Apply Personal Loan Online On Aadhaar Card With No Paperwork

Personal Loan on Aadhaar card

Personal Loan on Aadhaar card

Personal Loans deal with our immediate requirements of money. You can think of any situation, and if you need money to plan that, you can get it covered through personal loans. The only problem people face while preparing for a loan is paperwork. Paperwork can scare anyone, right? So won’t it be nice to devise a way to get a loan without it?

Aadhar can come to your rescue. Aadhaar is one of the most extensive biometric ID systems we have today and it can save you from the complicated paperwork you are scared of.

In this article, we will go in-depth about availing personal loan on Aadhaar Card without any complicated paperwork.

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What Is An Aadhaar Card And How Can It Help To Get You a Loan?

Aadhaar is a biometric-based system through which you can prove your identity and whereabouts. From your retina scan to your thumbprint, address to your registered phone number, you can confirm your identity at any time. Feed your Aadhaar number, and all your information will be available in a single spot.

World Bank Chief Economist Paul Romer described Aadhaar as “the most sophisticated ID program in the world”.

This 12- digit Aadhaar number can help you to safely navigate your personal loan journey, and help you to make it quick and effective.

Benefits of Aadhaar Card Loan

Let’s see some of the most crucial benefits, we can get while applying for a personal loan on Aadhaar Card:

  • Banks can easily verify the loan applicant’s date of birth, photo, and address.
  • Applying for an instant loan online becomes more accessible through an Aadhaar card as it makes the verification paperless and quick.
  • e-KYC can be done almost instantly, as all the required data is available. All you have to do is feed your 12-digit Aadhaar number or fingerprint, and details will pop up on your computer’s screen in no time.
  • Aadhaar cards are linked to mobile numbers and require a 2-step verification process. So no other person can misuse the information provided by the applicant. You can also change your mobile number if any fraudulent activity is detected.
  • Aadhaar Card is a certifiable identification number issued by using UIDAI to the resident of India free of charge.

Aadhar contains the biometric information of the person applying for the loan, which makes the process quick and paper free. You may need some other KYC document like PAN, Driving License, or Voter ID as residence proof, but you don’t need to focus on some serious in-depth documentation while applying for a loan on Aadhaar Card.

Let’s move ahead and look into the topic more thoroughly by understanding the application process.

But before that

“Have you checked the status of your Aadhaar card?”

It is mandatory for the candidate to be aware of the Aadhaar Card status before going into the application process.

How To Check The Status Of Aadhaar Card

You may have recently applied for the Aadhaar card, or you need to do some corrections in the details.

In case the spelling of your name is incorrect or your address is wrong, you can go to the official website of UIDAI to make the required corrections.

Nowadays, the process is quick and effortless. You don’t need to go to the Government offices and be in a queue for long hours.

The whole process of application and availing of important information is quick and digitalized.

  • If you have applied for a new Aadhaar Card or have reapplied in case of modifications on your Aadhaar card, then you can check if it is active or not through many options.
  • You can trace the status of your Aadhaar card processing post submission and its available date.
  • After finishing the Aadhaar card registration, the physical copy of the Aadhaar card is expected to reach you in less than 90 days.
  • This is applicable if the complete verification procedure is completed and your application is authorized for approval of the Aadhaar Card.
  • You may check the Aadhaar card’s reputation via online and offline modes.
  • Before you obtain the physical card Aadhaar, eAadhaar is available online, and the same may be downloaded.
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How Do I Use My Aadhaar Card For a Personal Loan?

Personal loan on Aadhaar card is conveniently applied online these days.

