Guide: How to Get Personal Loan Using Aadhaar Card

The concept of Aadhaar card was first developed in the year 2010 by the Government of India to provide Indian citizens with a universal proof of identity. Aadhaar card holds a unique 12-digit number assigned to every Indian citizen that contain thorough details of the individual such as name, permanent address, date of birth, photograph, and holds fingerprint and Iris scan data. The Aadhaar card has utilities beyond just an address proof and can be utilised for various purposes, such as –

• Opening of a savings account.
• While applying for a PAN card.
• In the application of SIM card.
• Filing Income Tax Returns.
• For availing personal loan on Aadhaar card.
• For availing various government subsidies directly.

Aadhaar Card is an essential document in many procedures and availing a personal loan on aadhar card. Public and private sectors rely on this important document because of the safety measures coupled with it. The integration of Aadhaar has helped borrowers in two major ways –

• Reduction in turnaround time for loan approval – Since financial companies don’t have to handle multiple things concerning the identification and authentication of a citizen, so the turnaround time for processing the loan application is reduced.
• Reduced documentation & cost of the loan – One of the Aadhaar card benefits is that it reduces the need to produce several documents for KYC compliance. Financial institutions now rely on Aadhaar card for cross verification and KYC compliance of a borrower’s application. The reduced paperwork makes it easier for as well as the cost of operations involved in processing a loan application.

How to avail a personal loan using the Aadhaar card?

1. Qualify the eligibility criteria Borrowers need to qualify the following personal loan eligibility conditions to be able to acquire a personal loan using the Aadhaar card.

• Borrower must be an Indian citizen.
• He/she must be between the age group of 23 to 55 years.
• Borrowers have to be a salaried individual working with an MNC, public, or private firm.
• Individuals should maintain a good CIBIL score of 750 and above.
• Minimum salary of the individual depends upon their city of residence.

2. Produce the following documents Aadhaar card is an important KYC document that borrowers need to provide while applying for personal loans. Subsequently, there are several other documents which are needed by financial companies for the processing of personal loan on Aadhaar card. Following are such documents that need to be produced –

• KYC documents such as Aadhaar card, Voter ID card, driving license, etc.
• Employee ID card.
• Salary slip for the last 2 months.
• Previous 3 months’ financial statement of salary account.

The method of loan application gets easier with Aadhaar card as it reduces the extra paperwork needed by financial companies. They can easily validate and cross-check customer information with Aadhaar card. Furthermore, non-banking financial companies like Bajaj Finserv makes the personal loan application process even simpler for borrowers by introducing pre-approved offers on loans. Such offers are available on several financial products that include personal loans, home loans, business loans, etc. and many more. Customers can check out their pre-approved offer by submitting their name and contact number. Borrowers of personal loans on Aadhaar cards should make a financially beneficial decision by utilizing a personal loan calculator. Individuals can consider the following factors before applying for a personal loan from a reputed financial company.

• Loan tenor – Reputed financial companies provide customers with a flexible tenor to choose from and hence they can choose a suitable tenor depending upon their financial standing. Borrowers can choose a long tenor if they want lower EMIs.
• Rate of interest – Having a decent credit score and substantial monthly income will help individuals acquire loan at an attractive rate of interest.

Therefore, customers should take the above factors into account before applying for a personal loan on Aadhaar card and follow the simple procedure to avail loan subsequently.

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