Impact of Aadhar Card on Personal Loan

Impact of Aadhar Card on Personal Loan

 

Before the advent of Aadhar card, people had to furnish many documents for address and identity proof. It used to result in confusion, as more often than not, there were discrepancies in the name or address. As a result, borrowers had to contend with delays in Personal Loan Approvals.

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The Arrival of Aadhar Card

In April 2010, the Indian Government launched the Aadhar card to help different sections of society enjoy access to certain services in the public and private sectors.

Today, an Aadhar card not only proves citizenship, but it also helps borrowers access loans, open bank accounts, get a new PAN card or a SIM card, file their ITRs, and apply for a passport. This all-encompassing document has transformed the financial services industry and allowed borrowers from all walks of life to approach financial institutions directly, without going through a middleman.

Easy Access to Financial Services

Over the years, the Government of India has tightened laws to stop money laundering. Hence, it is necessary for banks to request their customers to furnish KYC documents. Before Aadhar card, KYC verification was a manual task requiring customers to submit the required proof and documents. However, now banks use e-KYC. As a result, you can get not only access to different type of personal loans but also other financial services.

Impact on Personal Loans

Both public and private sector banks require prospective borrowers to have Aadhar card when they apply for Personal Loans. Online loan providers are also making it mandatory for borrowers to link their digital accounts with their Aadhar. When borrowers do this, they can avail instant Personal Loans, which are unsecured loans.

With a deep penetration of the internet, more people are using online financial service providers to avail quick and hassle-free loans. However, this was not the case before the introduction of Aadhar card. People had to carry numerous documents to their local bank, stand for hours in a queue, and then wait for weeks to get approval as the verification process would take a long time. In this long and tedious process, borrowers were unsure about the approval or rejection of their Personal Loan application.

How to Apply for Personal Loan Online Using Aadhar?

Earlier, you had to submit a plethora of documents to apply for a Personal Loan. However, with the advent or Aadhar Card and digitalization, now you can easily apply for Personal Loan online by showing your Aadhar Card as KYC proof. This single document is accepted by most of the banks and NBFCs nowadays as a proof of identity, address, citizenship, and birth. There are various benefits of using your Aadhaar Card for Personal Loan approval process.

Benefits of Aadhar Card to Get a Personal Loan and Instant Personal Loan

  • 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.

Documents Required to Get Aadhar Card Based personal loan:

You can avail Aadhar Personal Loans by providing the following documents:

Documents required salaried individuals:

  • Proof of identity: Aadhar Card/PAN Card/Passport/Voter ID Card/Driving License
  • Residence proof: Passport/Ration Card/ Driving License/Utility Bill/Rent Agreement
  • Last 3 months’ bank statements or 6 months bank passbook
  • Last 3 months’ salary slips or current salary certificate.
  • Latest Form 16

Documents required for self-employed individuals:

  • PAN Card of the applicant or their company/firm
  • Proof of identity: Aadhar Card/PAN Card/Passport/Voter ID Card/Driving License
  • Residence proof: Passport/Ration Card/ Driving License/Utility Bill/Rent Agreement
  • Latest 6 months’ bank statements
  • Latest ITRs along with income computation, balance sheet, profit & loss statements – all certified by a CA.
  • Business continuation proof

Lists of Banks and NBFCs Using Aadhar Card as Primary Identity Proof

The Bottom Line

Thanks to digitisation and introduction of Aadhar card, it has become easier than ever to Apply for Personal Loan. Since the Aadhar contains the necessary information, like your name, age, and permanent address, it allows banks to verify it quickly against the details they have with them. It ensures you get Personal Loan approval quicker so that you can meet your financial obligations.

Aadhar card also allows you as a borrower to pick and choose from a host of online financial services providers so that you can check out the different types of Personal Loans and select one that offers competitive interest and attractive terms and conditions.

If you would like to find out more about applying for a Personal Loan online using your Aadhar card, get in touch with our financial experts at MyMoneyMantra. They will guide you based on your requirements so that you get access to the best online Personal Loan offers.

 

Also Read: Personal Loan – Your Friend in Need

FAQs on Aadhaar Card Personal Loan

Apart from my Aadhaar Card, do I need to show other documents as well to get a Personal Loan?

Yes. Aadhaar Card can only be presented as KYC proof. Apart from this document, you will need PAN Card, income proof, passport-sized photographs, and other documents as deemed fit by the lender.

Is it mandatory to have an Aadhaar Card to avail a Personal Loan?

No. Although Aadhaar Card can be helpful, it is not mandatory to have it when applying for the loan. You can use Passport, Driving License or other documents (as accepted by the lenders) for KYC.

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.

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Category: Personal Loan