If a person thinks a ‘loan on Aadhar card is taken to be a financial product likable to a loan on credit cards, then one is highly mistaken. It is considerably not possible to avail a loan utilizing the UIDAI-issued identity card, nor can they essentially borrow capital against the Aadhaar card. For a salaried personal loan, aadhar card is considered to be essential for an individual.
Thus, phrases for instance the ‘loan on Aadhaar card,’ ‘personal loan on Aadhaar,’ as well as the ‘Aadhaar card loan’ are highly misleading as well as they can create a lot of confusion. Therefore, here is a firm fact. There is particularly no financial product as a loan on an Aadhaar card; nevertheless, one can definitely utilize this UIDAI abbreviated as the (Unique Identification Authority of India) ID to avail a loan along with various other supporting documents as outlined by the prospective lender.
For when an Aadhaar card is utilized as a paperless e-KYC document to avail a personal loan, it is generally referred to as an Aadhaar card loan. The Aadhaar card fulfills the eligibility criteria for biometric verification, as well as so, the overall process of availing a personal loan approval becomes much simplified and quicker.
How to Apply for a Personal Loan Using an Aadhaar Card?
At the beginning, when availing a salaried personal loan, one has to apply with a plethora of documents. However now, Aadhaar card as well as the digitalisation has made it much simplified to apply for a personal loan. The Aadhaar card is a single document such as KYC proof along with is accepted by numerous banks as well as NBFCs for instance proof of identity, residence, citizenship, along with birth.
While applying for a personal loan utilizing an Aadhaar card, they have to fill in an online personal loan application, along with providing an Aadhaar number. If a person has an Aadhaar card linked to the PAN along with the bank account, a person does not necessarily have to upload additional documents for the same. A person just has to offer an address as well as the income proof along with giving permission to numerous lenders to carry out background checks based on the Aadhaar card. As they clear the eligibility along with the verification checks, the salaried personal loan will be essentially approved, as well as the funds will be technically transferred to the account within a mentioned couple of days, or maybe sooner.
Note: Based on a recent circular released by the RBI, Aadhaar card could not be utilized as the address proof for financial accounts for instance loans or deposits. This is potentially the reason why they still will require to offer a valid address proof for instance electricity bill, passport, driving license, rent agreement, etc. while applying for a personal loan.
Benefits of Personal Loan on Aadhar Card
Some of the vital features along with the benefits of availing a personal loan Aadhaar Card–
Personal loan fund– procuring a personal loan funding for personal requirements utilizing the Aadhaar card along with other required documents.
Easy application process– The process of application is quick, easy, effective as well as convenient as one requires minimum documents for the application of a loan.
Reduced documentation– availing a personal loan on an Aadhaar card lowers the requirement to submit numerous documents apart from the generic ones.
Quicker disbursal– post the document verification, a person would get the overall loan amount in their bank account.
No security– one will avail the loan amount without providing any asset as security.
Flexible repayment option- in order to change the EMI payment, one must pick from numerous repayment options of up to the term of 8 years.
Transparency– usually there are no hidden charges while a person applies for a loan on an Aadhaar card.
Advantages of availing a loan with aadhar card
- This single document is usually taken as the proof for citizenship, address, photo, age, as well as the identity.
- Aadhaar card assists with an online verification process popularly called as the (e-KYC) along with the facilitates faster and improved disbursal of loans.
- Aadhaar cards tend to ease up the process of documentation for both consumers as well as the financial institutions.
- The loan processing time is usually taken to be shorter, therefore saving both time as well as the effort.
- In certain scenarios, a person isn’t even required to offer a copy of the Aadhaar card – the 12-digit UID number is sufficient enough.
Mandatory Documents Required for an Aadhaar Card Loan
- Aadhaar Card
- PAN Card
- Proof of address: Passport/Driving License/ Ration Card/Electricity Bill/Rent Agreement
- Income Proof – Salary slips, Income Tax Returns & Bank Statements
- Cheques of your salary account
- Duly filled application form
- Passport-sized photos
Eligibility Criteria for Applying for an Aadhaar Card Loan
- A person requires to be a resident of India
- A person must ensure to be varying between the ages of 23 and 57 years
- A person must also ensure to be working with a public/private company or an MNC.
- The minimum salary requirements typically varies highly depending on the lender as well as the city of residence
- For this single document is generally taken to be the proof for citizenship, address, photo, age, as well as the identity.
- Aadhaar card assists with an online verification process abbreviated as (e-KYC) along with the facilitation of quicker and faster disbursal of loans.
- Aadhaar cards tend to ease up the documentation process for both consumers along with the financial institutions.
- The loan processing time is considerably shorter, therefore saving both time as well as the effort.
- In some scenarios, one doesn’t even require to offer a copy of the Aadhaar card – the 12-digit UID number is enough.