The Indian Government came up with an Aadhaar card around 2010 to assist you as an individual to enjoy specific services in both private and public sectors. Aadhaar number is nothing but a distinctive 12-digit numerical representation of your identity offered by the Indian government to you after collecting your fingerprints and iris scans.
An Aadhaar card not just serves as a citizenship proof but even assists you as an individual to get loans, open savings or current account, purchase SIM card, apply for passport, get a PAN or permanent account number card or file an income tax return or ITR. Through Aadhar card, you can avail Aadhar card loan, or loan on LIC or any other variant of personal loan.
Major objective or goal of opting for an Aadhaar card are as mentioned –
∙ Single identity for every citizen in India.
∙ Single cards can be utilised as ID proof, address proof and age proof. So, you do not require carrying various identification documents.
∙ Different government services may be availed by you with zero need to help brokers or middlemen.
What’s the impact of an Aadhaar card on your personal loan?
You as an individual may want to opt for financial services to provide your KYC or know your customer documentation. The Indian government has made this compulsory for the lenders or banks to collect your KYC details to stop money laundering. Previously, various documentation was required for the know your customer documentation, however, it is way simple now with just an Aadhar card. Lenders have even started the e KYC, where the whole KYC procedure has been digitised. As Aadhaar contains your biometric details, verification is easy, simple and a fast process.
Public and private sector lenders do stringent verification and validation when it is about personal loan. Initially, many documents were required to be provided by you to get a loan or credit option approved due to which the approval process was extremely long. However, with the introduction of the Aadhaar card, very less documents are now required and the processing time taken for your loan approval has lowered.
Personal loans are usually availed by you often for exigency purposes. Thus, in such a scenario, you may want the authentication procedure to be instant so that the loan proceeds are disbursed to your bank account instantly i.e., as early as possible. The major goal of Aadhar card is to speed up your loan approval process. As Aadhar is a digitised version that instantly verifies your identity, you can avail a personal loan very quickly. Your personal details are found on the government’s Aadhar database, thus, the time taken for the loan approval is even reduced.
Also Check: Aadhar card loan
What’s the method to use for Aadhaar to apply for the personal loan through the online mode?
Even while it is not compulsory for you as an individual to provide your Aadhaar, it is way simpler to get a personal loan through one. The process is easier for bank employees or staff to complete authentication if the Aadhar details are provided by you. Also, there is even an e-KYC mode wherein the documents may be submitted online called e-KYC. In the scenario of e-KYC, zero physical documentations are required to be submitted by you. There are different lenders that can offer you an instant personal loan if you upload the scanned version of your Aadhaar card.
What are the features and benefits of an Aadhar card?
∙ Aadhar card loan by nature is an unsecured credit option, which means you do not require providing any security to be eligible.
∙ Depending on your repayment potential, you may repay your principal and interest constituent in flexible repayment tenures ranging anywhere between 1 year and 5 years.
∙ You may opt for the loan proceeds beginning from Rs 20,000 to enjoy competitive rate of interest on the proceeds loaned.
∙ Can use the funds from loan to pay any sort of expenditures with zero restriction on the end usage of the funds.
∙ You, as an existing bank consumer, can apply for the Aadhar card loan and get the funds processed and disbursed within a few hours on the same day of placing the loan application.
∙ You as a non-banking consumer can finish your whole loan application process online and get your funds processed and disbursed within 24 to 48 hours.
Frequently asked questions (FAQs) on Aadhar card loan
∙ Can you avail a personal loan on an Aadhar card?
Yes, obviously you can avail an Aadhar card loan, a variant of personal loan from any lender, may it be a bank or NBFC.
∙ Is it possible for you to apply for a personal loan on Aadhar with zero need for a PAN card?
Yes, you can place an application for personal loan using your Aadhar card without the need for any PAN card. But, in such scenarios, you will be required to provide a few other crucial documents like voter ID card, driving license, passport, salary slips and others. The document list is subject as per the loan provider’s requirement.
∙ How long does the loan application procedure take when you place an application for a personal loan using an Aadhar card?
It is generally a very quick procedure as the Aadhar card contains your important biometric data. The biometric permits simpler and faster authentication and thus disbursal.
∙ How long does it take for loan proceeds to get disbursed?
You must meet the eligibility parameter before placing a loan application to qualify and avail the loan proceeds. The authentication procedure does not take very long. If all required documents are provided and authenticated on time, then the loan proceeds will generally be disbursed within 2-3 days.
∙ Will you need a co-applicant for a personal loan on an Aadhar card?
Usually, it is not mandatory to apply with a co-applicant for an Aadhar card loan.
It is very easy to avail a personal loan through Aadhar card with zero need for submitting salary slips and various other documents. With financial institutions making the process of documentation quicker and simpler, applying for personal loan is a hassle free and stress-free process. You can use the loan proceeds to fund your expenditures like business needs, medical emergencies, vacation or wedding planning and others.