the PAN card for personal loans

PAN (Permanent Account Number) is a code given to Indian citizens by the government. It is an alphanumeric code (10 characters) assigned to an individual. The PAN number for every individual is unique in India. PAN is mandatory for tax returns, financial transactions, fixed deposits, and many other tasks. Citizens of India are also required to link their savings accounts with their PAN cards. Similarly, a PAN card is also required for personal loan applications online or offline.

An individual’s PAN card can be used to check a loan applicant’s financial history. A PAN card also has the individual’s name and age. A lending institution might require these details to confirm the authenticity of the borrower. In addition, a PAN card can serve as a photo identity card as it has the individual’s photo. A PAN card is universally accepted across India. One can show a PAN card to any lender in the country for loan approval.

Is a PAN card mandatory for a personal loan of Rs. 50,000 or more?

A lender cannot offer you a personal loan without verification. Many people default on their loans, and the lender suffers a loss. Lenders thus make some documents mandatory for a personal loan to minimise the risk. Among the mandatory documents for a personal loan, PAN card and Aadhar card are the most important. Have you decided on the right loan amount with a personal loan interest rate calculator? Are you ready to submit the personal loan application with a lender? Don’t forget to produce your PAN card, as the lender will require it for verification.

A PAN card enables the lender to track the borrower’s credit history. The lender will know how well the borrower has kept up with the EMIs. Once the lender determines the financial performance of the applicant, it approves the loan. Without a PAN card, the lender might reject your loan application. Some lenders also demand that the PAN card must be linked with the individual’s Aadhar card.

Is it possible to secure a personal loan without a PAN card?

In general, securing a personal loan without a PAN card is impossible. However, in some cases, one might not require a PAN card to secure a loan. For example, you might not need a PAN card when the lender already knows you. You might not be asked for additional documents when you have a healthy relationship with a lender. It is because the lender knows the borrower has a good credit record. In such a case, the borrower can apply for a personal loan online or offline.

Sometimes, lenders themselves send loan offers to borrowers. It is called a pre-approved loan offer, where the lender has already checked the individual’s profile. Since the loan is pre-approved, the lender might not ask for a PAN card. However, it is discretionary on the part of the lender to ask for the borrower’s PAN card.


A PAN card is mandatory for securing a personal loan of Rs. 50,000 or more in India. Before taking a loan, use the personal loan interest rate calculator on Fullerton India’s website. Once you are set with the right loan amount, fill out the loan application and submit the required documents. Let your PAN card facilitate your loan process.