Is it Possible to Get a Personal Loan Using an Aadhar Card?

Is it Possible to Get a Personal Loan Using an Aadhar Card?

Applying for loans can be a tedious process. But, nowadays, with the ease of online loan apps and lender websites, it has become much simpler. It sounds like things can not get more convenient, but that is certainly not the case. To top it all off, adult Indian citizens can now avail of a personal loan with the help of a widely withheld document – the Aadhar Card. 

A personal loan is an unsecured loan that requires very minimal documentation. You can now borrow one using a copy of your Aadhar card or by verifying its details with your lender. Aside from the sheer convenience of an Aadhar card loan, some of its other benefits are: 

  • Has very nominal interest rates 
  • It has flexible tenures of repayment available 
  • It is a great solution for emergency needs for funds
  • No lengthy paperwork required
  • Taking out loans is easier for a larger number of people due to how widely withheld they are
  • There is instant sanction once details are verified 

The benefits mentioned above of an Aadhar Card personal loan aptly represent how straightforward the procedure is. Other tools such as personal loan EMI calculators are of great help, too, if you want to estimate loan affordability. 

How do I apply for an Aadhar card personal loan?

Applying for a personal loan with your Aadhar card is a simple process that is fulfilled online. All you have to do is visit the official website of the financial institution or loan lender that you have shortlisted and browse through the website to look for Aadhar card personal loan applications. 

Another way customers can apply for such a loan is through the instant loan apps of their respective financial institutions. You can submit the application form online itself. Once that is done, your lender will notify you of your request’s approval at the earliest.

Are you eligible for an Aadhar-based personal loan?

While Aadhar card loans follow a simple process, they do, however, have parameters in place that assure lenders of timely repayment. Every lender has certain conditions that the borrowers need to fulfil to avail of a personal loan. You must adhere to these specific conditions given by your lender to get the loan sanctioned as soon as possible. The standard criterion for a personal loan includes: 

  • You should be at least 18 years old to acquire a loan 
  • These loans also have an upper age limit of 65 to 70 years old. 
  • The individual’s earnings should meet the minimum income requirement prescribed by the lender 
  • Senior citizens above age the age of 65-70 are not eligible
  • Requires a 650 and over credit score to qualify for the loan
  • Must be a salaried or self-employed person with a steady income
  • Many lenders even hike it up to 21-25 years old as they do not deem individuals under that age mature enough 

By adhering to all these eligibility criteria, quick disbursement and verification of your personal loan are assured.  

What documentation do you need for an Aadhar loan?

Apart from fulfilling the eligibility criteria for personal loans, borrowers must submit a few documents for lenders to confirm their income, profession, marital status, lifestyle, etc. Providing them with these documents is imperative as it enables the lenders to determine your repayment capacity and creditworthiness by the time the loan matures. Hence, affecting the approval status of your loan application significantly. The documents required include:

  • PAN Card
  • Income proof
  • Identity proof
  • Bank statement of the last six months
  • Age proof
  • Address proof 
  • A recent, coloured passport size photograph

For Aadhar loans, address proof, identity proof and age proof are not always a necessity. The Aadhar card is proof of them in itself. Regardless, some financial institutions or lenders might ask for them to get extra verification. 

Why should you get an Aadhar card personal loan?

A unique benefit of an Aadhar card personal loan is that you will be able to avail one without restrictions about being employed for a certain period. For instance, many personal loans have an eligibility criterion that requires applicants to be working for an organisation or be self-employed for a minimum of 2-3 years. Such clauses decrease the likelihood of more people being able to avail of personal loans. Hence, reducing accessibility. By using an Aadhar card, individuals can apply for a personal loan despite being newly employed. 

When availing of any personal loan, the first step is to cross-check your eligibility. After doing that, get an approximation of the amount you can loan you can undertake with the help of an EMI and eligibility calculator. And lastly, be aware of the documents required and turn in your application with all of them in place. Make sure you do thorough research to make sound financial decisions and sustain your financial health.

 

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