Those individuals with instant monetary requirements are eligible to apply for the instant, and a simple option called a personal loan, even known as the aadhar card loan at the select financial institution using their aadhar card information as the required identity verification document. But note that it is not the only required identity proof asked by the lender. They even ask for other identity proofs before approving your personal loan. Also, applying for a personal loan by submitting aadhar card details does not mean that your personal loan interest rates offered would be below. Your personal loan interest rates set by the lender depends upon credit score, income and other crucial parameters.
For processing the personal loan or such aadhar card loan, banks or NBFCs do not need any security or collateral. While a personal loan requires other identity documents, usage of an aadhar card allows a personal loan to get processed quickly. Probably it is because of their quick processing owing to the submission of aadhar card that this loan is even addressed by the name aadhar card loan.
Financial institutions need specific documents to verify the individual’s identity for processing the personal loan. This process is known as KYC. With the Aadhaar card now accepted as the identity proof to facilitate numerous public as well as financial services, lenders simply can verify the applicant’s entry with the Aadhaar card information through biometrics. Thus, individuals looking out for any aadhar card loan wherein the availability of proceeds are instantaneous can simply opt for a personal loan. Through their aadhar card details, the processing of personal loans becomes quicker, easier and hassle-free. However, note that besides adhaar card, applicants require submitting other identification details too.
Listed below is a step by step guideline to watch out for in case of aadhar card loan application or personal loan application:
- Download the application on your mobile or approach the site of the lender with whom you already share an existing relationship to apply for the personal loan/
- Login with your required details according to the lender procedure process.
- Under the loan section, choose a personal loan option.
- Make sure you are eligible to submit an application for a personal loan before proceeding.
- Once you are confirmed that you are eligible for the personal loan, click on the application button to forward your application for a personal loan.
- After this, you will be required to put in your details as the online application procedure wants you to.
- Next, the bank or NBFC will approach you for verification of the submitted documents or details.
- Note that you will even be asked to upload the Aadhar card copy as well as the copy of your other identification documents.
Once your Aadhar details are verified along with other details by the bank, your personal loan will get processed.
Personal loan eligibility
Applicants will initially require to first make sure that for an aadhar card loan, they are eligible. Applications must be between twenty-three years and sixty years of age. Moreover, the applicant should be an Indian citizen employed in a government or private company with a qualifying credit score as required by the lender.
When was the aadhar card loan introduced?
A personal loan or aadhar card loan was introduced in the year 2010. The Aadhar card was kept the main basis for identification as the document contains demographic details like name, date of birth, residential address, language and gender of the applicant as well as biometric details like the fingerprints, iris scan data etc. However, there is great confusion about whether only Aadhar is used for personal loan application approval or if something like an aadhar card loan exists.
Aadhar card loan meaning
There are a lot of individuals who think that they can avail of an aadhar card loan in the form of a personal loan, i.e. they can borrow funds just by using their aadhar card. However, in actuality, an aadhar card is one of the documents that you require to submit for personal loan processing. Besides the adhaar card, there are other documents that you require submitting like PAN card, salary slip etc.
How can an aadhar card assist you in availing of a personal loan?
While an aadhar card is mandatorily not required to apply for a personal loan, it acts as a photo ID as well as address proof when you submit a personal loan application. As the Aadhar card contains the biometric details of the applicant, it assists in making the verification procedure faster and simpler. However, you can even use various other address proof as well as ID proof documents like Voter ID, Driving Licenses, Passport etc., to submit personal loan applications. As stated above, an aadhar card is definitely not the only crucial document that you require to submit for availing of a personal loan. Other major documents like your bank statements, PAN card, salary slips (for salaried), profit and loss statement (for self-employed) etc., also required to be provided when availing a personal loan.
Advantages of applying for a personal loan through an aadhar card
Few major benefits of applying for a personal loan through an aadhar card are:
- As biometric data is attached to your aadhaar card, the lender can easily verify your identity and authenticity quickly.
- Aadhar card even serves to be a valid identity as well as an address proof and can help you in securing a personal loan with minimum documentation. However, ensure that you require submitting valid income documents alongside relevant documents as per the prospective lender’s requirement to process your personal loan.
- It even serves as a KYC document and assists in complete KYC formalities, which in turn assists in preventing fraud. Thus, having an aadhaar card can enhance your chances of personal loan approval.
Aadhaar Card Loan – FAQs
Q1. Can I take up a personal loan without an aadhaar card?
Ans. Yes, you can take up a personal loan without your aadhaar card by submitting other required documents that include your address, identity and income proofs etc.
However, as biometric data is directly linked to an aadhaar card, submission of an aadhaar card document for personal loan processing can assist make the verification procedure faster and smoother and might minimize the documentation needed.
Q2. Which financial institutions accept aadhar cards as valid income proof and identity proof?
Ans. All financial institutions accept aadhaar cards as valid identity and income proof.