Here is a step-by-step guide on how to apply for a personal loan using an Aadhaar Card:

  • Visit Bank’s or Loan aggregator’s website and go through different offers. You can compare different offers and analyze what suits you best.
  • After choosing your best plan, click ‘Apply Now.”
  • Provide your primary information like name, contact details, age, and employment type.
  • The next step requires PAN details and an Aadhaar number. Feed your Aadhaar details here.
  • Let banks get your information from the UIDAI database and complete your KYC process.
  • Once you click on the option “Accept”, the system will start processing your application.
  • Your approved loan amount, interest rate, repayment tenure, and monthly EMI will appear on your screen.
  • You can expect a callback from the Bank or Loan aggregator to verify your details.
  • After verification, you must submit a scanned copy of your Aadhaar and other relevant documents online to proceed with your loan request.
  • After the final verification of your documents, the sanctioned amount will be credited to your bank account.

The government of India has made it mandatory for Banks and Financial institutions to collect the KYC of their customers. This step is compulsory to avoid money laundering.

Since Aadhaar is a biometric-based identification system, the authentication of the applicant has become fast.

Before applying for a loan, customers must know their eligibility. In some cases, instant disbursal of personal loans is based on the discipline of your documents and credit score.

As the process of availing loan is paperless and quick, it will cut short most of the hassle that can occur at a later stage.

Know your credit score here, and choose better offers with Buddy Loan.

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Eligibility Criteria For Aadhaar Card Loan

One has to fulfill certain requirements to be eligible for availing a personal loan on Aadhaar Card.

The following are the general eligibility criteria for a Personal Loan on Aadhaar Card:

  • The applicant should be an Indian citizen.
  • Applicants must own a valid Aadhaar Card provided by UIDAI.
  • Age: The applicant should be at least 21 years old while applying for the loan up to 60 years.
  • Salary: The minimum salary needed to avail of a personal loan through an Aadhaar card is Rs 20000 per month. (recheck data)
  • Credit Score: The credit score while applying for a personal loan through an Aadhaar card must be 750 or above.
  • Work experience: You must have a total work experience of 2 years and at least 1 year of experience with the current organization.

The applicant should meet the eligibility criteria mentioned above. Failing to do so, Banks and NBFCs can reject your loan application altogether. Rejections and hard inquiries can affect your CIBIL score and that might affect your future plans and investments.

You can compare offers from different Banks and NBFCs and choose what works best for you.

Buddy Loan is one of the biggest loan aggregators in India that disburses loans at lower interest rates starting at 11.99% p.a. They also have customized EMI options that help you easily work your credit score.

List of Banks and NBFCs Using Aadhaar Card as Primary Identity Proof:

We can avail of a loan from any NBFC, financial institution, or bank to help you find a loan with lower interest rates. Also, to enhance your credit score. By maintaining a high credit score, your lenders will disburse or approve loans quickly.

This means you’re unlikely to miss out on the repayments or EMIs.

Read more: Latest Personal Loan Interest Rates in India

Banks/NBFCs Interest Rates(p.a.) Tenure  
HDFC Bank 11.00% onwards Up to 6 years Apply Now
SBI 10.65%-15.15% Up to 6 years  Apply Now
ICICI Bank 10.75% onwards 1-6 years  Apply Now
Axis Bank 10.49% onwards 1-5 years  Apply Now
Kotak Mahindra Bank 10.99% onwards 1-5 years  Apply Now
IndusInd Bank 10.49% onwards 1 to 5 years  Apply Now
IDFC First Bank 10.49% onwards Up to 5 years  Apply Now
Bajaj Finserv 11.00% onwards Up to 5 years  Apply Now 
Tata Capital 10.99% onwards Up to 6 years  Apply Now

 Applying for a loan online using an Aadhaar card is a wise decision now and in the future because you might want your interest rates to be on the lower end. Thus, your credit scores will increase with your timely payments, making it easy for you to avail of loans more easily and quickly. 

Also Read: 5 Deciding Factors Lenders Consider In a Loan Application.

Documents Required To Apply For Personal Loan on Aadhaar Card:

Aadhaar Card Loan is the most convenient form of personal  loan as it only requires very minimal documentation, such as the KYC form.

Still, the applicant should keep at least one more KYC form, but in maximum cases, only Aadhaar can get you a personal loan.

