February 19, 2024
personal loan using an Aadhaar card

To meet a variety of financial needs, personal loans can be used. Earlier, the borrower had to face a long and stressful approval and verification process for personal loans. For a personal loan application to be successful, both private and public sector banks require a number of documents. But since the introduction of the Aadhaar card, fewer documents are required, and the loan approval period has gradually reduced. In this post, we will know how to apply for a personal loan on Aadhaar card, so read all the steps. To get instant loans from 50000 to 500000.

Read: PM Kisan Aadhaar Link – How to do PM Kisan e-KYC and Check Status Online

Since the loan process has been made very easy for bank personnel to execute identity verification, it is very easy to apply for a personal loan using your Aadhaar card. The documentation process, also known as e-KYC, can be completed online with the Aadhaar information of the borrower. Since the borrower does not need to submit any physical documents for e-KYC, it is a convenient option. Various banks also offer fast loans in lieu of submitting a scanned copy of an Aadhaar card.

How to Appy for a Personal loan on Aadhaar Card?

Digitalization and the introduction of the Aadhaar Card have made it simpler to submit an online Personal Loan application. Your Aadhaar Card is the sole document you need to present as verification of your KYC, and even most banks and Non-banking finance companies now consider it as identification, birth, residence, and nationality proof. Despite the fact that it isn’t required, having an Aadhaar card makes it considerably simpler to apply for a personal loan. If the borrower provides their Aadhaar details, the verification process is easier for bank workers to finish. Additionally, there is a paperless mode known as e-KYC where documents can be uploaded online. With e-KYC, the person is not required to submit any physical documents. Several banks also provide quick loans in exchange for the borrower uploading a scanned copy of their Aadhaar card.

Since the Aadhaar card was introduced, applying for a personal loan has become relatively simple. The Aadhaar database contains information such as the name, permanent address, date of birth, and many other details, which means that the verification process from banks and non-banking financial companies can be completed without delay.  People can then collect their loan amount more rapidly as a result of this.

The way to apply for a personal loan using an Aadhaar card is as follows.

Step 1: Visit the websites of banks or financial aggregators if you would like to compare and check out the offerings of personal loans online.

Step 2: Please add your details and the amount you are looking for on the loan application form.

Step 3: Using the online submission system, you can upload a scanned copy of your Aadhaar Card and other documents.

Step 4: A verification will be carried out on your application and the supporting documents.

Step 5: Once the loan has been sanctioned, you will receive the sanctioned amount in your bank account immediately after it has been approved.

Requirements for an Aadhaar Card Loan

The following requirements must be met in order to be eligible for personal loans:

  • There is a requirement that you must be a resident of India to be eligible for a loan.
  • Age requirements for applicants range from 23 to 58.
  • The candidate must be employed by an MNC, public, or private enterprise.

Documents Required for Aadhaar Card Loan

The list of paperwork needed to apply for a personal loan using an Aadhaar card is as follows.

  • Photos in passport size.
  • Provide additional KYC documentation, such as a passport, PAN, driver’s license, and voter ID.
  • The most recent three months’ worth of bank statements.

Get Instant Loan on Aadhaar Card

In order to enable people to take use of a handful of services in both the private and public sectors, the Indian government introduced the Aadhaar Card in 2010. All Indian citizens are given a unique 12-digit number called an Aadhaar by the government after collecting their fingerprints and iris scans.

In addition to serving as identification, an Aadhaar card enables holders to apply for loans, open bank accounts, purchase SIM cards, obtain Permanent Account Number (PAN) cards, obtain passports, and file income tax returns.

The following list includes an Aadhaar card’s primary goals:

  • Each Indian citizen has their own unique identity.
  • A unique card might be used to verify an individual’s age, ID, and address. People won’t need to carry a variety of documents.
  • Individuals can access a number of government services without the aid of intermediaries or brokers.

Impact of Aadhaar Card on Personal Loan

Individuals must provide their Know Your Customer (KYC) documents in order to use any financial services. To prevent money laundering, the government has mandated that banks and other financial organizations gather client KYC information. In the past, KYC required a ton of documents, but today it can be accomplished extremely quickly. Additionally, banks have begun e-KYC, which completely digitizes the KYC procedure. Verification is an easy and quick process because Aadhaar has the biometric information of the individuals.

When it comes to personal loans, both private and public sector banks have highly severe validation and verification procedures. At first, obtaining a loan required the applicant to submit a lot of paperwork, and the approval process took a while. However, since the Aadhaar card was introduced, fewer documents are needed, and the time it takes for a loan to be approved has decreased.

People primarily use personal loans for emergency situations. They will therefore need a speedy verification process and an early deposit of the loan funds into their bank accounts. An Aadhaar card is primarily intended to speed up the procedure. A personal loan can now be obtained relatively easily thanks to the digitization of KYC verification. The Aadhaar database has the person’s personal information, hence it takes less time to approve the loan.

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