Loan on Aadhar Card Instant: Instant money borrowing against Aadhar Card: As the world today is full of requirements, often even financial crises would be no news at all. Sometimes genuine emergencies, education, and sometimes personal requirements would necessitate financial aid at least for every person. The old-fangled procedure of securing loans through banks was laden with spiky labyrinthine processes. Sometimes, it took virtually weeks or even longer for a loan to be delivered. The government’s revolutionary idea has now put an end to all that. This enables borrowing a personal loan within minutes the limit of which is ₹50,000 with only an Aadhar card in one’s hand. The article provides an overview of acquiring a loan through Aadhar cards, an available overview explaining the documents criteria for eligibility and other things required.
What is Aadhar Card Loan?
Aadhar card loan concept is borne out of the push by the government towards digitization: linking the existing financial services with loans to citizens in an easier manner. Nowadays, several banks and financial institutions offer personal loans against the Aadhar card. Furthermore, all of these are also processed online, making you able to apply for and collect your funds much quicker than the traditional ways. All you need for this is your Aadhar number, since you can borrow amounts of up to ₹50,000 in minutes.
The Process of Applying for an Aadhar Card Loan
Applying for a loan using your Aadhar card is pretty simple and is carried out online for most steps. Here’s a step-by-step guide to help you understand the process:
- Choose a Bank or Financial Institution
The first step is to choose the bank or financial institution from which you wish to apply for the loan. Almost all major public and private banks offer this facility, and you can also apply through mobile apps that provide Aadhar card loans. - Visit the Official Website or App
Once you have chosen the bank, visit their official website or open their mobile app. Search for the page where they are offering personal loans and choose the option of “Aadhar Instant Personal Loan.” - Select Loan Amount and Tenure
You will be asked to choose the loan amount (up to ₹50,000) and the loan tenure. Choose the amount according to your requirement and decide on how long you want to repay the loan. - Fill Out the Application Form
After choosing your loan amount and tenure, you will be required to fill an application form with your personal and financial details. Ensure that you input the correct information to avoid delay in the approval process. - Upload Required Documents
You will be required to upload some documents for verification purposes, like an Aadhar card, PAN card, proof of address, and income proof. Most banks also require a recent bank statement and passport-size photo. - Video KYC Process
Another vital advantage in applying for an Aadhar card loan is that it involves a paperless process. Rather than visiting the bank, the KYC process is carried out through a video call, hence fast and hassle-free. - Loan Disbursal
Once all the application processes have been completed, the bank verifies all your documents and then assesses your eligibility. Then, the loan sum gets credited directly into your bank account.
Eligibility Criteria for Aadhar Card Loan
One of the advantages of Aadhar card loans is that the eligibility requirements are relatively simple. Unlike traditional loans, which require extensive paperwork and credit checks, Aadhar card loans only require a few basic criteria:
- Age: You must be at least 21 years old to apply for the loan.
- Income: You should have a regular income source to ensure loan repayment.
- Aadhar Card: You must be a resident of India with a valid Aadhar card.
- Credit Score: While some institutions may check your credit score, Aadhar card loans are generally more lenient than traditional personal loans.
Documents Required for Aadhar Card Loan
The following documents are typically required when applying for a loan with your Aadhar card:
- Aadhar Card: This is the primary document required for identification.
- PAN Card: To ensure that you are eligible for a financial transaction.
- Passport-sized Photo: For identity verification purposes.
- Proof of Address: Any document that verifies your residence, such as a utility bill or rent agreement.
- Income Proof: Payslips, ITR, or any other document that shows your monthly income.
- Bank Statements: Usually the last 6 to 12 months of bank statements are required.
Interest Rates on Aadhar Card Loans
The usual interest rate provided by the majority of the bank is between 10.50% to 14%, even as a simple personal loan but differs with regard to the terms of the loans. The more one compares them in various banks before applying to obtain the deal at the highest interest rate level.
Benefits of Aadhar Card Loans
- Instant Processing: Unlike traditional loans that take days or weeks, Aadhar card loans are processed instantly, often within a few minutes.
- Paperless Procedure: No need to visit the bank or submit physical documents. The entire process is completed digitally.
- Lower Documentation: Since the Aadhar card itself serves as the primary document, fewer documents are needed compared to conventional loans.
- Quick Disbursal: Once approved, the loan amount is credited to your account without delays.
- Lower Interest Rates: Aadhar card loans typically come with competitive interest rates, making them more affordable than payday loans or credit card advances.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.