Loan on Aadhaar Card: Top Personal Loan Bank Offers on UID
What is Aadhar Card 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.
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.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.
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 access not only to different types of personal loans but also other financial services.
Lists of Personal Loans That Accept Aadhaar Card as Identity Proof
|Personal Loan||Features||Documents Required|
Check details: Personal Loan Verification Process
How to Get an Instant Loan on Aadhaar Card?
KYC details of customers is crucial for all lenders, instant loan providers ask borrowers to submit or upload a copy of their Aadhaar card for KYC as identification and address proof. This is the reason why Aadhar Card can help you Get an Instant Loan easily. You can simply log in to the website or app of instant loan providers, and upload Aadhar card as KYC proof to apply for a loan on Aadhar card quickly and easily without the hassle of a long documentation process.
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 on aadhar card only 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.
Step 1: Visit the official website of your lender or Any Aggregator Website.
Step 2: Visit personal loan page and fill the complete form.
Step 3: Loan Specialist will call you shortly to verify all details.
Step 4: upload aadahar card and other documents to complete the process.
Step 5: After document verification, you will receive a loan Approval.
Step 5: Disbursed within 24 hours after Approval.
Features & Benefits of Aadhar Card Personal Loan
Key features of Aadhaar Card Loan are:
- Loan amount: Minimum Rs. 10,000 to 50 Lakh loan on aadhar card can be availed
- Rate of interest: Personal Loan Interest Rates start from 10.50% 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.
- Turnaround 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.
- At times, you don’t even have to provide the copy of Aadhaar Card, only the 12-digit UID number is enough.
Eligibility Criteria for Aadhar Card loan
Below are the eligibility criteria for Aadhar Card Loan:
- Age: The applicant must be minimum 21 years old when applying for the loan and maximum of up to 60 years 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 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.
Thanks to digitization 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.
Also Read: Personal Loan – Your Friend in Need
Loan on Aadhaar Card – News
Get an instant personal loan with Aadhar Card
Aadhaar Card, a unique identification proof launched by the government of India in 2010 can help the citizens enjoy various services in the public sector & the private sector. The 12-digit Aadhar number is provided by the government to the Indian citizens after collecting their fingerprints and iris scans. Today, it is not just limited to acting as a citizenship proof but also helps you with opening bank accounts, getting PAN card, purchasing a SIM card, filing ITR, applying for a passport, and even availing personal instant loans. Yes, that’s true! Now you can avail an instant loan using your Aadhar card by providing this single document as complete KYC proof.
Instant Personal Loan with Aadhaar based eKYC and video KYC
Amidst the growing ill-effects of the coronavirus pandemic, the Reserve Bank of India (RBI) recently allowed banks to use Aadhaar based Video KYC and eKYC for validating loans and credit card applications. It all happens with the Aadhaar OTP-based e-KYC. It is another effective mechanism to speed up the application processes wherein customers can use their mobile cameras to validate themselves before a bank-appointed officer.
FAQs on Aadhaar Card Personal Loan
✅What is Aadhaar Card Loan?
An Aadhaar Card loan is a form of an unsecured financing option available to customers. It requires minimum documentation formalities as compared to traditional bank loans. Your Aadhaar card is a paperless e-KYC document that fulfils your eligibility criteria for biometric verification. Aadhaar Card is generally an authorized document which can be used for your ID proof and address proof. You just need to submit your financial documents such as PAN Card, bank receipts and salary statements for instant disbursal of your personal loan.
✅Can I Get an Aadhaar Card Loan With a Credit Score Of 600?
Most financiers will ask you to have a credit score of at least 750 to be Eligible for a Personal Loan. There is also an option for availing this financing option even you have a low credit score of 600. With My Money Mantra, you can apply for the loan as per your eligibility Team expert will decide the Lender. IDFC, Bajaj, Fullerton, Kreditech and Money Tap etc. options are available in the market.
✅What Is a Prepayment Fee?
You have to pay a certain amount when you clear off your outstanding dues before the tenure ends. This amount is known as the pre-payment fee. Still, you can opt for the prepayment facility after settling your timely instalments for one year.
✅How Much Can I Borrow?
You can avail an aadhaar card loan from Rs. 10,000 to Rs. 50 Lakhs. The final borrowed amount will be based on your credit report, monthly salary, debt to income ratio, and a range of other factors.
✅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.
✅How much CIBIL score is required to avail Aadhaar Card Personal Loan?
You must have a CIBIL score of 700 or above to avail an Aadhaar Card Personal Loan.
✅Why is Aadhaar Card mandatory to avail an Aadhaar Card Personal Loan?
A single document, i.e., Aadhaar Card is used by lenders for various verifications like your identity, address, and age. This saves a lot of time of the lender as well as the borrower. Hence, most of the banks and other financial institutions ask for Aadhaar Card when you apply for a Personal Loan.