Be it a medical emergency, or an immediate need for cash may put you in a very difficult situation. A personal loan can be of great help in emergencies like this, or for any other expenses like for higher education of your child, a wedding, a home repair, or a funeral.
Personal loans are unsecured loans and hence do not ask for any collateral. If you are an eligible individual, you can borrow money from a bank of your choice at a reasonable interest rate to meet any such financial need. You can even get this loan using any of your valid identity documents, such as your Aadhar Card.
How to avail of a loan on your Aadhar card?
If you are an eligible candidate for a loan, there are not many documents required to get an instant loan. You may be asked for your PAN card by the bank if it demands the same. To avail of a loan through your aadhar card, first thing first, you will have to establish an identity and address proof through your aadhar card, which is also called ‘KYC’ (know your customer) documents.
An aadhar card is an approved and valid KYC document for both the purposes – Identity Proof (with the photograph) and Address Proof. You can then apply for an instant loan online by filling up the bank’s application form online and submitting your e-KYC documents. The bank verifies your identity with the details in your aadhar card (biometrics, aadhar number, name, gender, address, date of birth, and your photographs), which is maintained at the UIDAI.
Applying online requires no submission of physical copies of documents, just your details of the Aadhar card. For any financial institution in India, an aadhar card is a mandatory document.
A Step-by-step guide for applying for loans using your Aadhar card
As mentioned earlier, an Aadhar card is a single-window identification KYC document for any financial institution in India and is also a mandatory document for getting loans by anyone and lending money by banks. Using your aadhar card, you can apply and get instant loans, which are described here step-by-step.
- Your first requirement is logging on to a Bank’s/NBFCs website or using its application on your smartphone.
- In the options column of the bank, select the option of ‘Loans’ and choose the type of loan you would like to take (Personal or any other). On clicking on the option, you will land on the respective loan page, where you can check your eligibility for the intended loan, by clicking on the ‘Apply Now’ option.
- You will be asked to fill in your details online in the application like personal details, employment details, professional details, and more on the form. Fill them up, as required.
- Once you have filled in all the requested details in the said form and submitted it, in a short while, you will receive a call from a bank representative. This is done to cross-verify the details that you have submitted to the bank. Depending on the verification and you meeting the eligibility criteria, your loan request will be approved or declined.
- On successful approval of the loan, you will be asked to submit your Aadhar card online for further and final verifications.
- Once the final verification of your aadhar card is done, and the loan amount approved, the loan amount is credited to your provided savings account.
The entire online process of applying and getting a loan with your Aadhar card is very simple and hassle-free. Moreover, from the first step of applying to the final stage of getting the loan amount credited to your savings account is fully safe and secured. This makes applying for loans online through an aadhar card all the more popular these days than all other forms of loans.
Knowing the eligibility criteria for instant online loan suing Aadhar card
Before you get your instant loan online using your aadhar card, it is very important to have first-hand information of the eligibility criteria for it, and check and know whether you fulfill these criteria, as per the needs of the financial institution.
Here is a consolidated list of requirements, on fulfilling them, makes you eligible for an instant loan from the banks:
- Age for Applying: Your age should be 23 years or above.
- Age on Loan maturity: The maximum age at the time of your loan maturity should not cross 60 years or the age of retirement from services, whichever arrives before.
- Employment: This eligibility criterion says that you should be a citizen of India, and should be employed with public, private, or multi-national organizations.
- Credit Score: Your present credit score should be qualifying for your applied loan.
- Minimum Monthly Income: You are required to have a minimum monthly income (as fixed by each bank you are applying for the loan from).
The Government of India launched the Aadhar Card in 2010 to help the citizens of the country to enjoy hassle-free services across both the public and private sectors. An aadhar card not only acts as your proof of being a citizen of India but also helps you avail yourself a myriad of facilities like availing loans from financial institutions, open bank accounts, purchase mobile SIM cards, apply for PAN, apply for Passport, file Income Tax Returns and many other.
The KYC process introduced by the Government for banks and financial institutions has made it all the more convenient for individuals to obtain financial aid from banks easily without any hassles. Since your Aadhar Card holds all your biometric data, the process of verification and approval of loans has become simpler and quicker.
Processes of validation and verification, which otherwise were very strict and time-consuming, particularly when it was banks lending money to individuals, have become less complicated. Fewer documents are required now, and above all, the time taken for loan approvals has just vanished somewhere.
Personal loans on aadhar cards have become very convenient and easy for eligible individuals to apply for a loan at a time of need. The verification process from banks/NBFCs is all done very quickly based on Aadhar cards, helping individuals to receive their loans in time for their needs.