Personal loans are utilized for various reasons, including unexpected medical expenses and keeping a family afloat during a financial crisis. The most significant aspect of getting a money loan is that you have to fill out a little paperwork, and the money is available very immediately. Did you know that your Aadhaar card may be utilized to get a loan? In this article, you’ll learn how to get Aadhaar-based loans.

For personal loan approval, most lending institutions need an Aadhaar card as one of the necessary documents. In an ideal world, an Aadhaar card personal loan would not exist. Applicants may apply for a quick personal loan on aadhar card using credit cards or fixed deposits, but not with their Aadhaar card. Some people assume that by utilizing their Aadhar card, they may get a personal loan. However, such a product does not yet exist in the lending institutioning and financial industries.

Loan on Aadhaar Card

Every lender demands Know-Your-Customer (KYC) papers when a borrower applies for a loan. KYC is a government-mandated procedure that all lenders and borrowers must adhere to. If you apply for a Personal loan on aadhar card and provide your Aadhaar card as a critical document, lending institutions and financial institutions will find it simpler to complete the loan verification procedure using UIDAI Aadhaar biometrics. For more details read more here.

Take into consideration the following factors:

• You may now apply for a Personal Loan using your Aadhaar Card.
• These loans need E-KYC submission, which eliminates the need for paper documents.
• Your Aadhaar card serves as identification, residence, age, and citizenship evidence.
• The Aadhaar Personal Loan is a no-collateral loan with a payback duration of one to five years.
• Maintain a good credit score to get a Personal Loan quickly.

How to Get a Personal Loan Using Your Aadhaar Card

The following are the steps for acquiring a Personal Loan using your Aadhaar card and no extra documentation.

• Check to determine whether you are eligible for a loan on aadhar card, and then proceed to the lender’s website.
• Fill out an online application form under Personal Loans.
• To finish the KYC procedure, upload a scanned copy of your Aadhaar card.
• The lending institution verifies your application, and your Loan on your Aadhaar Card is approved.
• The loan on aadhar card amount is subsequently credited to your account by the lending institution.

Requirements for Eligibility

The following are the usual requirements for obtaining a personal loan using just an Aadhaar card.

• You must be a resident Indian citizen between 20 and 60.
• A valid Aadhaar Card issued by the UIDAI is needed.
• You might be self-employed or hired as a professional with a monthly salary of at least INR 20,000.
• To qualify, you must have a credit score of at least 600 points.

Benefits and disadvantages

• The Aadhaar Card Loan is unsecured, so you do not need to put up any security to get authorized.
• You may repay the principal and interest over 12 to 60 months, depending on your repayment ability.
• Loans ranging from INR 20,000 to 1 lakh are accessible, with reasonable interest rates.
• Spend the borrowed money whatever you like, with no limits.
• Existing lending institution clients who apply for Aadhaar Personal Loans will be approved within hours.
• Customers who do not have lending institution accounts may apply for a loan on aadhar card entirely online, and cash is often sent within 24 to 48 hours.

Conclusion

As you can see, obtaining a Personal Loan with an Aadhaar card and no income stubs or other documentation is a piece of cake. lending institutions and financial institutions have simplified and accelerated the paperwork procedure making applying for a personal loan. You may use the funds for various reasons, including medical crises, business necessities, wedding or vacation preparations, and so on.