  • Duly filled personal loan application form with passport-sized photographs.
  • KYC-related documents- PAN, Aadhaar, Voter Id card, or Driving License
  • Identity proof: Passport, Aadhar card
  • Address Proof: Utility Bills, passport, Aadhar card
  • Income Proof: Salary slips of minimum 2 months and ITR returns
  • Any other document required by the lender
  • Office address proof, residence proof or office ownership for self-employed.

In Buddy Loan, you can apply for a personal loan online with an aadhaar card with minimal documentation. This e-KYC document approves your loan by increasing your chances of eligibility at a faster rate.

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Benefits of Aadhaar Card Loan:

  • Aadhaar has a person’s biometric data, so it becomes easy for lenders to verify your identity quickly.
  • It gives you access to many services and loans.
  • You can avail of a personal loan and get quick approval based on e-KYC.
  • This document proves multiple things like an individual’s citizenship, age, photo, address, and identity.
  • Aadhaar is sufficient to confirm an applicant’s citizenship, age, address, and photo.
  • It facilitates faster disbursal of loans.
  • Sometimes submitting a copy of Aadhaar is enough.
  • Since its arrival Aadhaar has proved to be a time-saving tool. Documentation has become quite easy for consumers and financial institutions.
  • Aadhaar card acts as a permanent identity of your address and credit score, helping lenders to honor your loan approval instantly. Indeed, the best Aadhaar or PAN card might not get your loan, but it allows you to verify your identity and make loan availability easier and quicker.

Read more: Planning to Get Married? Here’s How to Manage Your Wedding Finances.

Keynote:

“Will it increase your credit history?” 

  • The credit score rating varies from 350 to 800, and the application is processed primarily based on the score. There are chances that the application might be getting rejected if the score is low.
  • A better credit score brings down the interest rate, but on the other hand, a lower credit score will increase the Interest amount significantly.
  • In India, there are vivid ways to increase the credit score by paying your dues on time, paying the EMIs completely, by not holding the previous record of debts. One should be careful while availing any credit card facilities, as failing to pay the dues can be reflected badly on your credit scores.
  • Making too many credit inquiries can violate your credit stability. Once in 4-6 months is sufficient to check your credit score and then act responsibly. Hard inquiries done by banks are looked upon. Whenever you have applied for a credit product, Banks and NBFCs inquire about you and pull out your credit bureau report to check if you are worthy of the loan. The more hard inquiries you have made on your name, the more chances your CIBIL score will be affected by it. 

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FAQs 

How Do I Check If I Can Apply For a Personal Loan?

Lenders usually make it clear on their websites. Basic requirements like age, salary, and nationality to getting a personal loan are mentioned on every platform already.
You can use a personal loan eligibility calculator on the website of different Banks and NBFCs. You can check out the latest offers on loans and different services on the Buddy Loan website.

Can I Take a Personal Loan on  Aadhaar Card?

People take loans on Aadhaar Card. Since personal loans are unsecured financial instruments, you don’t need to submit your collateral. However, it is necessary to submit KYC documents to take a personal loan on an Aadhaar card.

Are There Any Advantages To Applying For a Loan on Aadhaar Card Only?

Aadhaar is a biometric-based system through which you can prove your identity and whereabouts. e-KYC can be done almost instantly, as all the required data is available. All you have to do is feed your 12-digit Aadhaar number or fingerprint, and details will pop up on your computer’s screen in no time. Since Aadhaar is a biometric-based identification system, the authentication of the applicant has become fast.

What Is The Repayment Tenure For Aadhaar Loan?

By maintaining a high credit score, your lenders will disburse or approve loans quickly. This means you’re unlikely to miss out on the repayments or EMIs. Based on your repayment abilities, you can repay the principal and interest amount in flexible tenures ranging from 12 to 60 months.

Can You Apply For a Personal Loan on Aadhaar Card Without Salary Slip?

