How To Get Instant Loan On Aadhaar Card
The Indian Government launched the Aadhaar Card in 2010 to help individuals to enjoy few services in both the public and private sectors. The Aadhaar number is a distinctive 12-digit number that is provided by the government to all Indian citizens by collecting their iris scans and fingerprints.
An Aadhaar card not only acts as proof of citizenship but also helps individuals to avail loans, open bank accounts, buy SIM cards, get a Permanent Account Number (PAN) card, apply for a passport, and file their Income Tax Returns.The main objectives of an Aadhaar card are mentioned below:
Impact of Aadhaar Card on Personal Loan
Individuals who wish to avail any financial services must submit their Know Your Customer (KYC) documentation. The government has made it mandatory for financial institutions and banks to collect KYC details of the customer in order to stop money laundering. Earlier, a lot of documentation was required for KYC, however, it is very simple nowadays for KYC to be completed. Banks have also started e-KYC, where the entire KYC process is digitized. Since Aadhaar contains biometric data of the individuals, verification is a simple and fast process.
Fees and ChargesAmount ChargeableInterest Rate Starts from 1.33% per month
Loan Processing Charges Varies from 2% to 8% of the approved loan amount. The processing fee is deducted upfront from the approved loan.
> Interest on Overdue EMIs 2% per month on the overdue EMI/Principal loan amount.
> Cheque Bounce Rs.500/- each time.
> Loan Cancellation
> No additional/hidden charges levied.
> Processing fees will also be retained.
Personal loans are availed by individuals mostly for emergency purposes. Therefore, they will need the verification process to be quick and the loan amount to hit their bank account at the earliest. The main aim of an Aadhaar card is to make the process faster. KYC verification has been digitized and availing a personal loan has become very simple. Personal details of the individual are found in the Aadhaar database, therefore, the time taken to get the loan approved is less.
Features & Benefits of Aadhar Card Personal Loan
Key features of Aadhaar Card Loan are:
- Loan amount: Minimum Rs. 10,000 to Rs. 50 Lakhs loan on Aadhar Card can be availed
- Rate of interest: Personal Loan Interest Rates start from 10.49% p.a. for private lenders and 8.35% p.a. for public sector banks.
- Tenure: Usually personal loan repayment tenure varies between 1 to 5 years. However, some banks may provide tenure of up to 72 months.
- Processing fee: Up to 2% of the sanctioned amount for an Aadhar Card Loan.
- Prepayment charges: Up to 4% of the outstanding loan amount.
- TAT: TAT Full form is Turn Around Time. Depending on each lender’s process, the turnaround time of an Aadhar Card Personal Loan may vary between a few hours up to a few days. Some mobile based apps also disburse the loan amount within a few minutes.
Key benefits of Aadhaar Card Personal Loan are:
- Easy access to loans and other financial services as service providers ask their customers for Know Your Customer (KYC) documentation and Aadhar is the best way to prove your identity and citizenship.
- Single document for multiple proofs like citizenship, address, age, photo, and identity.
- The card can also be used for e-KYC, i.e., online verification.
- Application process gets simplified and fast.
- One document (Aadhaar Card) can be used for age proof, identity proof, photo identity proof, and address proof. Also you can check importance of PAN Aadhar link to enjoy other benefits at one go.
- At times, you don’t even have to provide a copy of an Aadhaar Card, only the 12-digit UID number is enough.
Eligibility Criteria for Aadhar Card loan
- Age: The applicant must be minimum 21 years old when applying for the loan and maximum of up to 60 years (60 years for self-employed) at loan maturity.
- Credit score: To be eligible for an Aadhar Card Personal Loan your credit score must be 750 or above.
- Salary: The minimum net monthly income required to apply for the loan is Rs. 25,000.
- Minimum work experience: You must have a total work experience of minimum 2 years and at least 1 year of experience with the current organisation.
- Years in current residence: You must be residing in your current residence for at least last 1 year.
List of Non-Banking Financial Companies (NBFCs) and Banks that use Aadhaar Card as Main Proof of Identity
> HDFC Personal Loan
> SBI Personal Loan
> Indiabulls Personal Loan
> ICICI Personal Loan
> PNB Personal Loan
> Capital First Personal Loan
Read In Gujarati Loan On Aadhaar Card
Frequently Asked Questions (FAQs)
Can I get a personal loan on my Aadhaar Card
Yes, you can use your Aadhaar Card and apply for a personal loan with any bank or NBFC.
Can I apply for a personal loan on my Aadhaar Card online
Yes, you can apply for a personal loan on Aadhaar Card online.
Is it possible to apply for a personal loan on Aadhaar Card without having a PAN card
Yes, you can apply for a personal loan on Aadhaar Card without having a PAN card. However, in such cases, you will be required to provide a few other documents as well such as your Voter ID card, passport, driving licence, salary slips, and so on. The list of documents will be subject to the requirement of the loan provider.
How long does the loan application process take when you apply for a personal loan on Aadhaar card
It is usually a quick process as the Aadhaar card contains biometric data of the applicant. The biometrics allows a faster and simpler verification process and thus, allows quicker application process.
How long does it take for the loan amount to be disbursed
You will be required to fulfill the eligibility criteria for the loan application. The verification process does not take too long. If all the documents are submitted and verified on time, the loan amount is usually disbursed within 2 to 3 days.