Loan on Aadhaar card – Impact of Aadhaar Card on Personal Loan

Loan on Aadhaar card – Impact of Aadhaar 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:

Mandatory Documents required for Aadhaar Card loan: Salaried individuals:

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

Documents Required for Aadhaar Card loan: 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
  • Income Proof: Latest 6 months’ bank statements
  • Latest ITRs along with income computation, balance sheet, profit & loss statements – all certified by a CA.
  • Business continuation proof
  • Photographs

 

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

HDFC Personal Loan

Before the Aadhaar card came into the picture, Personal Loan applicants had to furnish multiple documents for identity and residence proof. Due to the need for multiple documents, people used to get confused, as discrepancies in the name or address were common. As a result, there used to be delays in Personal Loan approvals.

In April 2010, the Government of India launched the Aadhaar card to help Indian citizens get easy access to certain services in public as well as private sectors.

Today, this 12-digit unique identification number not only proves citizenship of an individual, but also helps them access Personal Loans and other forms of credit, open bank accounts, get a new SIM card or PAN card, file ITRs, and apply for a passport. Aadhaar Card is an all-encompassing document which has transformed India’s financial services industry and enabled borrowers to approach financial institutions directly.

If you are planning to apply for HDFC Aadhaar Personal Loan online, having an Aadhaar Card can be bliss.

To apply for HDFC Personal Loan you will be required to submit the following documents.

Documents Required for HDFC Personal Loan

  • Identity proof (copy of any of the following documents)
  • Aadhaar Card
  • Passport
  • Driving License
  • Voter ID Card
  • Address proof – copy of any of the following
  • Aadhaar Card
  • Driving License
  • Passport
  • Voter ID Card
  • Last 3 months’ Bank Statements or Passbook of last 6 months
  • Latest Salary Slip or Salary Certificate of the current date
  • Latest Form 16

As you can see, Aadhaar card alone is enough as identity and address proof. You don’t have to carry other documents for residence and identity proof.

ICICI Personal Loan

Having an Aadhaar Card has made it easy for the borrowers to get access to financial services. Over the last few years, the Indian Government has tightened its laws to prevent money laundering. Therefore, it is necessary for banks and other financial institutions to request their customers for KYC documents. KYC verification before Aadhaar Card was a tedious manual task requiring borrowers and other customers to submit the required documents to prove their identity and residence. However, now banks including ICICI Bank use e-KYC. As a result, individuals can get access to different types of Personal Loans and other financial services.

If you are planning to apply for ICICI Bank Aadhaar Personal Loan, you need to furnish the following documents.

Documents Required for ICICI Bank Personal Loan

Salaried Individuals

  • 2 recent passport-sized photographs
  • Identity proof (any one of the following)
  • Aadhaar Card (Mandatory)
  • PAN Card (Mandatory)
  • Passport
  • Voter ID
  • Driving License
  • Residence proof (any one of the following)
  • Leave & License Agreement
  • Utility Bill (not over 3-month old)
  • Passport
  • Income proof
  • Last 3 months’ Bank Statement (in which salary/ income is credited)
  • Salary Slips for the last 3 months

Self-employed Individuals

  • 2 recent passport-sized photographs
  • Identity proof (any one of the following)
  • Aadhaar Card (Mandatory)
  • PAN Card (Mandatory)
  • Passport
  • Voter ID
  • Driving License
  • Residence proof (any one of the following)
  • Leave & License Agreement
  • Utility Bill (not over 3-month old)
  • Passport
  • Income proof
  • Last 2 years’ audited financials
  • Last 6 months’ Bank Statement
  • Salary Slips for the last 3 months
  • Other documents
  • Proof for office address
  • Proof of business continuity

You will need Aadhaar card to prove your identity and age (KYC) to avail ICICI Bank Personal Loan.

SBI Personal Loan

The advent of Aadhaar Card in India had a major impact on Personal Loans in recent years. With this easy-to-carry document, you can get easy access to Personal Loans and other financial services.

Public as well as private sector banks both require borrowers to have Aadhaar card at the time of applying for Personal Loans. Not just banks, but online lending service providers are also making it compulsory for borrowers to link their digital accounts with Aadhaar. On doing this, they can avail instant Personal Loans or unsecured loans.

