Aadhaar Card Loan: How To Apply For Personal Loan On Aadhaar

A personal loan is typically unsecured debt, which means the borrower is not required to offer the lender any security in the form of collateral. Also, the borrower is not required to disclose the purpose of the loan, so the money can be used in difficult situations such as to meet unexpected medical expenses or for other expenditures like an international vacation, weddings, buying expensive gadgets, and home repairs among others.

In fact, personal loans have gained popularity as one of the best ways to borrow money for a variety of purposes because a borrower is not required to provide any collateral.

Furthermore, if the lender is confident that the borrower can repay the principal and interest on time and in full based on submitted documents, a personal loan can be obtained in a matter of hours through a simple application process.

These records could be the PAN or Aadhaar card, pay slips or proof of business income from the previous six to twelve months, and bank account statements, among others.

However, with the emergence and growing acceptability of the Aadhaar Card as a consolidated single document of proof for various functions, lenders are now extending loans based on the borrower’s Aadhaar Card. This saves time and the headache of lengthy paperwork.

Loans Based On Aadhaar

All Indian citizens are given a unique 12-digit number called an Aadhaar number by the government after taking their biometrics including fingerprints and iris scans.

A loan based on the Aadhaar Card requires the least amount of paperwork because when applying for the loan, applicants are required to present their Aadhaar Card as their primary KYC (know your customer) document. This helps the lender to expedite the verification process for the loan approval thanks to biometrics information with the Aadhaar Card.

Steps To Apply For A Personal Loan With Aadhaar

One must first check which lenders, be it banks or NBFCs, accept the Aadhaar Card as a primary source of verification for the approval of a personal loan.

Once the preferred lender is selected, all one needs to do to apply for a personal loan with the Aadhaar card is to complete an online personal loan application and enter the Aadhaar number.

One needs to simply give the lender their address and proof of income and allow them to conduct background checks using the Aadhaar card.

After the eligibility and verification checks have been completed to the lender’s satisfaction, the personal loan will be approved, and the money will be transferred to the borrower’s account.

Eligibility For A Personal Loan Based On Aadhaar Card

For a borrower to seek a personal loan based on the Aadhaar Card, the broad criteria mentioned below should be met. However, different lenders may differ in their eligibility criteria.

Documents:

The individual must possess a unique Aadhaar card issued to them by the UIDAI.

Age:

The borrower must be at least 21 years old when applying for a loan and no older than 60 years old when the loan matures.

Credit Score:

One must have a credit score of 750 or higher to be eligible for an Aadhaar Card Personal Loan. However, some financial institutions can still approve your loan with a credit score of 600.

Salary and Work Experience:

The minimum salary requirements and work experience required may vary depending on the lender and the city of residence.

Conclusion

Most lenders now offer loans based on the Aadhaar card as it serves as a credible source of information on the borrower’s personal details such as identity and proof of age.

It is important to note, that the Aadhaar card is one of the key documents required to avail of a personal loan from lenders. In addition, one will need to provide income proof as well to prove to the lender that he has the capacity to repay the loan.

While many banks and non-banking finance companies provide personal loans it is critical that one considers borrowing money from a reputed lender like IIFL Finance given that one needs to submit confidential information including the Aadhaar Card details.

IIFL Finance is a one-stop solution for all cash requirements of borrowers. It's simple and fully online approval procedure for loans helps borrowers to get loans quicker and more easily. For the convenience of customers, IIFL Finance offers flexible repayment options and competitive interest rates.