Can I Get a Loan Without a PAN Card? Legal Limits & Alternatives

A Permanent Account Number (PAN) is a mandatory 10-digit alphanumeric identifier issued by the Income Tax Department for financial transparency. Under Section 139A of the Income Tax Act, 1961, PAN is essential for high-value transactions, including specific loan categories and deposits exceeding ₹50,000.

As lending processes have digitized under the RBI’s 2025 updated Master Directions on KYC (updated January 2026), the requirement for Video-based Customer Identification Process (V-CIP) and seamless KYC (Know Your Customer) has made PAN even more critical for real-time credit assessment and fraud prevention.

Can I Get a Loan Without a PAN Card? The Reality in 2026

While many prospective borrowers ask, "can i get a loan without pan card?", the answer depends on the loan amount and the lender’s internal credit policy. For most RBI-regulated NBFCs and banks, a PAN card is indispensable because it serves as the unique key to pull your credit report from bureaus like CIBIL, Experian, or CRIF High Mark.

If you do not have a physical PAN card, you can often proceed using your e-PAN or by providing your PAN number for digital verification via the DigiLocker ecosystem. However, applying for a personal loan without pan card record is legally restricted for transactions above ₹50,000. In such cases, the only regulatory workaround is the submission of Form 60 (a declaration for those without a PAN), though most digital lenders now mandate PAN to automate underwriting and credit scoring.

Alternatives and Tips to Avail a Personal Loan Without a Physical PAN

Most reputable lenders in India, including regulated NBFCs like Hero FinCorp, prioritize PAN for risk assessment. If you are currently awaiting a new PAN card or have lost your physical copy, consider these compliant steps to secure a loan without pan card (physical):

• Provide Form 60: This is a declaration filed by an individual who does not have a PAN card but is entering into a financial transaction defined under Rule 114B of the Income Tax Rules.
• Utilize E-PAN: Lenders now accept the digitally signed e-PAN issued by NSDL or UTIITSL as equivalent to a physical card for instant loan without pan card (physical) requirements.
• Maintain a High Credit Score: Lenders are more likely to consider alternative KYC for micro-loans if your repayment history is already established through previous credit lines linked to your Aadhaar-linked mobile number.
• Submit Supplementary Income Proof: Presenting Form 16, audited ITR (if available), or salary slips can strengthen your application by proving tax-paying status despite a missing physical card.
• Leverage Existing Relationships: Your primary bank, where you already have a full-KYC savings account, may offer a pre-approved personal loan without pan card physical verification based on your existing "Customer ID."

Why Lenders Insist on a PAN Card for Personal Loans

Personal loans are unsecured, meaning they require no collateral. Lenders mitigate this risk by verifying your financial "footprint." A PAN card allows the lender to:

1. Assess Credit History: Identify your past repayment behavior via CIBIL to determine the Risk-Based Pricing of your interest rate.
2. Prevent Fraud: Ensure the applicant is not a "willful defaulter" as per the RBI’s Central Repository of Information on Large Credits (CRILC) database.
3. Tax Compliance: Report interest components accurately to the tax authorities to ensure compliance with Tax Deducted at Source (TDS) norms under Section 194A of the Income Tax Act.

How to Apply for a Personal Loan with Digital KYC

To apply through a regulated NBFC like Hero FinCorp, download the official instant personal loan app. The process is streamlined:

1. Enter your basic details and the loan amount required.
2. Upload digital copies of your Aadhaar and PAN for E-KYC. The system uses the Aadhaar Ecosystem to fetch verified data, significantly reducing manual errors.
3. Submit bank statements for the last six months to verify income stability.

Using a PAN card ensures faster processing and significantly higher chances of approval for amounts above ₹50,000. For amounts below this threshold, some lenders may offer a loan without pan card provided Form 60 is thoroughly vetted and the applicant meets stringent residency criteria.

Frequently Asked Questions (FAQs)

1. Can i get a loan without pan card?

Technically, you can apply for small-ticket loans (usually below ₹50,000) by submitting Form 60 as per RBI’s KYC norms. However, for most standard personal loans, a PAN is mandatory to verify your credit score and ensure the lender meets the Fair Practices Code (FPC) requirements.

2. Is PAN card mandatory for an education loan?

Yes, per RBI and IBA (Indian Banks' Association) guidelines, PAN is a mandatory document for the student and/or the co-applicant to ensure tax benefits under Section 80E and for credit tracking across the Centralized Database of Students.

3. How can I check my loan eligibility using PAN?

You can visit the official CIBIL website or a regulated lender’s portal. By entering your PAN, the system fetches your credit history, which determines the interest rate and loan amount you qualify for. This is considered a "soft inquiry" when done through a lender's eligibility tool and does not impact your score.

4. What happens if I apply for an instant loan without pan card?

If the loan amount exceeds ₹50,000, your application will likely be rejected unless you provide a valid Form 60 and the lender’s policy permits it. Even then, interest rates may be higher due to the risk premium attached to profiles without a traceable tax history.

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