Is it Mandatory to Have an Aadhaar Card to Avail an Instant Personal Loan?
Personal loans are highly versatile financial tools. You can get a personal loan for a wide range of purposes, ranging from travel plans, home renovation, medical emergencies, buying your favorite gadget, and much more. Personal loans are popular for three reasons. One, the lending financial institution does not monitor how you use the funds. Two, the documentation is minimal and the loan doesn’t require any collateral. And finally, you can get money instantly upon approval of your loan application.
An Aadhar card is a vital document during the loan application process but isn’t compulsory. You can quite easily substitute it with a combination of your passport, voter ID, and PAN card. That being said, having your Aadhar card ready during your loan application process goes a long way in simplifying it.
What is an Aadhar Card Loan?
Every financial institution will ask you for KYC (Know Your Customer) documents when you are applying for a personal loan. Completing your KYC is a process mandated by the government and every lender must comply with it. All Aadhar cards have UIDAI Aadhar biometrics which can be used to identify unique customers. Whenever a loan applicant submits their application using their Aadhar card as the main verifying document, lending institutions find it easier to complete the loan verification.
Types of Aadhar Card Loans You Can Choose From:
You can avail a personal loan using your Aadhar card for several purposes. These include:
- Home renovation
- Wedding expenses
- Debt consolidation
- Buying consumer products
- Higher education
- Medical emergencies
- Travel plans and vacations
Benefits of Taking a Personal Loan on Your Aadhar Card:
- You get instant approval on your personal loan (subject to meeting the eligibility criteria).
- Get a flexible tenure for loan repayment ranging from 6 to 24 months.
- There are no hidden charges on the loan.
- Your personal loan is disbursed in less than 24 hours after approval.
- The loan repayment schedule is automated.
- The documentation is almost entirely paperless, which helps in sanctioning the loan instantly.
- The interest rate reduces on your loan.
Eligibility Criteria For an Aadhar Card Loan:
To apply for a personal loan using your Aadhar card,
- You need to be at least 21 years of age while applying for a personal loan. You must also be 60 years or under at the time of loan maturity.
- Your credit score should be at least 750 if you are applying for loan using your Aadhar card, as a single applicant.
- You need to meet the minimum monthly salary requirement as well. It is Rs.25,000 for applicants in Delhi and Mumbai and Rs.20,000 for residents across other parts of India.
- You need to have at least 2 years of work experience and a minimum of 1 year’s experience working in your current organization.
- You must have been living at your current place of residence for a minimum of 1 year.
Features of an Aadhar Card Personal Loan:
- An Aadhar card loan is an unsecured loan. Applicants don’t need to provide any form of collateral to get approval for unsecured loans.
- Based on your income and repayment capabilities, you can choose your EMI based on your principal amount, interest rate, and loan tenure. The tenure for the repayment of an aadhar card loan varies from 12 to 60 months.
- Depending on your needs and creditworthiness, you can borrow as much or as little as you require. Personal loan principal amounts start from Rs.20,000 and go higher than Rs.10,00,000. You can also avail competitive rates of interest on your principal amount.
- Financial institutions don’t monitor how personal loans are used. Once the lender disburses the personal aadhar card loan, you can use it in any way without restriction.
- An existing customer of a lending institution can apply for personal loans and get fund approval and disbursal in a matter of hours on the same day that they apply for the loan. In medical emergencies or sudden financial crunches, this feature can be a lifesaver.
- An individual who isn’t a customer of the financial institution can apply for a loan online from start to finish. Funds get transferred to your personal account directly in under 48 hours.
How to Apply for a Personal Loan Using an Aadhar Card?
With more and more financial companies providing instant personal loans online, the Aadhar card is often the only document required. By simply sharing your Aadhar card details, you can complete a 100% paperless loan documentation process without any hassle.
As you can see, getting a personal loan using your Aadhar card is not mandatory but it makes the process a lot simpler and faster. You don’t need salary slips, bank statements, or any other documentation if your Aadhar card is linked to your other bank accounts. You can also use tools like a personal loan interest rate calculator to understand your monthly EMI expenditure and manage your funds properly.
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