People take personal loans for different purposes, from covering urgent medical expenses to going abroad for higher studies. The best part of taking these loans is that the applicant does not need to deal with cumbersome paperwork, and the loan approvals and disbursals are almost instant. However, many people don’t know that instead of providing separate identity, residence, and income proofs, they can only get a personal loan on an Aadhaar card. Find more information about the process of getting an Aadhaar card loan below.
Getting a Personal Loan on Aadhaar Card – An Introduction
Every lender asks for the applicant’s KYC (Know-Your-Customer) documents when applying for a loan. It is a process that the Indian government mandates to monitor each citizen’s financial activities and prevent money laundering. When the applicants send out their personal loan applications with their Aadhaar card, it becomes easier for the lender to verify the details using UIDAI Aadhaar biometrics. Besides that, the Aadhaar card is a valid identity proof linked to their bank account. Consequently, it also serves as an authentic identity, income, and residence proof. Therefore, individuals applying for a loan with an Aadhaar card do not need to provide any other document to verify their details.
The loan verification and approval process were time-consuming and stressful for the applicant. Lenders demanded various documents to complete the application process. However, even since the introduction of Aadhaar cards, one may apply for a personal loan on an Aadhaar card only. This saves the borrower’s time and makes the loan process less stressful. Applicants can complete their e-KYC process online without any physical documents. As a result, lenders can provide instant loans within minutes if the applicant offers an Aadhaar card at the time of submission.
Steps to Get a Personal Loan on Aadhaar Card
With the introduction of the Aadhaar card and the increasing adoption of digitization in the Indian finance sector, applicants need to show only the Aadhaar card as their KYC proof. Many NBFCs accept this single document as proof of identity, residence, birth, and citizenship. These are the steps to apply for a personal loan using an Aadhaar card:
- Visit NBFC’s website and review their loan details.
- Fill out the loan application form by providing the required details, including bank, personal, and employment information.
- Decide the loan amount to apply for and enter the loan details.
- Enter your Aadhaar card number online.
- Wait for the verification process to complete, which takes only a few minutes.
- Once verified, the lender sends a loan offer with the loan amount and interest rate.
- Select a repayment term with EMIs suitable to your monthly budget.
- Accept the loan offer and receive the loan amount directly into your bank account within 24 hours.
Benefits of Applying for an Aadhaar Card Loan
Applying for a personal loan with an Aadhaar card makes the entire process much easier and faster than otherwise. These are a few benefits one may avail:
- An Aadhaar card allows an individual to easily avail of different types of loans and financial services. When they provide their Aadhaar card, they do not require any other proof to verify their identity and citizenship.
- This single document is enough to prove multiple aspects, including the applicant’s age, citizenship, photo, address, identity, phone number, etc.
- E-KYC process done with an Aadhaar card is much easier and faster than manual verification.
- Lenders that provide personal loans on Aadhaar cards can approve loans much faster with online verification.
One may apply for a personal loan on an Aadhaar card online at various NBFCs in India. The online process is pretty simple, enabling approval and disbursal within hours. Avail the loan when in need and repay it over flexible repayment tenure. An instant personal loan helps individuals cover expenses, including a personal loan for higher education, home renovation, wedding expenses, medical emergencies, and more.