An Aadhaar Card is mainly used as proof of identity and address for residents of India. It can also be used for KYC when applying for financial products such as personal loans from banks, financial institutions, and lending agencies.
You can apply for a ₹20,000 instant loan on Aadhaar Card with minimal documentation. Depending on the lender and your eligibility, you may also get the loan at a suitable interest rate.
Below, you can learn more about the interest rates, eligibility, documents, EMI, features, and application process for a ₹20,000 loan on Aadhaar Card.
Interest Rates & Charges for ₹20,000 Aadhaar Card Loan
Interest rates and charges for a ₹20,000 loan on Aadhaar Card can differ from one lender to another.
Before applying for an instant loan, compare the interest rate, processing fee, and other charges. This can help you understand the total cost of borrowing and compare different Aadhaar Card loans.
| Factors | Charges |
| Interest Rate | 9.99%* p.a. onwards |
| Processing Fee | 2.5% to 6% + GST |
| Pre-closure Fee | NIL |
Eligibility for ₹20,000 Loan on Aadhaar Card
When applying for a ₹20,000 personal loan using your Aadhaar Card, you need to meet the lender’s eligibility requirements.
The exact conditions may differ between lenders. Here are some basic requirements for a ₹20,000 instant loan:
| Criteria | Eligibility |
| Residence | You must be a citizen of India |
| Age | At Least 21 years old |
| Aadhaar Card | Have a valid Aadhaar Card |
| Credit Score | 650 or above (Depends) |
Documents Required for ₹20,000 Loan on Aadhaar Card
Your Aadhaar Card is the main document used for KYC verification when applying for this loan.
However, some lenders may ask for additional documents during verification. These may include:
- Aadhaar Card
- Proof of income
- Address proof
- Bank statements
- Other financial documents required by the lender
You can also get small cash loans on Aadhaar starting from Rs. 1000 to a few Lakhs, depending on your eligibility and the terms set by the lender.
| Check Other Aadhaar Loans | |
| 50000 Loan on Aadhaar Card | 10000 Loan on Aadhaar Card |
| 5000 Loan on Aadhaar Card | 1000 Loan on Aadhaar Card |
Apply for a Personal loan now!
₹20,000 Aadhaar Card Loan EMI Calculator
An Aadhaar Card can be used for KYC when applying for Aadhaar Card loans. Before taking a loan, it is useful to calculate your EMI so that you know how much you may need to repay every month.
You can use an EMI calculator to estimate the EMI on your ₹20,000 Aadhaar Card loan.
Enter the following details in the calculator:
- Loan amount
- Interest rate
- Loan tenure
₹20,000 Aadhaar Card Loan EMI Calculation
You can also calculate the Equated Monthly Instalment or EMI for a ₹20,000 loan using the formula below:
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ N-1]
Where:
- EMI = Equated Monthly Installment
- P = Principal amount or loan amount
- R = Interest rate
- N = Number of monthly instalments
For example:
Suppose you take a personal loan of ₹20k for 24 months at an interest rate of 12% p.a.
Using the EMI formula:
P = ₹20,000
N = 2 years or 24 months (the tenure in months will be used in the formula)
R = 12% = 12/12/100 = 0.01, after converting it into a monthly interest rate
= [20,000 x 0.01 x (1 + 0.01) ^ 24] / [(1 + 0.01) ^ 24] -1
= Rs. 941/-
The monthly loan repayment amount will be Rs. 941/-.
Apply for a Personal loan now!
Features & Benefits of ₹20,000 Instant Loan on Aadhaar Card
A ₹20,000 instant loan on Aadhaar Card comes with several features that can make the borrowing process easier.
- Instant Disbursal: Instant disbursal can make the loan process faster. By providing your Aadhaar Card for verification, you can complete the loan procedure.
- Minimal Documentation: You can apply for a ₹20,000 loan or another preferred loan amount on Aadhaar Card with minimal paperwork.
- Interest Rate: You can get a ₹20,000 instant loan starting at 10.50% interest rate onwards p.a.
- No Collateral Required: You can apply for a ₹20,000 loan on Aadhaar Card without pledging any collateral.
- Easy Repayment: You can choose a repayment tenure based on the options available to make repayment of the ₹20,000 loan more manageable.
- Documents: Aadhaar Card can be used as identity and address proof when applying for a personal loan.
How to Apply for ₹20,000 Personal Loan on Aadhaar Card from Buddy Loan
Steps to Apply for a Personal Loan with Buddy Loan
- Step 1: Visit buddyloan.com or download and install the Buddy Loan app on Android or iOS.
- Step 2: Open the Personal Loan Application Page. Enter your mobile number and verify it using the OTP received.
- Step 3: Enter the loan amount you need and your personal email address. Then choose the Personal Loan option.
- Step 4: Select your employment type — Salaried, Self-Employed, or Student — and choose your salary mode as bank or cash.
- Step 5: Enter your work details, including your company name, years of service, and designation.
- Step 6: Enter your personal details, including your full name, PAN, address, date of birth, and gender.
- Step 7: Enter your communication address and income details, and click the Submit button.
Ready to take the next step? Apply for a Personal loan now!
How to Avoid Rejection of ₹20,000 Aadhaar Card Loan
Your loan application can be rejected if you do not meet the lender’s requirements or if the details in your application are incomplete or incorrect.
Here are some ways to reduce the chances of rejection:
- Maintain a good credit score: A good credit score can improve your chances of getting a ₹20,000 loan approved. Paying bills and EMIs on time can help you work towards a credit score of 650 or above.
- Provide correct information: Make sure the personal details, income, address, and other information in your application are accurate and up to date.
- Avoid multiple loan applications: Applying for several loans at the same time can raise concerns for lenders and may increase the chances of rejection.
- Manage existing debts: Try to repay or manage your existing debts before taking another loan. A high debt-to-income ratio may affect your loan approval chances.
Download the Buddy Loan App Now!
One solution to each of your financial needs at your fingertip.
Scan to download now