With the increasing usage of the internet, more people are applying for credit through online financial service providers for the quick and hassle-free loan process. However, before the introduction of Aadhaar, the story was different. People had to carry various documents to the bank, wait in a queue for hours, and then again wait for weeks to get loan approval. That is because the verification process used to take a long time. And, due to this long and tedious process, most borrowers were unsure regarding their Personal Loan application’s approval or rejection.

Today, most financial service providers including SBI Bank are offering Aadhaar Personal Loans on the basis of Aadhaar card.

You have to bring Aadhaar card and the following documents to apply for SBI Personal Loan:

Documents Required for SBI Bank Personal Loan

In order to complete your Personal Loan application at SBI Bank, you are required to have the following documents: 

Salaried Employees:

  • Duly filled and signed application
  • 2 recent passport-sized photographs
  • Identity proof: Photocopy of Passport/ Drivers’ License/ PAN Card/ Voters ID/ Aadhaar Card
  • Residence proof: Photocopy of recent Electricity Bill/ Telephone Bill/ Property Tax Receipt/ Voter’s ID Card/ Passport
  • Copy of ID Card issued by the employer
  • Last 6 months’ bank account statement where the salary is credited
  • Last 6 months’ salary slips
  • An irrevocable letter of authority to disbursing authority
  • An irrevocable letter of authority by the person authorised to disburse salary

Other Applicants:

  • Duly filled and signed application
  • 2 recent passport-sized photographs
  • Identity proof: Photocopy of Passport/ Drivers’ License/ PAN Card/ Voters ID/ Aadhaar Card
  • Residence proof: Photocopy of recent Electricity Bill/ Telephone Bill/ Property Tax Receipt/ Voter’s ID Card/ Passport
  • Copy of ID Card issued by the employer
  • Last 6 months’ bank account statement where the salary is credited
  • Last 6 months’ salary slips

PNB Personal Loan

With the advent of Aadhaar Card, a 12-digit unique identification number, applying for PNB Personal Loan has become much easier. Earlier, you had to submit many documents to apply for the PNB Personal Loan. However, with Aadhaar Card as KYC proof and digitalization of the entire process, applying for a Personal Loan online is easy.

This single document is now accepted by most banks and non-banking financial companies (NBFCs) as proof of identity, citizenship, address, and birth. You don’t need to carry separate documents for each proof. To avail any financial service, customers are required to furnish Know Your Customer (KYC) documents to the concerned financial institution.

The government of India had made KYC compulsory for all financial institutions to reduce the cases of money laundering in the country. Earlier, doing KYC was time-consuming because it involved a lot of paperwork, but with the introduction of the Aadhaar Card, the whole process was digitised.

Banks and other financial institutions are now using e-KYC. The Aadhaar database has a complete record of the biometric data of all applicants. Since it is a central database, financial institutions linked to it can use the Aadhaar database for instant verification and completion of the KYC process.

To apply for PNB Aadhaar Personal Loan, you will have to furnish the following documents:

  • Duly completed loan application form with recent passport-sized photograph
  • Income Proof:
  • For Salaried Individuals: Form 16/ Latest Salary certificate duly authenticated by the employer.
  • For Non-salaried Individuals: Copy of ITRs for the last 3 financial years
  • Age Proof: Photocopy of Passport/ Drivers’ License/ PAN Card/ Voter’s ID/ Aadhaar Card
  • Address Proof: Photocopy of recent Electricity Bill/ Telephone Bill/ Property Tax Receipt/ Voter’s ID Card/ Passport/ Aadhaar Card

You can show Aadhaar Card as age, identity, and address proof when applying for PNB Personal Loan.

Bajaj Finserv Personal Loan          

Having Aadhaar Card can get you a Personal Loan instantly. Here are the benefits of applying for Aadhaar Personal Loans using your Aadhaar Card:

  • Aadhaar Card gives you easy access to various loans and other financial services. That is because service providers ask their customers to provide Know Your Customer (KYC) documents and Aadhaar Card is the best way to prove your citizenship and identity.
  • This single document acts as proof for multiple things like citizenship, age, photo, address, and identity.
  • It can also be used for e-KYC (online verification)

Bajaj Finserv offers Aadhaar Card Personal Loan and instant approval on the basis of ekyc and same day disbursal.

