Get a ₹5 lakh personal loan with just your PAN card: A step-by-step guide

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Applying for a personal loan has become very easy in India, especially with the convenience and ease of digital lending apps. But added to that, you can now get a loan of ₹5 lakh just by using your Permanent Account Number (PAN) card as your primary document. Your PAN card, which was used so far as the key identity proof to file your income tax return, can now also be used to get a personal loan, with lenders being able to check your credit-worthiness easily through it. Here’s how to do it.

Verify your credit score first

Most lenders prefer a credit score of at least 700 if you are applying for a ₹5 lakh personal loan. If you score is above 700, there’s a very good chance that you will get the loan without any hassles. The better the score, the better your chance of getting a loan and the lower will be the interest rate on that loan. Try and get your score to above 700 before you apply.

Compare lenders for the best deal

Each bank and non-banking finance corporation (NBFC) offers different interest rates, tenure of loan, and eligibility. Compare various lenders through online aggregator websites for the best options available. Some digital lenders also offer pre-approved loans based on your PAN-linked credit report, especially if you have a good record for repayment.

Fill up the online application form

Visit your lender’s website or mobile app. Opt for the ₹5 lakh loan value and select your desired tenure—usually between 12 and 60 months. Provide basic details like your name, contact number, profession, salary, and PAN. Most websites will auto-fetch your credit report once you have put in your PAN, simplifying paperwork.

Upload required documents digitally

Aside from your PAN card, you will also need to upload additional documents like Aadhaar card (for address proof), recent salary slip or bank statement, and a passport photo. If you are self-employed, may need to submit income tax returns or business papers. Your online KYC will be done in a few minutes.

Wait for approval and disbursal

Once submitted, the lender will verify your information and run a credit check. If you are eligible, the loan will be approved—often within a few hours in case you are salaried. Your loan can be approved in as less as 24-48 hours and the money will be transferred directly to your bank account. Make sure that you know and follow your EMI schedule and repayment terms as missing even one EMI could entail hefty fees and downgrading of your credit score.

Using a PAN card to get a loan ₹5 lakh personal loan can be a boon if you need cash quickly and easily. The process entails minimal paperwork and fast processing and is a fairly simple and convenient process. Just make sure your documents and credit score are in order when you apply.

FAQs

Q1: Can I get a ₹5 lakh personal loan using my PAN card alone?

Submitting your PAN card is key, but you will also need other documents such as proof of income (like your salary slips or bank statements) and address proof (like Aadhaar card). If you are a pre-approved customer and have a good credit history, you can get loans with minimal documentation.

Q2: What credit score is needed to get a ₹5 lakh personal loan?

Usually a score of 700 or above is required by most banks and NBFCs to get a ₹5 lakh loan. The higher your score, the greater the chances of getting the loan sanctioned and the lower the rate of interest. Low scores may get your application rejected or will fetch you costlier loans.

Q3: How soon will the loan amount be received?

If your loan application is ready and your credit history is good, lenders can approve and credit the loan in 24-48 hours. Sometimes, particularly with online lenders, the funds could be credited instantly.