How to secure a ₹50,000 loan using your PAN card – A simple guide | Mint

Financial problems may arise at any time due to the rush of modern life. Ready cash may sound out for such demanding needs as medical emergencies, urgent repairs, or one-off travels. Modern technological innovations in finance have made taking out a small loan with minimum documentation easier than ever. Let’s see how you can get a personal loan of ₹50,000 using your PAN card as your primary identity.

Personal loans

A personal loan is a type of unsecured credit that provides funds for a myriad of uses like major purchases, debt consolidation, home improvement, and payment of medical bills. A personal loan is offered to an applicant based on their creditworthiness-not against any form of collateral, unlike a secured loan. For this purpose, the lenders evaluate individual performance by taking into consideration income, credit history, and one of the important ratios: the debt-to-income ratio, after which the applicant is then assigned the interest rate.

PAN card’s role in personal loan applications

The PAN (Permanent Account Number) card is a basic yet an indispensable document needed for many financial transactions, especially loan applications, since as far as India is concerned. It is the unique identification number for connecting financial activities, assigned to individuals by the Income Tax Department. Lenders refer to your PAN card when applying for a loan to fasten the loan appraisal, confirm your identity, and assess your creditworthiness.

In conclusion, when money is scarce, personal loans can create a little breathing space, but then one needs to be careful. Heavy interest charges can multiply the cost of borrowing, and delayed payments can harm credit ratings. Here’s how you should stay off the debt trap: examine your finances in detail, compare the options for borrowing from many lenders, and select term arrangements based on their ability to repay.

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