If you suddenly need money, there is no need to panic. In this era of digital lending, taking a loan has become easier than ever. PAN card, which was till now used only for your identity and income tax return, now banks and NBFCs are approve loans by checking your credit history through the same. Now, a personal loan of up to Rs 5 lakh can be taken only through a PAN card. No hassle of too many papers, no long queues at the bank. But for this, it is important to take care of some basic things.

First of all, check your credit score.

If you want to take a loan of up to Rs 5 lakh, then your credit score should be at least 700. The higher the score, the better the chances of getting a loan, and the interest rate can also be lower. Therefore, before applying, definitely check the score and make sure it is above 700.

Compare lenders for the best deal.

Every bank and NBFC has slightly different loan terms, interest rates, and processes. Therefore, it would be better to compare online before choosing anyone. Some digital lenders also offer pre-approved loans by looking at your credit report linked to your PAN card.

Fill online form

For the loan, you have to go to the website or app of your chosen lender and select an amount of Rs 5 lakh and a tenure of 12 to 60 months. Basic information like name, phone number, job details, salary, and PAN has to be filled. As soon as you enter the PAN, your credit report is automatically fetched, which makes the process very simple.

Upload important documents digitally.

Apart from the PAN card, Aadhaar card, salary slip or bank statement, and a passport size photo, you also have to upload. If you are self-employed, then ITR or business-related documents can be required. The entire KYC is done online.

Submit the form and wait for approval.

After filling in all the details and uploading the documents, the lender will verify your information and check your credit. If you are eligible, the loan will be approved quickly. In some cases, it happens in just a few hours, and the money can come directly to your bank account within 24 to 48 hours. Just make sure to pay the EMI on time; otherwise, there may be late fees and your credit score may be affected.

So, getting a personal loan up to Rs 5 lakh is no longer a difficult task. No bank queues, no heavy documentation. The only condition is that your banking history, i.e., credit score, should not be bad. If that is right, then just choose the right lender, apply online, and the money will be in your account within a few hours. In this era of technology, this facility of getting a loan can prove to be very helpful.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.