Following is the eligibility criteria for Bajaj Finserv Aadhaar Loan:

  • Applicant must be a resident of India
  • The age of the applicant must be between 23 and 57 years
  • Applicant must be employed with a public/ private company or an MNC
  • The minimum salary required depends on the city of residence of the applicant. For instance, applicants residing in Delhi, Mumbai, Pune or Bangalore must have a minimum monthly salary of Rs. 35,000.

Documents required for Bajaj Finserv Aadhaar Loan:

  • Recent passport-sized photographs
  • KYC documents: Aadhaar, Passport, PAN, Driving license, Voter’s ID
  • Last 3 months’ bank account statements

Tata Capital Personal Loan

Thanks to digitization and the introduction of Aadhaar Card, that now it has become much easier and faster to apply for Personal Loan.

The Aadhaar Card of the applicants contains the necessary information about them, such as their name, date of birth, and permanent address, which allow banks to verify these details quickly against the details given by the applicants. It ensures you faster Personal Loan approval by Tata so that you can meet your financial obligations.

This unique card also allows you to pick and choose from various types of Personal Loans and select the one that offers affordable interest rate and attractive terms and conditions.

You can get in touch with MyMoneyMantra’s financial experts to know and understand more about applying for an Aadhaar Personal Loan online. They will guide you on the basis of your requirements.

Tata Capital is one of the financial services providers that accept Aadhaar Card for Personal Loan application.

Here’s the list of documents required for Tata Capital Personal Loan:

  • Photo Identity Proof: A copy of Aadhaar Card/ Voter’s ID/ Passport/ Driving License
  • Address Proof: A copy of Passport/ Ration Card/ Electricity Bill
  • Income Proof: Employment Certificate stating 1-year of continuous employment, a copy of Bank Statements of the last 6 months, and Salary Slips of the last 3 months.

The applicant has to meet the following eligibility criteria to obtain Tata Capital Aadhaar Personal Loan:

  • They should be 22-58 years old
  • Their minimum monthly income should be Rs. 15,000
  • They should be in the current job for at least 6 months
  • They must have a minimum work experience of 1-year

Indiabulls Personal Loan

Thinking about the days when over half a billion people in India did not have any kind of official ID, it was almost impossible to avail or receive any kind of financial benefits or Government subsidies, or even apply for credit like Personal Loans. To avail a personal loan from Indiabulls or any other financial service or even open a savings bank account, one required to procure a number of documents like birth certificate, identity proof, and address proof, which would often create confusion and lead to discrepancies or delays in approvals.

In April 2010, the Indian Government launched the Aadhaar Card with an aim to provide citizens of India with better access to financial services and government subsidies benefits. Today, Aadhaar Card is used not just as a proof of identity of citizenship, but also for availing various services like availing a Personal Loan, opening a bank account, getting a new SIM card or PAN card, filing ITR, and so on.

After demonetization in 2016, online payments and money transactions are on the constant increase. There is rapid growth in the launch of mobile wallets, lending apps, and online banking. People are relying on online services to transfer or receive funds and on online finance providers and aggregators, to get Aadhaar Personal Loans online quickly and conveniently.

Earlier if an individual had to apply for a Personal Loan, they had to go to the bank, meet the loan officer, fill up a lengthy form, and submit the copies of documents to avail a loan. This process was tedious and took many days. With digitization and the launch of Aadhaar, the same process has become really simple. 

Indiabulls Dhani also provides Aadhaar based Personal Loans to help you meet your financial obligation. You can avail loan from Rs. 1,000 to Rs. 15 Lakhs at affordable interest rate starting at 11.99% p.a. The process of application is entirely online, and the loan amount is transferred directly in your bank account.

This loan is available to all resident Indians who are 21 years of age and above, and are salaried or self-employed.

