Get a Instant ₹20000 Personal Loan with Your PAN Card: Quick Guide

If you need urgent financial assistance, getting a small personal loan of ₹20000 with a PAN card is a quick and efficient option. This type of loan is ideal to cover urgent and short-term expenses. There are a lot of options now like instant loans which give you the option to take instant personal loans with minimal paperwork, online verification and quick approval time.

This article covers the process, eligibility criteria, documents, and benefits of PAN card loan for ₹20000 to guide you to make the best choice. If you need an urgent ₹20,000 loan, you can also look into instant personal loan apps like Zype, which require less than 8 minutes to complete the loan application and less than 60 seconds to receive loan approval with just a PAN card.

What is ₹20000 Loans with PAN Card? 

Many lenders offer quick loans through a PAN (Permanent Account Number) card. This process has become hassle-free with zero to minimum documents required. Thus, getting a ₹20000 loan with PAN is easier than before. As the PAN card is proof of identification, it will help you get a 20000 personal loan from a lender in a few simple steps when you need funds immediately. Thus, it is a quick and convenient option for borrowers.

Eligibility Criteria for a ₹20000 Loan with PAN Card 

Eligibility criteria vary as per the lender one chooses. Instant personal loan apps like Zype offer a ₹20000 loan with a PAN card with minimal eligibility criteria like

• • Citizenship: The borrower should be an Indian citizen.
  • Age: Age should be between 18 to 66 years. 
  • Credit Score: A minimum credit score of 600 is required, but may vary as per the lender. 
  • Employment Type: Some lenders may require the borrowers to be salaried or self-employed, to get assurance that the loan is paid back.
  • Minimum monthly income limit: Salaried or self-employed with a minimum monthly salary of ₹15000 is required
  • Documents: Zype requires a PAN or Aadhar card along with a mobile number to complete KYC. Some lenders may ask for a few other documents like income proof, electricity bill etc.

Documents Required for a ₹20000 Loan with PAN Card 

Getting a PAN card loan for ₹20000 online is quick and easy with minimal required documents for personal loan. Here’s what you need to provide. 

• • Mandatory Documents: Zype only requires a PAN and/or an Aadhar card along with a mobile number to complete KYC is required by most lenders.
  • Photo ID: Zype requires a selfie-based verification on loan approval. 
  • Proof of Income (optional): To apply for a higher credit score, you can provide your bank statement for the last 4 months.

Benefits of Using PAN Card for Small Loans 

PAN (Permanent Account Number) card is linked to an individual’s credit history and banking transactions. If one has a good credit score, it becomes easier to get loan approval. When it comes to taking small personal loans using a PAN card, these are the following benefits: 

No collateral: You can get unsecured loans on a PAN card. Unsecured loans do not require any collateral.

Fast Approval: Quick loan approval as it needs minimal documentation with PAN.

Quick Verification: PAN card makes the verification process fast and seamless.

Convenience: With a PAN card, you can apply for a loan online in easy steps, even with mobile apps like Zype

Quick Loan Disbursal: PAN provides information about the applicant like employment, tax and other transactions. If there is a good repayment history, it leads to quick loan approval and disbursal.

Repayment Tenure: A borrower has the option to choose the amount, interest rate and repayment tenure that best suits them.

Minimum Documentation: You can get an instant loan with just a PAN card. A lender may ask for just PAN or a few other documents depending. 

Common Mistakes to Avoid When Applying for a ₹20000 Loan 

It is important to do thorough research before taking any loan. Thus, here is a list of common mistakes to avoid that may lead to hefty penalties or loan rejection.

• • Ignoring the Fine Print: Don’t ignore the fine print. Take time to read all the terms and conditions and understand all the financial jargon in the loan documents. The loan documents mention the interest rate, acceptable payment mode, processing fees for personal loan and any other additional charges you may need to pay. 
  • Not Comparing Lenders:  If there is an urgent need for a loan, don’t go for the first lender you find. Choose a lender that offers better terms and conditions as per your financial goals. You can use online loan comparison tools, to narrow down on lenders.
  • Applying for Multiple Loans: If you apply simultaneously to multiple lenders, your credit score takes a hit and can lead to loan rejections. Apply to one or two lenders, at most, while taking a personal loan.
  • Not Choosing the Right Tenure: Use any personal loan EMI calculator tool available online to choose the right tenure.
  • Not Informed About Fees and Penalties: Many lenders charge pre-payment fees, if one pays the loan before the due date. Checking the pre-payment terms is important as ignoring it may lead to penalties and additional charges. Thus, review the lender pre-payment plan before you take a ₹20000 personal loan.

Tips to Increase Chances of Loan Approval 

If you need to increase your chances of loan approval, here are a few tips you need to follow: 

Choose the right amount: ₹20000 is a small amount for a loan. However, if you plan on taking a bigger loan, choose an amount whose EMI plan fits your monthly budget.

Choose the right lender: Do research on various lenders available in the market who offer lower interest rates. Getting a loan with a lower interest rate and longer tenure will help you save thousands.

Improve CIBIL score: Lenders require a minimum 600 credit score to approve a ₹20000 personal loan. This credit score may vary as per the lender.

Lower monthly debts: Higher monthly EMI can burden one to pay on time or cause delays. Select a lower EMI plan, that can easily be paid monthly which doesn’t impact other financial obligations.

Check If You Fulfil Loan Eligibility Criteria: Lenders in India have minimum personal loan eligibility criteria like nationality, age, employment status, credit score, minimum work experience etc. Make sure you fulfil loan eligibility criteria before you apply for a ₹20000 instant personal loan.

Avoid Applying for Too Many Loans: Apply to one or two lenders, at most, while taking a personal loan. If one applies simultaneously to multiple lenders, their credit score takes a hit and can lead to loan rejections. 

Opt for Longer Loan Tenure: Taking a loan for short tenure will lead to high EMIs. This may burden one with the monthly EMI or lead to payment delays. Thus, it is a good option to choose a longer loan tenure.

How to Apply for a ₹20000 Loan with PAN Card: Step-by-Step Process

Research and select the lender offering a ₹20000 loan. If you are considering choosing a personal loan app like Zype for ₹20000 instant personal loan, these are the steps:

Click on ‘Apply Now’ to start your application process or download the Zype app from PlayStore/AppStore.

Fill out basic details like name, email ID, PAN, and employment details, to complete your application.

If you are eligible, you can get approved for a loan in less than 60 seconds.

Complete a simple KYC process by doing a real-time selfie verification and Aadhar-linked mobile OTP to activate your approval limit.

Select the loan amount you want to transfer along with the desired repayment tenure.

You will get instant personal loan disbursal directly into your bank account.

Conclusion

A ₹20000 personal loan using a PAN card is a fast and easy solution for urgent financial needs. Make sure to do market research and choose a lender that fits your requirements. Understand the eligibility criteria, application process and required documents, to get faster loan approval. A solid credit score and proper documentation help you to get the loan approved faster and without much hassle.