Get loan of up to Rs 5 lakh on your PAN card; Check step-by-step process

After taking a loan using your PAN card, the repayment process is the same as for regular loans.

New Delhi: The Permanent Account Number (PAN) card is an essential document. A PAN card is required for filing income tax returns, taking out insurance policies, buying or selling property, opening a bank account, getting a debit or credit card, applying for a loan, buying a vehicle, or purchasing jewellery. Very few people know that you can also get a loan of up to lakhs of rupees through your PAN card.

Who can get a loan on PAN card?

To be eligible for a personal loan on a PAN card, you need to fulfill certain conditions.

1. Your PAN card and Aadhaar card must be linked for the loan.

2. Your age should be between 21 and 57 years.

3. Your in-hand salary should be 25,000 rupees.

4. You must have a valid bank account.

5. Your CIBIL score should be 650 or above.

How much loan and how much interest

Through a PAN card, you can get a loan of a minimum of 50,000 rupees and a maximum of 5 lakh rupees. The special thing is that an instant loan can be obtained through a PAN card. This loan is disbursed within 24 hours.

Since you can only get a personal loan on a PAN card, the interest rate is similar to that of a personal loan. Currently, most banks are charging 11 to 12% interest on personal loans. However, based on your CIBIL score, you may have to pay up to 14% interest in some cases for a loan through your PAN card.

How to apply?

First, you need to find banks that offer instant loans using a PAN card. Then, you need to check the interest rates and other loan-related information offered by these banks. This is so you can select the best offer for yourself. After that, visit the bank’s website and click on the instant loan option. You will then need to register by providing the information requested on the bank’s website.

Following registration, you will need to log in using your credentials and apply for the loan. You will be required to provide the requested information and documents. Finally, you will need to review the loan amount, tenure, and EMI details. After verification, the loan amount will be credited to your bank account.

Documents required

A PAN card helps determine your credit score and any active loans in your name. An Aadhaar card serves as proof of both your identity and address. If you have both of these documents, getting a loan becomes much easier. For verification purposes, a Voter ID, driving license, or utility bill (electricity, water, gas) may be requested, and bank statement for the last 3 months.

How will the loan be repaid?

After taking a loan using your PAN card, the repayment process is the same as for regular loans. You will have to pay an EMI every month. You can also set up an auto-debit. Missing an EMI payment will result in a penalty. Additional charges may also be applied.