Personal Loan

Customers frequently avail of personal loans due to a variety of reasons. It makes sure that people don’t have to dip into their hard-earned savings. It can be taken for a variety of personal reasons.

Personal loans are issued all over the country by several lending institutions. They can be availed by either government banks or even private banks and NBFCs.

Some of these eminent private banks are:

  • HDFC
  • Axis Bank 
  • ICICI Bank, etc.

Some well-known NBFCs that fall in this category are:

  • Money View
  • LoanTap
  • Aditya Birla Capital
  • Indus Easy Credit
  • Bajaj Finserv
  • HDB Financial Services, etc.

The interest rates on these loans are kept to a minimum so that people can afford to repay them without problems.

The one major positive about getting a personal loan is that you do not have to keep any collateral as security in case you fail to make the repayment.

The personal loan is also known as an unsecured loan for this very reason. This feature of personal loans makes it highly popular among people.

Although many lending institutions, even government banks, may require you to submit various documents before they sanction a loan. The entire documentation process is tedious.

However, some lending institutions provide loans on Aadhar Cards and PAN Cards along with a bank statement for income proof.

What is a Personal Loan?

A personal loan is an unsecured type of loan where borrowers will not have to produce any collateral for taking the loan. The bank will only ask for a few documents and income statements to make sure you will be able to pay the loan on time.

These loans will not require you to show any documents on what you spend the credited money on or why you need the loan. The lending institution will decide on a loan amount and the interest rates after reviewing your financial situation.

The interest rates of these loans are generally kept to a minimum so that people can repay the loan conveniently. The no collateral feature means you won’t have to worry about your personal property getting seized if you fail to make the payments on time.

The loan is sanctioned with the stipulation that the borrower would have to repay the loan amount with interest within a fixed tenure. The tenure may vary from 1-5 years, depending on the loan amount and the borrower’s convenience.

You can repay the loan amount by paying the bank a part of the total amount with interest every month. The payments need to be made within 60 days from the repayment date.

If a person fails to make a payment within this time, their credit scores will suffer and go down with each late payment or non-payment.

What Documents Are Usually Needed For Personal Loans?

The lending institutions that provide people with personal loans will ask the borrowers to produce some documents. These documents serve as address proof, identification proof, age proof, and so on. 

It is compulsory to provide the stipulated documents to the lending institutions to settle on a loan amount and interest rate. Here are some such documents that lending institutions require for verification purposes before they sanction a personal loan:

  • Aadhar Card
  • PAN Card
  • Bank Statements
  • Driving License
  • Leave and License Agreement
  • Salary slips
  • Personal Photographs
  • Voters ID
  • Utility Bill
  • Passport
  • Office Address Proof
  • Other KYC documents

The document requirements for each bank or NBFC differ and can be a combination of any of these documents. The exact documents required for the process will be informed by the bank authorities when you apply for a loan.

Is It Possible To Get A Loan Using Aadhar Card Only?

While there is a long list of documents required to be produced at the lending institution, not all of them are compulsory. The documents needed at each bank or NBFC will vary according to their own rules and regulations. 

All banks and NBFCs need proper documents to verify your age, address, name, identity, workplace, and financial situation so that they may help you to get a loan. These documents are also quite crucial in deciding the final loan amount and the interest rates that will be levied on it.

The Aadhar Card is a crucial document that will do most of the work for you. It contains your identity proof, your home address, your birth date, verified phone number, and your photo identity as well. Therefore providing this may be sufficient to get a personal loan.

However, since these loans also require you to submit income proof as well, you will be required to produce around 3-6 months of bank statements or your salary slip for income verification.

Related Article: Apply for a Personal  up to 5 Lakhs on Aadhaar Card

Can I Get A Loan Using a PAN Card Only?

As stated above, not all banks will require you to produce all the listed documents for verification. The bank authorities will decide the documents required by them, and you will be informed about them when you apply for the personal loan.

Like the Aadhar Card, the PAN Card also has most of the information that the bank authorities need for verification purposes. The PAN Card has your photo identity, age proof, and so on. While the address is not directly mentioned in the PAN Card itself, it can be found by the bank authorities from the Income Tax database using your PAN number. 

So, it is possible to get a personal loan using your PAN Card as ID proof and such. However, you will have to submit some income proof like bank statements or salary slips, like in the case of the Aadhar Card.

Who Is Eligible To Get A Personal Loan Using Aadhar Card And PAN Card?

Not all people are eligible to get a personal loan. Many eligibility criteria are set for borrowers who wish to avail of a personal bank loan. Here is a list of basic criteria that the borrower must meet to get a bank loan:

  • The borrower must be of 21 years or above.
  • The borrower should have a minimum in-hand monthly income as stated by the lending institution.
  • The income of the borrower must be credited directly to a bank account.
  • Applicants or borrowers must have a minimum Cibil or Experian score as specified by the lending institution.
  • The borrower must be able to produce the necessary documents as specified by the lending institution.
  • The borrower must meet the stipulated monthly income requirements as set by the lending institutions.

How To Get An Instant Personal Loan Using Only Aadhar Or PAN Card?

Some lending institutions provide fast personal loans with minimal documentation. Here is a list of the top 3 such lending institutions that need only the borrower’s Aadhar or PAN Card for verification before sanctioning the loan:-

  • Money View
  • Bajaj Finserv
  • Indus Easy Credit

Money View is exceptionally good when it comes to providing bank loans on low interest and minimal documentation. They will provide you with instant loans that will be credited to your bank account within 24 hours after being sanctioned. 

Money View only requires your bank statements of 3 months along with an Aadhar Card or PAN Card for verification. You will not be required to produce any more documents. All these will have to be uploaded on their site as the documentation process is entirely online.

Their interest rates are also quite low, and they provide a long payment tenure of up to 5 years. They also offer loans to people with low credit scores starting from 600 CIBIL and 650 Experian scores.


In India, it is possible to get a personal loan without a long list of documents. Personal loans themselves were created so that the borrowers would not have to suffer through long documentation processes when they are in urgent need of loans.

Since the Aadhar Card and the PAN Card have most of your personal information, they can single-handedly work as your identity verification document for the lending institution. The only additional document that you will be required to produce will be a bank statement to verify your financial situation.

You need to carefully read the rules and regulations of taking personal loans from different banks and NBFCs to know which one will be more convenient for you. Money View will be a good choice for people who want a fast loan with minimum documentation and reasonable interest rates.

Related Articles: How to Get Personal Loan without PAN Card