₹10000 Loan on Aadhar Card

Small emergency loans can come in handy during a financial crisis. In fact, banks and NBFCs now offer instant loans of Rs. 10,000 to Rs. 50,000 on Aadhaar card. It is like a small personal loan that can be used to repair a home, plan a vacation or even pay monthly home rent, to pay for some unforeseen circumstances or as a bridge loan for salary.

Aadhaar card loans are mainly unsecured, meaning there is no need for collateral. The biometric information stored on the Aadhaar card is used by banks and NBFCs to verify the loan application process. Applicants also require to submit a few other secondary documents. However, it must be noted that to apply for an Aadhaar card loan, one must have a valid Aadhaar Card, PAN card, and a bank account.

In case an applicant does not have a PAN card, he may be required to provide a few other documents, such as Voter ID card, passport, driving license, salary slips, and so on. There is no fixed set of documents and the list usually varies from bank to bank.

To get a quick loan of Rs 10,000, say within 2 to 3 days from the day of application, the applicant must meet the eligibility criteria of the lender and have a good credit score. Most lenders require the potential borrower to have a credit score of at least 750 to get loans under favourable terms and conditions. Though there are some financial institutions that approve a loan application of a person with a credit score of 600. But such deals mostly have compromised terms like higher interest rates.

How To Apply For A ₹10,000 Loan On Aadhaar Card?

No matter what the loan amount is, an Aadhaar card loan can be applied both offline or online. To apply for a ₹10,000 loan on an Aadhaar card online, the customer must visit the bank’s website or download the mobile loan app. The next step is to fill in the online personal loan application, provide the Aadhaar number and other personal or professional details to complete the KYC.

If the Aadhaar card of the customer is linked to the PAN and the bank account, there is no need for uploading any extra documents. After the loan application is submitted the bank carries eligibility and verification checks. Post verification the loan amount is disbursed to the individual account.

Before applying for a loan, it is good to check the eligibility criteria to avoid any disappointment. Also, it is recommended to do a comparative analysis between banks for the best offer.

Advantages Of Applying For An Aadhaar Card Loan

Some of the benefits of applying for a personal loan using Aadhaar Card are as follows:

• Aadhaar card loans have instant disbursals. Since the use of Aadhaar card eases the online verification process (e-KYC), the loan processing time becomes shorter. Ultimately it results in faster disbursal of loans.
• Aadhaar as a single document smoothens the documentation process for both consumers and financial institutions because the 12-digit UID number serves as evidence of citizenship, address, photograph, age, and identity of the applicant.

Like other personal loans, these loans are returned to the bank through monthly installments. Missing EMI payments will lower the credit score and can have other negative implications. So, one must essentially evaluate his financial standing before applying for the loan.

EMI Calculation On Rs 10,000 Loan on Aadhaar Card

The EMI on an Aadhaar card loan can be calculated manually using the formula –

P x R x (1+R)^N / [(1+R)^N-1].

Here,

P = Principal amount of the loan

R = Rate of interest

N = Number of monthly installments

So if Mr. X has taken ₹10,000 loan on an Aadhaar card at 10% p.a. interest rate for a tenure of 1 year, then

EMI = 10000* 0.01* (1+ 0.01)^10 / [(1+ 0.01)^12 ]-1= 879

Here, the total interest to be paid on the loan is Rs 550 and the total amount payable is Rs 10,550.

However, manual calculation of EMI can be tedious and increases the scope for errors. To beat these problems a personal loan EMI calculator can be used for quick results.

Eligibility for Rs. 10,000 loan on Aadhar card

In order to avail a loan of Rs. 10,000 on Aadhaar card, the borrower has to fulfill the following eligibility criteria:
Age Limit: The minimum age should be 21 years. The upper limit can extend uptill 65 years but it varies from one lender to the other.
Income: The minimum monthly income to avail of Rs.10,000 loan on Aadhaar card in Rs. 25,000.
Credit Score: The borrower’s creditworthiness score should be more than 750.
Employment Consistency: A minimum of 3 to 6 months of consistent employment is required by a few of the lenders.

Residency Consistency: Few lenders also require proof of consistent residence in the form of documents like maintenance bills, electricity bills, etc.

Conclusion

Earlier, to apply for a personal loan, one had to submit a large number of documents. But now, the UIDAI (Unique Identification Authority of India) ID on an Aadhaar card is accepted by most banks and NBFCs to offer a loan.

But it must be remembered that apart from Aadhaar card, the loan providers require a set of documents for loan processing. According to a recent circular released by the RBI, the Aadhaar card can no longer be used as an address proof. So, an individual must submit a valid address proof such as electricity bill, passport, driving license, rent agreement, etc. while applying for a personal loan.

Need funds to meet your immediate personal expenses? Then consider a loan at IIFL Finance to enjoy the benefits of easy application and disbursal of funds. For this download the IIFL Finance app and apply now. If you are worried about the EMI, choose your preferred loan amount and tenure and use the personal loan EMI calculator before applying.

FAQs

Q1. Is Aadhaar cash loan real or fake?

Ans. Yes, Aadhaar cash loans are real. They're a type of loan offered by banks and financial companies. To get one, you usually need to provide your Aadhaar card for verification. This process is called e-KYC. It's a quick way to get a loan without lots of paperwork. Go for a reputable bank or NBFC. Avoid getting lured by extremely low-interest rates offered by least known lenders.

Q2. Which app gives a loan on an Aadhaar card?

Ans. There are multiple apps that offer loans on your Aadhaar Card. The most popular ones are PaySense, MoneyView, KreditBee, CashE, Fibe, mPokket, Navi among others.

Q3. How to apply for a personal loan on an Aadhaar card without a salary slip?

Ans. If you do not have a salary slip, but wish to take a personal loan on your Aadhaar card, then you will mandatorily have to provide the bank statement for the past 6 months. You will be required to upload or submit the bank statement along with the loan application form.

Q4. How much loan can you get from an Aadhaar card?

Ans. The loan amount differs from bank to bank. Some lenders may offer an instant loan of up to Rs.20 lakh on Aadhaar card. However, the final loan amount and the interest rate offered will most certainly depend on your eligibility.