 It is compulsory for the applicant who wishes to take a personal loan on Aadhaar Card without salary slip to provide their bank statement of at least 6 months. They are required to submit the bank statement with their loan application form.
So, an instant personal loans on Aadhaar card without salary can cause no big issues, as you are still producing your bank statements and your transactions are quite functional.

 Why Is It Important To Have a Good Credit Score To Get an Instant Loan on Aadhaar Card?

A better credit score brings down the interest rate, but on the other hand, a lower credit score will increase the Interest amount significantly. By maintaining a high credit score, your lenders will disburse or approve loans quickly. Credit score mirrors your creditworthiness and ability to pay your EMIs on time.
If you wish to take a personal loan on Aadhaar card only, it will be good for the applicant if they have a credit score of around 750. There are high chance that a loan will be denied altogether to someone with a low credit score.

Can an Unemployed Candidate Take a Loan on Aadhaar Card?

A loan on Aadhaar card for unemployed candidates is possible if the applicant has a good CIBIL score. Someone with a bad CIBIL score will be denied a loan opportunity, no matter if they are salaried, self-employed, or unemployed.
Candidates have to produce their bank statements as proof of their EMI payment capacity.

 Is Prepayment Allowed For a Personal Loan on Aadhaar Card?

Specific lenders may allow you to prepay your loan amount. But it is strictly based on their framed rules. You may be charged prepayment fees to avail of their services. Kindly go through the rules and regulations of the Bank’s or NBFCs website to learn more about this.

Is There Any Lower Limit For an Aadhaar Card Loan?

Most lenders have set their limit to 25,0000. The amount may vary from one company to another. You can request a call from a representative to fulfill all your queries.

How To Avail of a Personal Loan of Rs 10000 Through an Aadhaar Card?

All you have to do is fill up a form for a Bank or NBFC you are interested in. You can also check the Buddy Loan website to compare and select the best offers you want. Attach a copy of the Aadhaar card with it, as it has all the required information available in one place. All you have to do is to enter a 12-digit number, and all crucial information will be on the screen.
Candidates can also get a digital copy of their Aadhaar Card by logging into their account on the UIDAI website.

How Do Banks or Financial Institutes Decide The Maximum Loan Amount?

The first point Banks and NBFCs keep in mind is the monthly EMI should be at most 30% to 40% of their take-home salaries. If the applicant has taken other loans, that is also considered while calculating the personal loan amount. For self-employed applicants, Banks consider their balance sheets and go through their recent profit and loss statements.
Self-employed candidates can also present their liabilities, which they may have, to the banks while applying for the loan.

How Do I Get a Small Cash Loan on An Aadhar Card?

Candidates interested in applying for small cash loans should fill up the application process, stating the amount they will need. They are required to attach a copy of their Aadhaar card with it.
Aadhaar is a biometric ID with all the essential information in one place.
The government of India has made it mandatory for Banks and Financial institutions to collect the KYC of their customers. This step is compulsory to avoid money laundering.
Since Aadhaar is a biometric-based identification system, the authentication of the applicant has become fast.

How Long Do Lenders Take To Disburse The Loan Amount?

Aadhaar Loans are the quickest to be credited to your account. If you have applied for an instant loan on an Aadhaar card, the financial institute of your choice can have access to all your information in one place. Aadhaar is a biometric-based system through which you can prove your identity and whereabouts. From your retina scan to your thumbprint, address to your registered phone number, you can confirm your identity at any time. Sometimes it takes only 24 hours to get the loan amount credited to your account.
The applicant needs to do research before applying for a loan. It is advised to the customers to counsel from a third party loan aggregator like Buddy Loan. On Buddy Loan, you can go through different offers and decide what works best for you. As they say, comparison can help you in making smart decisions, you should be aware of all the given loan offers available in the market, tenure, EMI and the processing fee applied.
Let us know, if you have any questions, mention your queries below, we are always open for discussion.