Getting instant personal loan on Aadhaar

What is an Aadhaar Card? 

The Aadhaar card is an identification document with a unique 12-digit number issued by the Government of India, that serves as proof of both identity and address. It links various essential details, such as your biometric data, residential information, etc. in a centralized online system. This makes the Aadhaar card one of the most valuable tools for availing various financial services, including personal loans. 

Steps to Apply for instant Personal Loan on Aadhar Card

Getting for a personal loan on Aadhaar card is not very complicated. You can simply apply for it by following these steps:

• Explore Various Lender – Research well about the lenders who offer quick personal loans. Don’t forget to check their interest rates, and loan terms & conditions.

• Documentation & Paperwork – You need to submit your Aadhaar card, PAN card, bank statements, and income proof to support your loan application usually. But you can check for lenders who accept only Aadhaar card as a proof enough for personal loans up to a certain limit.

• Apply Online - Submit the loan application form on the lender’s website or app. Make sure that you give complete personal and financial details as required.

• Verification of Aadhaar – You will need to enter your Aadhaar number and undertake biometric authentication to verify and complete your application.

• Loan Approval & Disbursement – Once the personal loan application has been verified and approved, the loan amount will be credited directly to your bank account within a few hours or days as per the bank’s process.

Benefits of Personal Loan on Aadhar Card

There are various advantages of taking an instant personal loan on Aadhaar Card:

• Easy Personal fund - Now you can meet your personal expense requirements using your Aadhaar card only and a few other essential documents.

• Simple application - The online application process is accessible from anywhere, easy, and convenient and you can keep your documents handy for the loan application.

• Minimal documentation – Getting a personal loan on an Aadhaar card saves you a lot of paperwork hassle with a longer list of documents.

• Quick disbursal – The disbursal of the loan amount is relatively quicker than other forms of credit when you apply for a personal loan.

• No Mortgage Required - You can avail the loan amount without keeping any asset as security.

• Flexible repayment – You can customiseyour EMI payment from various repayment options, though that may vary from bank to bank.

• No hidden charges – Mostly, there are no hidden charges when you apply for a loan on Aadhaar card. However, it is always better to read the fine print.

Eligibility for a Personal Loan on Aadhar Card

There are a few terms & conditions that make you eligible to apply for a personal loan on Aadhaar card. Here are some of the eligibility criteria:

• Applicant should be a citizen of India.

• Applicant should be at least 18 years old.

• The Aadhaar card must be valid and connected to your mobile phone number.

• Banks may also take into account your credit history that includes your CIBIL score, existing or previous loan repayment trend, and overall credit & financial history. 

• Employment and income stability to substantiate your capacity to repay the loan. 

While certain eligibility criteria may differ, fulfilling these qualifying factors by and large can raise your chances of getting an Aadhaar loan.

Documents required for Personal Loan on Aadhar Card

Proper documents are of utmost importance while applying for a loan on Aadhaar card to expedite the application process. As proof of identity and address, the following documents may be required.

1. Documents Required for Salaried Employees

As a salaried employee, having the following documents on hand is important to speed up your loan process. These documents primarily cover your identification, address, income, and job status. These may include your Aadhaar card, salary slips, employment proof, bank statements, and PAN card.

• Proof of Identity: Government-issued identification documents such as Aadhaar Card, Passport, Driver’s License, or Voter ID card.

• Address Verification - Utility bills, rental agreements, bank records, passports, Aadhaar cards, Voter ID cards, government-issued letters or certifications you’re your address.

• Income Proof - Salary slips, bank statements from salary account, IT returns, Form 16, or a letter from your employer confirming your income and job details can provide income evidence for loan application.

2. Documents Required for Self-Employed Individuals

• Proof of Identity: Government-issued identification documents such as Aadhaar Card, Passport, Driver’s License, or Voter ID card.

• Address Verification - Utility bills, rental agreements, bank records, passports, Aadhaar cards, Voter ID cards, government-issued letters or certifications you’re your address.

• Income Proof- The most important difference for self-employed individuals is the proof of income. Although these may vary for different lenders, typically acceptable income-proof documents include audited financial statements, P&L statements, bank statements showing transactions, income tax returns, business registration documents, and invoices.