Follow these 4 easy steps to Get Indiabulls Dhani Aadhaar Personal Loans:

  • Download the Dhani App on your smartphone
  • Enter Mobile Number and loan-related details
  • Upload the picture of your PAN Card and Address Proof (Aadhaar Card r any other valid address proof document).
  • Get loan amount disbursed in your bank account instantly

Citibank Personal Loan

In the past, there used to be many cases of loan rejections due to the lack of proper documentation. With the introduction of Aadhaar Card, documentation process has become much simpler and instant for many people and financial institutions. The loan processing time has become shorter with this unique identification document, saving time and efforts. Aadhaar Card has facilitated instant loan disbursal with online verification of borrowers through e-KYC.

Salaried individuals faced immense difficulty in obtaining a loan earlier, now they can easily access instant Personal Loans. Thanks to the digitalized process of checking personal information of applicants using e-KYC, the process is fast and requires minimal documentation.

The digital technology, fintechs, and Aadhaar Card have made the loan application and approval process much faster. The loan is disbursed instantly within a few hours if the documents are in order. This easy and quick access to online Aadhaar Personal Loans has changed the outlook of people in viewing Personal Loans as a perfect solution for arranging funds during financial emergencies.

Citibank also offers such Aadhaar Personal Loans. Following documents are required for Citibank Aadhaar Personal Loans.

Criteria Salaried Self-employed

Proof of Identity

  • A recent photograph
  • Aadhaar card
  • PAN card
  • Passport
  • Driving license
  • Voter’s ID card
  • Overseas Citizen of India (OCI)/ Person of Indian Origin (PIO) Card
  • Job card by NREGA
  • A recent photograph
  • Aadhaar card
  • PAN card
  • Passport
  • Driving license
  • Voter’s ID card
  • Overseas Citizen of India (OCI)/ Person of Indian Origin (PIO)card
  • Professional license/ Trade license (with photograph)

Proof of Residence

  • Aadhaar card
  • Passport
  • Driving license
  • Voter’s ID card
  • Ration card
  • Recent utility bills (with name & address)
  • Letter from employer
  • Lease deed/ Rent agreement copy/ Property registration document
  • Bank account statement printed on the bank’s letterhead (signed & stamped by existing banker)
  • Mutual fund statements
  • OCI/PIO card
  • Latest ITR

Proof of Age                   

  • Birth certificate
  • Graduation/ Post Graduation certificate
  • Tax return
  • School leaving certificate
  • Passport
  • Voter’s card
  • PAN card
  • Company ID/HR confirmation

Length of employability/ continuity of business

  • Employer’s letter
  • Past pay slips
  • Form 16
  • Salary certificate

 

  • Office lease deed/Rent receipts
  • Office space ownership document
  • Past utility bills
  • Tax returns from the same city
  • 3 years bank Statement for business

Proof of Income and

Occupation

  • Latest two salary slips
  • Form 16
  • Last 3 months bank statement
  • IT Returns for last 2 years & supplementary documents
  • Computation of income schedule
  • P&L Account
  • Balance sheet
  • Audit report (duly certified by CA)
  • Bank statement for last 6 months

 

As you can see, you can provide Aadhaar Card as a proof of residence as well as an identity to get a Personal Loan from Citibank.

Yes Bank Personal Loan

Aadhaar Card is a document provided by the Government of India to all Indian citizens. It is a 12-digit Unique Identification Number provided by collecting your fingerprints and iris scans called biometrics. It was launched by the Government considering the following objectives:

  • To provide every Indian citizen with a universal identity
  • To introduce a multipurpose card that can be used as an identity proof, age proof, and address proof, so that Indian citizens don’t have to carry multiple documents with them when applying for any credit, get a new SIM card/ PAN card, or avail government service.
  • To help Indian citizens in availing various government subsidies without any middlemen.

Aadhaar has helped in providing easy access to credit for the common man through e-KYC.

YES Bank offers Aadhaar Personal Loans that are unsecured loans and do not require you to have collateral. YES Bank provides quick and easy Personal Loans, with minimal documentation.

Here are the documents that you need to provide to apply for YES Bank Personal Loan:

  • Duly filled and signed application form
  • Identity proof: Aadhaar Card/ Voter ID/ Passport/ Driving License
  • Address proof: Valid Identity proof like Aadhaar Card with a permanent address which is at least 1-year old.
  • Income proof: Bank statements for the last 3 months

The Bottom Line

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.

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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