Is it Possible to Get a Loan on Aadhar Card only?

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There are certain times when you might need a cash boost in order to meet your sudden expenses. Whether medical expenses, your need to replace your phone, a short trip, or any emergency: an unsecured loan will be the right choice to go about it. Nowadays, getting an unsecured loan has become uncomplicated. Since it is unsecured, you don’t have to provide any collaterals. Many lenders are ready to give you an instant cash loan with Aadhar card through your mobile. If you want to know how to avail this loan, then continue reading this article.

Significance of Aadhar Card: 

A quick loan can be obtained through the use of an Instant Loan Card, which numerous banks offer. There’s no need to deal with a boatload of paperwork if you qualify for that card. Certain banks may want a copy of your PAN card as further proof of identity. KYC information is required for the processing of every loan. KYC stands for “Know Your Customer.” In other words, it’s a way of getting to know you better. The Aadhar Card is the only form of identification that can provide the financing partner with all the information they need about you.

Aadhar card is an acceptable KYC document since it contains both the picture of the aadhar-holder and their address details. Hence it can fulfill the purpose of an ID proof as well as address proof. Aadhar Card can also be provided in the e-format; thus, it’s versatile. Since the UIDAI holds all information about you, including your biometrics, Aadhar Card plays a significant role as a proof of identity and residence. Consequently, just filling out an application with an e-KYC (Aadhar) can get you an instant loan. 

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Features of Aadhar Card Loan:

To apply for any loan Aadhar Card is a must. Lenders can provide a loan of Rs. 10,000 to Rs. 50 Lakhs at a nominal interest rate of 8.35% in the case of public sector Banks and 10.50% in the case of private banks with Aadhar cards alone.

Some banks can give up to 72 months as a repayment period compared to the usual 12 – 60 months in the case of a  Personal loan on Aadhar Card only. All the loans have a processing fee, and the same applies to the Aadhar loan as well. Banks can charge up to 2% as the processing fee from the loan amount.

In case you want to close the loan amount in advance, you must pay a prepayment charge of 4%. The turnaround time (TAT) can be a few days for the processing in the case of banks. If you have applied for the loan through some mobile applications, you can get the loan amount credited to your bank account almost instantly or within a few hours.

Aadhar Card Loan Apply Online Procedure:

Applying for a loan online is the simplest way to get a loan for your requirement, and the main KYC document necessary is your Aadhar Card. At times you might need your PAN card too. So before applying, make sure you have both the documents with you. Select your lending partner and check with their requirements. Now the Step by Step procedure is as follows:

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1) If you chose a mobile-based private lending partner, then sign up through their app, or if you have chosen to take a loan through your bank, then login to your bank’s mobile app.

2) Find the section titled ‘Personal Loan’ and check for your eligibility. If you are eligible for a personal loan, press the ‘apply online link.’

3) Fill out their online application, wherein they ask you to provide some additional information.

4) You will get a call from your bank’s representative to check the authenticity of the application, and once the verification is over, they will approve the loan amount.

5) You will be asked for a soft copy of your Aadhar for further verification, and an e-Aadhar verification will be done. In that case, you have to provide the OTP from the UIDAI.

6) The loan amount will get credited to your account once the authenticity check is over.

In the case of an app-based lender, the verification is even quicker, and you get an instant loan on Aadhar card, and the amount will be credited within 1 hour to a few hours.

Eligibility to apply for an online Aadhar card Loan:

You should satisfy basic requirements to apply for an online personal loan using your Aadhar card. Make sure you fall under this requirement category before applying so that you won’t face any hassle in securing a loan.

  1. When you are applying for the loan, you must be a minimum of 21 years old, and your age should not exceed 60 years at the time of maturity of your loan.
  2.  This is a substantial factor to be eligible for an Aadhar Loan. Some of the lenders accept a credit score of 700 and above. But to get a loan for sure, your credit score should be 750 and above. 
  3. Some may ask for a bare minimum salary of 25,000 rupees per month. You should be working with any public, a private, or multinational company with a minimum work experience of at least 1 – 2 years.
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Conclusion:

Loans once used to be a tedious process and could be enjoyed by only a few people with a permanent residency and a government job. Those times are over, and now it is accessible by anyone with the advent of online loan applications and mobile-based lenders. It is possible to get a loan on Aadhar Card for your needs without having to go to the bank every now and then and fill out a bunch of paperwork if you satisfy the nominal requirements of the lender. But every loan comes with some terms and conditions, so be sure to read everything before signing up for the process. 

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