Is a PAN Card Mandatory for a Gold Loan? Rules Explained

A common question among borrowers is whether a PAN card is mandatory when applying for a gold loan. The simple answer is: it depends on the loan amount and lender requirements.

For smaller gold loans, many lenders may not strictly require a PAN card. Basic KYC documents such as Aadhaar, voter ID, passport, or driving licence are often sufficient to verify identity and address. This is why gold loans are considered one of the easiest borrowing options in India for quick funds. When reviewing the documents for a gold loan, lenders usually focus on identity proof and the pledged gold details.

However, a PAN card becomes important in certain situations. As per financial regulations, lenders typically request PAN information when the loan amount crosses specific limits (commonly around ₹5 lakh, though this may vary by lender). PAN is mainly required for tax compliance and tracking high-value transactions.

Even when not compulsory, submitting a PAN card can make the approval process smoother. It helps lenders maintain accurate records and may reduce verification delays. Having complete documents for a gold loan also strengthens your borrower profile.

If you do not have a PAN card, you can still explore gold loan options, but it is wise to confirm the lender’s policy beforehand.

In short, while a PAN card is not always mandatory, keeping it ready ensures faster processing and fewer complications.