The Aadhar number is a unique 12-digit number that is made available by the government to all Indian citizens by collecting their fingerprints and iris scans.
An Aadhar card helps individuals to avail of loans, get a Permanent Account Number (PAN) card, open bank accounts, apply for a passport, buy SIM cards, and file their Income Tax Returns.
It is even possible to get a personal loan on an Aadhar card. E-KYC has made the process of verification simpler and quicker. Get your e-KYC ready, so that you can obtain the personal loan easily on your Aadhar card.
The best personal loans in the market verify the Aadhar card online through their website or mobile application. This method makes the process more convenient.
A personal loan tenure obtained through an Aadhar card can prove to be beneficial when you need funds in case of an emergency.
The repayment tenure for a personal loan on Aadhar Card is usually up to 6 years. However, the tenures are flexible for repayment.
To apply for an online personal loan based on an Aadhar card follow these steps:
- Open the lender’s mobile app or the website and fill correct information in the application form.
- Fill-in the details asked for such as your personal information and your financial and employment details
- Enter the required loan amount and repayment tenor you want
- Submit your filled application with a copy of your Aadhar card and bank statements
- Wait for approval of your loan application and the disbursement of the loan amount
- Reputed lenders normally process the loan applications faster.
Choose a lender with simple criteria
The number of documents you need to submit for the personal loan depends on the lenders. So choose a lender who has minimum documentation and simple criteria. This way, you can get a loan swiftly. General factors that are relevant for eligibility for the loan are:
- CIBIL score
- Pre-approved offer
The best personal loans are normally available on a pre-approved offer, where the lender has readily verified your profile and offers you a loan instantly. The verification process gets eliminated and there is no need to submit several documents. To find out the eligibility for your pre-approved offer, visit the lender’s website and fill out the pre-approved offer form. You can avail of your pre-approved personal loan on Aadhar Card itself because the lender has already completed the verification.
Note that to avail of the pre-approved personal loan the KYC documents have to be submitted to the lender beforehand.
- Maintain a healthy financial profile
When lenders observe that you have maintained a good financial profile, they may not insist on many documents. As maintain a good financial profile ensures your credibility.
To maintain a good credit record, you need to:
- Have a CIBIL score above 750
Your CIBIL score makes clear to the lender the history of present and past debts.
- Prove a steady source of income
Your reliability depends upon you having a job at a reputed company, without any gaps, and getting a steady pay check.
Secure a low debt to income ratio
Your DTI ratio informs the lender of your ability to repay the loan based on your current income and also your ability to service the existing debt.
All these factors together affect how easily you can get a personal loan on an Aadhar card.
You can even check with lenders for instant approval of a Personal Loan on your Aadhar Card for funding up to Rs. 25 lacs within a day of document approval.
The Aadhar card makes the personal loan process quicker. Since the KYC verification is digitized, availing a personal loan tenure simple and trouble-free. Since the Aadhar database contains information, verification by banks and NBFCs is also done quickly. This helps borrowers to obtain the loan amount promptly.