Personal loans help with various purposes, like paying for unforeseen medical costs or maintaining a home. The most excellent part is the least amount of paperwork required to take out a loan. In addition, Aadhaar cards significantly decreased the number of bogus accounts. Lenders now use this new database to give fast loans to borrowers with Aadhaar.
Loan distribution has also become quick since the database easily confirms a borrower’s identification safely. It also provides digital e-KYC verification to speed up the procedure. Read this article to learn more about obtaining a personal loan on an Aadhar card.
How does it work?
Financial institutions and banks demand Know-Your-Customer (KYC) documentation whenever a borrower applies for a loan. KYC is a procedure that lenders and borrowers must follow as per government mandate. Your Aadhaar card is necessary when you submit a personal loan application. It makes it simpler for financial institutions to conduct the loan verification procedure using UIDAI Aadhaar biometrics.
Applying for a Personal Loan using Aadhaar
Lenders often advertise these loans on their websites or mobile apps. The procedure doesn’t require much time and is easy to follow. Immediately after being informed of your eligibility for a loan, you can pick how much you would like to borrow. Then, within a few hours of approval and completion of the necessary verification, the cash will be distributed to your account. The most crucial part of personal loan eligibility is to have a valid Aadhaar card.
The below-mentioned steps will show you how to avail it using your Aadhaar:
- Open the lender’s app or website and log in.
- The loan you wish to apply for should be chosen.
- Enter your contact information, including your name, phone number, and Aadhaar.
- The lender will deliver an OTP to the phone number associated with your Aadhaar.
- Following verification, the lender will display the loan amount you are granted.
- Click the “Apply” button after selecting the amount you wish to borrow.
- You may be required to provide the lender with documents like your PAN card or a pay slip.
- Additionally, they could set up a video conference to confirm your identification.
- Your loan will get approved after verification, and the amount will be disbursed within 24 hours.
Features and Advantages of Personal Loans
Quick loans are a savior in crucial times. These loans are excellent for persons in need since they have affordable interest rates and a more extended payback schedule.
Here are the things you should be aware of:
- Credit amount
Utilise adequate financing for personal and professional purposes using your Aadhaar card.
- Minimum documentation
Authorise Aadhaar e-KYC and provide income documentation immediately to obtain a loan.
- Complete transparency
You don’t need to pay additional fees when you use a lender’s services to obtain a personal loan on Aadhar card.
- Immediate approval
Due to precise qualifying requirements, applications submitted online are approved in a few minutes.
- Payment within 24 hours
Streamlined document verification allows money to be received in the bank account within 24 hours.
- No need for collateral
Borrow money using your Aadhaar card without pledging any property as collateral.
- Longer repayment term
You can widen out your payments over a maximum period for greater convenience.
Eligibility Requirements
Anyone with a current Aadhaar number can apply for this loan as their personal loan eligibility becomes relatively simple. Here are the specific prerequisites:
- The applicant’s age should range from 21 to 60.
- Aadhaar should be linked to an active phone number.
- A score of 750 or higher on the credit report.
- Must maintain a bank account.
- The applicant must reside in India.
- Should have a minimum income of 20,000 and be salaried or self-employed.
Reasons to Get a Personal Loan on an Aadhaar Card
Your name, picture, gender, address, date of birth, phone number, email address, and biometric information are all included in your Aadhaar. By permitting eKYC, you lessen the need for paperwork. You need not provide a copy of your PAN card if your Aadhaar card is connected to it. It involves a central regulatory authority that needs to be notified, verification can happen immediately. Additionally, since you are not required to submit these documents physically, you don’t have to worry about bringing copies.
Bottom Line
Personal loans are a lifesaver and extremely important, helping us handle unanticipated household bills and avoid financial situations. Due to the growing significance of secure digital databases, applying for a personal loan on Aadhar card with no additional paperwork has become remarkably simple. The paperwork procedure is becoming easier and faster. Thanks to banks and other financial organisations, which enables personal loan applications easily. You can use the loan to pay for various needs, including last-minute travel plans or a medical emergency.
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