Aadhar Card Loans Streamlining Access To Financial Solutions

Aadhar Card Loans Streamlining Access To Financial Solutions

FPJ Web DeskUpdated: Tuesday, December 26, 2023, 03:59 PM IST
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The Aadhar card loan is an unsecured loan i.e. no collateral is required which covers any type of financial necessity. The process of applying for a loan is much easier with reduced documentation. The applicants can provide an Aadhar Card and other documents online to complete the verification process also known as e-KYC. It’s better to link the mobile number to the Aadhar card and PAN card to make the process faster and smoother.

Features of Aadhar Card Loan

Mentioned below are the features of an Aadhar Card Loan:

i) Flexible Loan Amount:

One can apply for a loan online between INR 5000 and INR 5,00,000.

ii) Quicker Eligibility Check:

One can get a quicker eligibility check by providing all the necessary details.

iii) Collateral Free Loan:

One can apply for a loan on Aadhar without any collateral or guarantors which is a hassle-free process.

iv) Affordable Interest Rates:

Choose a loan that is affordable to repay in terms of interest rates.

v) Paperless Work:

A business loan can be applied online without visiting a bank or waiting for working hours.

vi) Easy Repayment:

The loan can be easily repaid over a convenient period of 1-5 years.

vii) Disbursal in 24 hours:

The Aadhar Card loan gets disbursed within 24 hours of its approval.

viii) Loans on Low Credit Cards:

Individuals with low CIBIL scores can also apply for loans through Aadhar Card.

Fees and Charges

Mentioned below are the fees and charges to get an instant loan on an Aadhar Card at a competitive rate of interest:

Documents Required

Mentioned below is the list of documents required to get an instant loan on an Aadhar Card:

A) In the case of Salaried Employees:

● Identity Proof (Any 1)

● PAN Card (This is the primary ID proof required. However, if it is rejected due to image quality issues or other reasons, any of the officially valid documents given below will suffice).

● Aadhaar Card.

● Valid Indian Passport.

● Valid Voter ID.

● Valid Driver’s License.

● Address Proof (Any 1)

● Aadhaar Card.

● Valid Indian Passport.

● Valid Voter ID.

● Valid Driver’s License.

● Utility Bills (Electricity, Water, Gas) dated within the last 60 days.

● Income Proof

● Last 3 months’ bank statements of your salary account in PDF format showing salary credits

B) In the case of Self-Employed Applicants:

● Identity Proof (Any 1)

● PAN Card (This is the primary ID proof required. However, if it is rejected due to image quality issues or other reasons, any of the officially valid documents given below will suffice).

● Aadhaar Card.

● Valid Indian Passport.

● Valid Voter ID.

● Valid Driver’s License.

● Address Proof (Any 1)

● Aadhaar Card.

● Valid Indian Passport.

● Valid Voter ID.

● Valid Driver’s License.

● Utility Bills (Electricity, Water, Gas) dated within the last 60 days.

● Income Proof

Upload the following document -

● Last 3 months’ bank statements in PDF format.

Eligibility Criteria

Mentioned below are the eligibility criteria to apply for Instant loan on Aadhar: 

● The minimum age of an applicant should be 21 years.

● The maximum age of an applicant should be 60 years.

● An applicant shall be either a self-employed or salaried individual.

● The minimum salary of the applicant shall be INR 20,000 or higher.

● The employment status of the applicant should be MNC, public, private, or self-employed.

Interest Rates for Aadhar Card Loan

An applicant is eligible to get the Lowest Personal Loan Interest Rates with an Aadhar Card. The minimum amount that can be borrowed is INR 5,000 and the maximum amount is INR 10 lakhs. Some of the other charges as mentioned below:

Factors Affecting Aadhar Card Loan Interest Rates

Below mentioned are the factors that affect Aadhar Card Loan Interest Rates:

A) Credit Score:

An applicant must have a credit score of 750 or above to qualify for a personal loan.

B) Borrower’s Age:

Candidates aged 21 and up are more likely to be approved for a loan than those approaching retirement age. Furthermore, in case an applicant is above 30, he/ she may have to pay higher interest rates to acquire a loan.

C) Occupation:

Salaried people may get a better bargain on interest rates than self-employed people.

D) Organization Reputation: 

If the borrower works for a reputable institution, they may be eligible for a lower interest rate on the personal loan. 

E) Repayment Capacity:

 In case of a lower debt-to-income ratio, an applicant will get the loan quickly.

How to Apply for a Personal Loan on an Aadhar Card?

Mentioned below are the steps to apply for a personal loan on Aadhar Card:

Step 1: Visit the bank’s or financial aggregator's websites to check and compare personal loan offers available.

Step 2: Click on “Apply online”.

Step 3: Fill out the application form available online by filling out the personal, professional, and employment details.

Step 4: Fill out the amount of the loan to be raised.

Step 5: Submit the Aadhar Card number and click on “Allow” to permit Aadhar-based authentication.

Step 6: A bank representative will verify the application along with the documents that have been uploaded.

Step 7: Once approved, the loan amount will be credited to the bank account within 24 hours.

Benefits of Personal Loan using Aadhar Card

● This single document is considered to be proof of citizenship, address, photo, age, and identity.

● It eases the documentation process for both consumers and financial institutions.

● It helps with the online verification process (e-KYC) and facilitates quicker disbursal of loans.

● As the processing time is shorter, it saves both time and effort.

● Sometimes, there is no need to provide an Aadhar car number, only a 12-digit UID number is enough.

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