In 2020, as the world inclined more towards contactless services, new digital platforms have emerged to help individuals with their day-to-day operations. Financial institutions have also further initiated to make their funding services online for easy access to the masses. With end-to-end digital facilities, customers can now apply for a loan, check account balance, or make payment with a few simple clicks.
With this move, the importance of e-KYC has increased manifold, and so has the significance of the Aadhaar card. The Government-issued, biometric-registered photo ID card helps facilitate several government-linked services. Individuals can also avail financing via advances like personal loans only with their Aadhaar card as a document verifying their identity and address. Availing an Aadhaar card loan reduces the hassles of financing, thus making the required funds easily available to individuals.
Why is an Aadhaar card vital to avail credit?
The Government of India has made it a mandate to submit essential KYC documents to avail any credit or other financial services. Aadhaar card is one such document that one must submit if he/she wishes to avail a personal loan in India.
In the current situation, borrowers can opt for online personal loans with Aadhaar card only. Apart from removing the need to submit documents physically, it also eliminates the hassle of lengthy paperwork. One can thus submit his/her Aadhaar card details and other required financial documents online when applying for the advance.
The financial institution can thus verify an applicant’s identity by using UIDAI Aadhaar biometrics and confirm the address for quick loan disbursal.
The process to apply for a personal loan on Aadhaar card
Here is a step-by-step guide to apply for an Aadhaar card loan –
- Go to the official website or mobile application of the lender.
- Fill up the loan application form with personal, financial, and employment details.
- Next, the lender runs an initial verification, following which individuals need to submit their e-Aadhaar card, and income documents online to complete this application process.
- Once borrower identity and address is confirmed with his/her Aadhaar details, the lender approves the application and disburses the amount within 24 to 48 hours.
What are the eligibility criteria of a personal loan?
To avail a personal loan on Aadhaar card successfully, individuals need to fulfil the following criteria –
- Age: Between the range of 23 and 55 years.
- Credit score: Must be 750 or above.
- Employment status: Should be an employee of a public or private sector company or an MNC.
- Monthly income: It varies based on the city where the applicant is currently residing.
These are some necessary criteria, but financial institutions may list additional requirements. In that case, customers need to satisfy those as well.
Documents required for an Aadhaar card loan
Borrowers need to submit the following essential employment and financial documents along with the Aadhaar card to avail a personal loan –
- Employee ID card issued by the employer
- Salary slip of 2 previous months
- Salary account statement of the last 2 months
While availing a personal loan via Aadhaar card is simple, individuals must also know other essential details about the advance to maximise its use
Benefits of personal loans explained
A personal loan, unlike any other credit, stands out with its specific benefits. Here are the top 3 reasons to apply for a personal loan. Applying for the advance with an Aadhaar card only makes it easily accessible to fulfil emergency funding needs.
- No end-use restriction: It is probably one of the most significant benefits of this loan. Once the amount is disbursed, borrowers can use it to fulfil any financial requirement, like higher education, travel, home renovation, etc.
- No collateral: Since these are unsecured advances, individuals are not required to submit any collateral to avail them.
- Quick disbursal: This credit option is well-known for its swift disbursal facility from select lenders. Moreover, with an online Aadhaar card, this process has become even more time-saving.
Borrowers planning to avail a quick disbursal of their personal loan can apply with lenders like Bajaj Finserv. They also offer Aadhaar card loans at attractive rates, with tenure flexibility of up to 60 months.
The lender also provides pre-approved personal loan offers to make loan processing hassle-free and time-saving. This offer is also applicable to several financial products like personal loans, credit cards, business loans, etc. Borrowers can check their pre-approved offer by submitting their contact details.
The apex credit bureau TransUnion CIBIL reported that personal loans in India registered a 134% year-on-year growth in their volume of origination in 2019 as compared to FY 2018. This data shows the growing popularity of this financial product, with primary reasons for such popularity being personal loan features and benefits. Anyone planning to avail a personal loan must, however, also assess his/her repayment capacity and apply accordingly.
