The majority of the Indian population is yet to be aware of the fact that they can actually avail of personal loans of up to ₹5 lakhs by merely flashing the PAN card. This lesser-known sortie bears the promise of potential aid to one and all who need urgent money with no considerable paperwork or standing in lines. Today a lot of national banks and NBFCs grant loans merely on PAN cards and credit scores.
This term literally refers to a personal loan where, as a Proof of ID and financials, your PAN is all you need to get sanctioned. It is for Salaried & Self-employed Professionals having good credit ratings. Lenders do not ask for your income proof, some don’t even ask for collaterals. All they know is your PAN number; hence, they know all about you as good paymasters and naturally just approve.
Whom All Can Apply and How Will These Work?
An applicant needs to be an Indian citizen of age above 21 who has a valid PAN card and a modest credit record. The Process basically includes filling up a simple online form, keying in your PAN card and contact details; post that is some fast preliminary level verification. Subject to your credit score and profile, the lender approves loans in the bracket of ₹10,000 up to ₹5,00,000. The disbursement mostly happens in less than 24-48 hours.
Advantages and Precautions
Well, the biggest advantage goes to the speed and simplicity: no lengthy application, no physical inspection, and no collateral. However, it is extremely important that the borrower reads the terms and conditions, especially about interest rates and processing fees, as they may differ from one lender to the next. Moreover, prompt and timely repayments are essential in order to have a healthy credit score that is important for future borrowings.
Conclusively, beyond just being a tax document, anyone holding a PAN card might as well just enable himself to nudge the door toward such swift financial aid. It could be a less-than-one-minute job towards what may be a ₹5 lakh loan for the borrower, given any level of effort and proper fiscal behavior.
