Need ₹5000? Here’s how to get a loan using your PAN card | Mint

If you are in need of urgent funds for an emergency, getting a personal loan can be a convenient option. These loans provide you with instant disbursement along with flexible repayment tenures so that you can plan your finances wisely. You can get a loan of ₹5000 through your PAN card in quick and easy steps. Let us understand this in detail

PAN card loans

A PAN card is an essential document especially with regard to financial transactions in India. This card is an essential document which is required when you are applying for most loans. A ₹5000 loan on a PAN card is an unsecured loan which you can get with the use of a PAN card as identification and creditworthiness. This type of loan is provided by digital lending apps, and NBFCs as well as some banks.

How to apply for a PAN card to get ₹5,000 loan

Finding the right lender:

• Identify the types of banks/NBFCs through which small loans are disbursed with limited formalities.
• Understand the interest rates, processing fee and the repayment period so that you can explore and compare the best option for you.

Complete the application:

• Go to the web site or application of the lender.
• You will be required to provide important information including your credit score, loan amount and other important information.

Submit documents:

• upload your PAN card for identity proof.
• Some of the lenders may also ask for an Aadhaar card or proof of income.

Review and submit:

• Make sure that your application is complete with accurate information that involves all the required details.

Loan approval:

• After reviewing the application, your lender will either approve or reject your application based on the eligibility criteria.

Disbursal:

• If approved, the loan amount will be credited to your bank account, often within a few hours.

Key advantages of a ₹5,000 loan on PAN card

Minimal documentation: These loans require minimum documentation as you can easily get a loan with your PAN card. However, the lender may ask for additional documents to verify your income and other aspects.

Quick processing: The loan can be approved and disbursed with a completely online process. The processing of the loan is usually completed within a few working days.

No collateral: These loans do not require collateral. Therefore, you can apply even if you do not own any asset.

Key factors to consider before applying for a loan on a PAN card

Interest rates and fees: These loans can attract higher interest rates as these loans are unsecured and do not require collateral. Hence, higher interest rates increase security for lenders to grant you loans.

Repayment discipline: Make sure to repay the loan EMI in order to maintain a healthy credit score which can help you attract low interest rates for your future borrowings.

Loan purpose: It is advisable that you borrow the loan only if you are in need of it and take the amount which you really require in order to avoid any financial burden.

Scam prevention: Make sure to borrow the loan only from well-recognised lenders to escape from fraud. Make sure the lender is registered, and do proper research beforehand.

In conclusion, you can take a ₹5,000 loan on a PAN card, however, you must realise that it may attract higher interest rates than other loans in the market. Your creditworthiness and income plays an important role in making you eligible for the loan. Hence, it is important to keep your ongoing debts on track so that you can improve your chances of getting your loan approved.

(Note: Raising a loan comes with its own risks. So, due caution is advised)