How to Get a Personal Loan Using Your Aadhaar Card

In today's fast-paced world, accessing funds quickly and efficiently is essential, especially during emergencies. Traditional loan applications often involve lengthy processes, including filling out extensive forms and submitting numerous documents. Thankfully, with advancements in digital solutions and government mandates, applying for a personal loan has become much simpler.

One such convenient method is using your Aadhaar card. In this blog post, we'll explore how you can easily get a personal loans using your Aadhaar card and the benefits of this streamlined process.

The Role of Aadhaar in Loan Applications

Gone are the days when loans could be processed without Know Your Customer (KYC) compliance. KYC is a government-mandated process requiring both lenders and borrowers to verify their identity.

With the integration of biometrics into the Aadhaar system, applying for a personal loan has become more accessible and less cumbersome. Providing your UIDAI number simplifies the process for both you and the lending institution.

Traditional vs. Modern Loan Application Processes

Traditionally, applying for a personal loan involves several steps, including filling in personal and employment details and submitting multiple documents for Verification. This process was time-consuming and could be a significant hindrance when you needed immediate access to funds. However, digital solutions have revolutionised this process. You can now get a credit line to cover multiple expenses with minimal hassle.

Loan Amounts Available with Aadhaar

If you're wondering about the loan amounts you can avail of using your Aadhaar card, here's a quick overview. When applying for a personal loan with Aadhaar, you will need to provide your last six-month bank statement if you do not have a salary statement. Once uploaded, the lender will assess your details and determine the loan amount. Typically, lenders offer personal loans ranging from as low as INR 5,000 to as much as INR 25 lakh based on your UIDAI number.

Also Read: Get a Personal Loan of Rs. 5 lakh Online Instantly

Impact of Aadhaar on Personal Loans

Aadhaar has significantly impacted the personal loan application process. Here's how:

1. Simplified KYC Process

Earlier, KYC involved submitting numerous documents. Today, the process is much simpler with e-KYC, where everything is digitised. Since Aadhaar contains biometric data, Verification is quick and easy.

2. Faster Loan Approvals

Both private and public sector banks conduct strict validations for personal loans. Earlier, this meant submitting many documents and waiting a long time for approval. With Aadhaar, fewer documents are needed, and the approval time is significantly reduced.

3. Quick Disbursement

Personal loans are often needed for emergencies, requiring fast Verification and quick disbursement. Aadhaar's digitised KYC process ensures that personal details are readily available, speeding up the loan approval process.

Also Read: Understanding Personal Loan Disbursement Process

Aadhaar Card Loan Eligibility Criteria

To avail of a personal loan using your Aadhaar card, you must meet the following criteria:

• Age: Between 21 and 57 years.
• Monthly In-Hand Income: INR 13,500 or more for salaried individuals; INR 15,000 or more for self-employed individuals.
• Income Credited: Directly to your bank account.
• CIBIL or Experian Score: 650 or more

Documents Required for Aadhaar Card Loan

The documentation process for getting a loan, for example, a Rs. 25,000 loan urgently from Moneyview, is straightforward:

• Confirm or enter your PAN number.
• Ensure your mobile number is linked to your Aadhaar card for KYC verification.
• Provide a clear selfie taken in a well-lit area.

Depending on your profile, you might need to upload proof of address, bank statements, and other supporting documents. Acceptable proof of address includes:

• Aadhaar Card
• Valid Indian Passport
• Valid Voter ID
• Valid Driver's License
• Utility Bills (Electricity, Water, Gas) dated within the last 60 days

For proof of income, furnish your bank statement for the last three months, showing your salary credits.

How to Apply for a Personal Loan Using an Aadhaar Card

Applying for a personal loan using your Aadhaar card is now simpler than ever. Here's how:

• Fill in an Online Application: Visit the lender's website and fill out the personal loan application form.
• Provide Your Aadhaar Number: Enter your Aadhaar number for KYC verification.
• Linking Documents: If your Aadhaar is linked to your PAN and bank account, you don't need to upload additional documents. However, you may need to provide proof of your address and income.
• Background Checks: Permit the lender to carry out background checks based on your Aadhaar card.
• Approval and Disbursement: Once you clear the eligibility and verification checks, the personal loan will be approved, and funds will be transferred to your account within a couple of days or even sooner.

Also Read: How to Get Instant Personal Loan Online?

Benefits of Applying for a Personal Loan Using an Aadhaar Card

There are several advantages to using your Aadhaar card for personal loan applications:

• Single Document Proof: Aadhaar serves as proof of citizenship, address, photo, age, and identity.
• Online Verification (e-KYC): Facilitates faster loan disbursement.
• Simplified Documentation: Eases the documentation process for both consumers and financial institutions.
• Shorter Processing Time: Saves time and effort with a quicker loan processing time.
• Minimal Requirements: In some cases, only the 12-digit UID number is needed without needing to provide a physical copy of your Aadhaar card.

Final Thought

Applying for a personal loan using your Aadhaar card is a streamlined and efficient process, making it easier than ever to access the funds you need quickly. By leveraging digital solutions and government-mandated processes, you can avoid the traditional hassles of loan applications.

Whether you're facing an emergency or planning a significant expense, knowing how to use your Aadhaar card for a personal loan can save you time and simplify your financial journey. So, next time you need a loan, remember to consider the convenience of using your Aadhaar card.