Personal loans can be used for a variety of things, such as paying for unforeseen medical costs or maintaining a home in times of need. The best benefit of using personal loans is how little paperwork you have to deal with and how quickly you can get your money. Do you know that you can obtain instant loan on Aadhaar card? You must already be aware as a taxpayer of the importance of PAN and Aadhaar while submitting your income tax returns. Read this article to learn more about how to get a personal loan with Aadhar card only.
What Is a Loan on an Aadhaar Card?
In the past, personal loans were only issued by conventional banks after receiving and validating a number of documents, such as evidence of income, a rental agreement (if applicable), several forms of identification, etc. However, as fintech has developed, more lending industry participants have begun to reduce the number of documents needed to apply for a personal loan. Minimal documentation is now the standard in order to make personal loans available to everyone. For instance, a number of lenders exclusively offer personal loans in exchange for KYC proof, such as Aadhaar and PAN. Aadhaar card loans are exactly what they sound like. You don’t need to provide numerous documents while applying for an Aadhaar card loan. Just your PAN and Aadhaar are required.
Advantages of Aadhaar Card Loan
Aadhaar card loans have the following characteristics and advantages:
Simple Application: Since the majority of people have an Aadhaar card, applying for an Aadhaar card loan is much simpler.
Ideal for Emergencies: A personal loan with an Aadhaar card may be helpful if you suddenly need money and need it now.
Instant Loan Disbursal: By simply presenting your Aadhaar card, you can immediately obtain a loan. The application and approval processes for the personal loan using an Aadhaar card do not require much paperwork.
Flexible Payback Tenure: You may choose from a variety of repayment terms. Typically, the repayment period lasts up to 6 years.
Steps to Apply for Personal Loans Using Your Aadhaar Card
Here are the processes for obtaining a personal loan using your Aadhaar card without providing any other documents, such as a pay stub.
- Visit the website of your selected lender to determine whether you are qualified for the Aadhaar loan.
- Fill out the online application in the Personal Loans section.
- A scanned copy of your Aadhaar Card will allow you to complete the KYC process.
- Your application is verified by the bank, and the Personal Loan on Aadhaar Card is approved.
- The loan amount is then credited to your bank account by the bank.
The typical eligibility requirements for a personal loan on an Aadhaar aard only are as follows.
- You should have a current Aadhaar Card issued by UIDAI.
- You must be an Indian resident citizen between the age group of 20 and 60.
- You could be a self-employed person or a professional making at least INR 20,000 per month in a salaried position.
- You ought to have a credit score of at least 600 points.
Banks and Non-Banking Financial Institutions that Rely Primarily on Aadhaar Cards as Identity Proof
HDFC: A personal loan from HDFC is available for up to 20 lakh with a fixed interest rate between 10.75 and 21.5 percent per year.
IDFC FIRST: Instant personal loan of 5 lakh with a 1–5 year term and an interest rate of 12.5%–18% p.a.
Navi: Using an automated, paperless process, Navi offers quick personal loans up to 20 lakh with adjustable terms up to 6 years starting at 9.9 percent p.a. interest.
SBI: You may be eligible for a personal loan up to $20 lakh with a term of up to 6 years and an interest rate starting at 9.6 percent p.a. and higher.
Tata Capital: Personal loans up to 20 lakh are available from Tata Capital with an interest rate range of 11.25 percent to -14.49 percent per year and a customizable term of 1-6 years.
PNB: Personal loans with flexible terms up to 6 years and interest rates starting at 7.90 percent p.a.
Fullerton India: Personal loans up to 25 lakh at Fullerton India with terms up to 3 years and interest rates starting at 11.95 percent p.a.
IIFL: Personal loans up to 5 lakh at interest rates starting at 11.75 percent p.a. for a 5-year repayment period are offered by IIFL.
Kotak Mahindra: Kotak Mahindra offers personal loans up to Rs. 25 lakh with an interest rate starting at 10.25 percent per annum and a repayment period of up to 5 years.
Standard Chartered: Personal loans up to Rs. 30 lakh are available with an interest rate of 11.49 percent (beginning) for a maximum of 5 years.
Getting a personal loan on an Aadhaar card without any further paperwork or pay slips is quite simple. The application process for a personal loan is now straightforward and quick thanks to the efforts of banks and other financial organizations. You can use the loan money to pay for a variety of expenses, including last-minute wedding or vacation costs, business demands, medical crises and anything.