Applying for credit has traditionally been an offline process, but the current world situation has forced everyone to think otherwise. Most financial institutions are now focusing on shifting their services online, prompting the need for rapid digitisation, both from the lender and borrower’s end.
With the introduction of instant online services, the application process for personal loans and such advances has become much more streamlined.
To apply online, borrowers will need to comply with a few eligibility criteria and submit a set of essential documents like PAN, income proof, bank details, etc. These papers are mandatory, especially PAN, but some lenders might provide an instant loan without PAN card if a few conditions are fulfilled.
How to avail an instant loan without a PAN card?
To avail instant credits without PAN, one needs to follow the below-mentioned tips –
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Provide other OVDs
Since KYC documents are a mandate to avail any credit, especially PAN, in its absence one needs to submit other valid documents like Aadhar card, voters’ ID, passport, etc. Any other official ID proof will also suffice.
2. Income proof is crucial
While applying for an instant loan, income proof is a must. It includes the latest salary slips and bank account statements.
These documents help lenders to assess an applicant’s current financial condition. Salary slip information allows financial institutions to gauge an applicant’s repayment capacity.
Based on this evaluation, a lender decides whether to approve or reject an application. Borrowers with considerable monthly income frequently receive preference for the approval of a personal loan without PAN card.
3. Maintain a low FOIR
While applying for instant loans without a PAN card, individuals must keep their Fixed Obligations to Income Ratio as low as possible. It will increase their chances of securing an advance without much hassle.
This ratio represents a borrower’s fixed liabilities against his/her monthly income. For instance, a FOIR of 60% means an individual spends sixty per cent of his/her salary on fixed monthly expenses. Consequently, the disposable income is reduced, and accommodating a new EMI payment becomes challenging.
Therefore, before applying for an instant loan without a PAN card, borrowers should try to reduce their FOIR to improve their chances.
4. Maintain a high credit score
The importance of credit score in an instant loan application cannot be emphasised enough. A high score, preferably 750 or above, testifies that a borrower is creditworthy. It indicates that an applicant is responsible and makes timely repayment. Lenders are, thus, keener to approve such loan applications compared to others.
Also, a high credit score allows borrowers to negotiate and secure better interest rates on their loan amount. Borrowers should, thus, make an effort to improve their personal credit score.
While applying for an advance without a PAN card, an individual must have a good repayment history. Irregular payments and disregard for stipulated norms may give rise to difficulties in this process.
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Top banks and non-banking finance companies (NBFCs) offer the pre approved personal loan offers. It is for applicants with a higher cibil score and a healthy repayment record.
Availing the facility of the pre approved personal loan means avoiding many loan formalities. It can help you get the loan money in your bank account quickly. Lenders provide this facility only to choicest customers who have the required creditworthiness.
Complying with these above mentioned pointers may help applicants to avail an advance without a PAN card. In this regard, they can approach NBFCs like Bajaj Finserv for convenient terms. The company provides a personal loan of up to Rs.25 lakh against attractive interest rates and flexible repayment tenure. Also, one can quickly apply via the company website for a hassle-free application process and swift disbursal of funds.
To make this process more time-efficient, the company has also introduced pre-approved offers. This offer shortens the loan application process further and is available for financial products like personal loans, business loans, etc. Borrowers can quickly check their pre-approved offer by providing their essential contact details.
An instant loan without PAN card can fulfil any planned or unplanned monetary requirements efficiently. The wide range of customer-friendly benefits of this financial product has also helped in augmenting its demands. A recent report from the RBI shows how this particular financial product has witnessed a 17% year-on-year growth and comprises 28% of the total loan book of India. Nonetheless, one must read the fine print before signing the personal loan agreement to optimise their benefits from it.
