Aadhar Card Loan

Earlier, people had to furnish many documents for address and identity proof to get a personal loan resulting in confusion and delay. Today, you can use an Aadhar card as single document for the complete KYC process. Now banks can do e-KYC using an Aadhar card. As a result, you can get access not only to different types of personal loans but also other financial services.

Key features of Aadhaar Card Loan are:

• Loan amount: Minimum Rs. 10,000 to Rs. 50 Lakhs loan on Aadhar Card can be availed
• Rate of interest: Personal Loan Interest Rates start from 10.49% p.a. for private lenders and 8.35% p.a. for public sector banks.
• Tenure: Usually personal loan repayment tenure varies between 1 to 5 years. However, some banks may provide tenure of up to 72 months.
• Processing fee: Up to 2% of the sanctioned amount for an Aadhar Card Loan.
• Prepayment charges: Up to 4% of the outstanding loan amount.
• TAT: TAT  Full form is Turn Around Time. Depending on each lender’s process, the turnaround time of an Aadhar Card Personal Loan may vary between a few hours up to a few days. Some mobile based apps also disburse the loan amount within a few minutes.

Key benefits of Aadhaar Card Personal Loan are:

• Easy access to loans and other financial services as service providers ask their customers for Know Your Customer (KYC) documentation and Aadhar is the best way to prove your identity and citizenship.
• Single document for multiple proofs like citizenship, address, age, photo, and identity.
• The card can also be used for e-KYC, i.e., online verification.
• Application process gets simplified and fast.
• One document (Aadhaar Card) can be used for age proof, identity proof, photo identity proof, and address proof. Also you can check importance of PAN Aadhar link to enjoy other benefits at one go.
• At times, you don’t even have to provide a copy of an Aadhaar Card, only the 12-digit UID number is enough.

• Age: The applicant must be minimum 21 years old when applying for the loan and maximum of up to 60 years (60 years for self-employed) at loan maturity.
• Credit score: To be eligible for an Aadhar Card Personal Loan your credit score must be 750 or above.
• Salary: The minimum net monthly income required to apply for the loan is Rs. 25,000.
• Minimum work experience: You must have a total work experience of minimum 2 years and at least 1 year of experience with the current organisation.
• Years in current residence: You must be residing in your current residence for at least last 1 year.