Securing a Personal Loan with PAN Card and Bad Credit

Are you in urgent need of funds but worried that your low CIBIL score might come in the way of getting a personal loan? Fret not! You can still avail a PAN card personal loan, even with a credit score as low as 450. Thanks to new-age lenders like Airtel Finance, borrowing money is now easier than ever before. In this article, we’ll guide you through everything you need to know about securing a personal loan using your PAN card, despite having a poor credit history. From eligibility criteria and interest rates to the application process and loan amounts, we’ve got you covered.

Understanding PAN Card Loans for Bad Credit

What is a PAN Card Personal Loan?

A PAN card personal loan is an unsecured loan that requires minimal documentation. As the name suggests, you mainly need to furnish your PAN card to apply for this loan. Lenders use your PAN details to verify your identity and check your credit history.

Who Can Apply for a PAN Card Loan with Bad Credit?

Contrary to popular belief, having a low CIBIL score doesn’t necessarily disqualify you from getting a personal loan. Many lenders, including Airtel Finance, offer PAN card loans to borrowers with scores as low as 450-500. However, you may have to pay slightly higher interest rates compared to those with good credit.

Loan Amounts You Can Borrow

PAN card loans usually range from small ticket sizes of ₹2,000 up to ₹50,000 or more, depending on the lender. For instance, with Airtel Finance, you can easily get an instant loan of ₹2000 using just your PAN card details through the Airtel Thanks app.

Benefits of PAN Card Loans

• Quick and hassle-free application process
• Minimal documentation required
• Funds disbursed to your bank account within 24-48 hours
• Flexible repayment options

Eligibility and Documentation

Eligibility Criteria for PAN Card Loans

While eligibility norms may vary across lenders, most financial institutions require you to meet the following basic criteria:

• Age: 21-65 years

• Employment Type: Salaried or self-employed

• Minimum Monthly Income: ₹15,000 (may differ for some lenders)

• Citizenship: Indian

Documents Needed for PAN Card Loan Application

• PAN Card

• Aadhaar Card

• Passport size photograph

• Bank statements for the last 3 months

PAN Card Loan Interest Rates and Charges

Interest Rates for PAN Card Loans

The interest rates for PAN card loans usually range between 12-30% per annum, depending on your credit profile, income, and the lender’s policies. For example, the table below shows the interest rates charged by some popular lenders:

Additional Charges Involved

• Processing Fee: Up to 2% of the loan amount
• Late Payment Penalties: 2-3% of the unpaid amount
• Prepayment/Foreclosure Charges: Nil

Sample EMI Calculation

Let’s say you take a PAN card loan of ₹50,000 at 15% interest per annum for a 2-year tenure. Using the EMI formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where P = Loan amount, R = Interest rate per month, N = Number of months

Plugging in the values:
EMI = [50,000 x (15/12/100) x (1+(15/12/100))^24] / [(1+(15/12/100))^24-1]
EMI = ₹2,512 per month

So, your total repayment amount over 2 years would be:
₹2,512 x 24 months = ₹60,288

How to Apply for a PAN Card Personal Loan with Bad Credit

Step-by-Step Application Process

1. Check your eligibility and compare offers from different lenders. You can easily check your eligibility for an Airtel Finance personal loan here.

2. Select a suitable lender and loan offer.

3. Fill the online application form and upload the required documents.

4. The lender will verify your details and do a quick credit assessment.

5. If approved, the loan amount will be disbursed to your bank account within 1-2 days.

Tips To Improve Your Chances of Loan Approval

• • Maintain a regular source of income

• Avoid applying for multiple loans simultaneously

• • Include a co-applicant if possible

• • Pay your utility bills on time to establish credit discipline

How to Apply via the Airtel Thanks App

Applying for a personal loan on the Airtel Thanks app is simpler than you think:

1. Download the app from Google Play Store or Apple App Store

2. Log in with your registered mobile number

3. Select ‘Loans’ from the menu and enter your PAN details

4. Select your desired loan amount (₹2000 to ₹50,000) and repayment tenure

5. Verify the auto-filled application details and submit

6. Get the money in your linked bank account instantly

Conclusion:

Getting a personal loan with a low CIBIL score is no longer an impossible task, thanks to PAN card loans offered by digital lenders like Airtel Finance. By leveraging your PAN card, you can now easily borrow amounts ranging from ₹2,000 to ₹50,000 or more, despite having a bad credit history. However, make sure to carefully assess your repayment capacity and borrow responsibly.

To get started on your loan journey, simply download the Airtel Thanks app, check your personal loan eligibility, and get the funds you need in just a few clicks. You can also calculate your monthly EMIs beforehand using Airtel Finance’s user-friendly personal loan EMI calculator. With quick approvals, minimal documentation, and competitive interest rates, Airtel Finance is your trusted partner for all your financial needs.

FAQs:

1. Can I get a personal loan through a PAN CARD with bad credit score?
   Yes, you can get a personal loan with just your PAN card even if you have a low CIBIL score of 450-500. Lenders like Airtel Finance offer PAN card loans tailored for borrowers with poor credit history.

    

2. How to get ₹2000 loan instantly with PAN card?
   Airtel Finance provides instant loans starting from ₹2000 with just your PAN card. Simply download the Airtel Thanks app, select ‘Loans’, enter your details, and get the money instantly.

    

3. Can I get a personal loan using only a PAN card with a 500 CIBIL score?
   Yes, many lenders offer personal loans to borrowers with a CIBIL score as low as 450-500. However, you may have to pay higher interest rates compared to those with better credit scores.

    

4. Can I get ₹50,000 with a 450 credit score?
   Yes, it is possible to get a ₹50,000 PAN card loan even with a credit score of 450. Lenders like Airtel Finance have special loan products designed for borrowers with low CIBIL scores.