Personal Loan attracts many due to its unsecured nature and lack of end-use restrictions. Whether for home renovations, wedding expenses, education fees, medical emergencies, or vacations, personal loans provide a crucial financial lifeline.
When you apply for a personal loan, banks require you to provide identity and address proofs as part of the Know Your Client (KYC) process. The Aadhaar card, issued by the Unique Identification Authority of India (UIDAI), plays an important role here. It provides a universally accepted form of identification that includes your name, address, date of birth, photograph, demographic, and biometric data.
Let’s explore how you can leverage your Aadhaar card to obtain a personal loan instantly. Learn about the necessary steps and additional requirements needed to complete the process efficiently.
How to apply for a personal loan using an Aadhaar card?
An instant loan on Aadhaar is easy to secure if you follow these steps carefully:
Step 1: Choose a bank that offers instant personal loans
When you want a quick personal loan with a simple KYC process using your Aadhaar, it’s important to look at lenders who offer a seamless online personal loan. For instance, the IndusInd Bank Instant Personal Loan has a 100% digital application process and customer-centric features. You can apply online, use your Aadhaar for quick verification, provide financial details, and get instant disbursement in your bank account. Look at the additional advantages you get:
| Competitive interest rates | The low interest rate keeps your borrowing experience affordable. |
| Higher loan amounts | You are free to borrow any amount between ₹30,000 and ₹5 lakh. |
| Flexible loan tenure | Choose a repayment tenure from one to four years and pay at your convenience. |
| No hidden charges | Meet your financial requirements without concern about undisclosed fees or charges. |
You can even use a personal loan EMI calculator to understand your Equated Monthly Instalment (EMI) amount and effectively plan your repayments.
Step 2: Initiate the online application
Visit the bank’s website or download their dedicated mobile banking app. After that:
- Navigate to the personal loan section and start the application process
- You will have to enter your PAN and Aadhaar-linked mobile number
- Now enter the One-Time Password (OTP) received on your phone number, which will redirect you to a new form
- Complete this form with your personal, professional, and financial details
- Accept the terms and conditions to proceed
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Step 3: Check out the best offers
After entering your details, the platform will assess your profile and display the best personal loan offers. These offers are tailored based on your credit score, income, and other eligibility criteria. Choose an offer that best suits your financial needs and repayment capacity.
Step 4: Provide other details
Many believe that it is entirely possible to get an instant personal loan on Aadhaar card only. However, you must also provide your income details and PAN information. These documents are necessary for verifying your financial stability and can speed up the loan application process.
Step 5: Loan approval and disbursement
After your details are verified and the application approved, the funds will be transferred directly into your bank account linked with Aadhaar.
Instant personal loan with Aadhaar | Know how it benefits both banks and borrowers
Simple verification process
Using the Aadhaar card speeds up the KYC procedures significantly. By linking biometric data with financial profiles, it allows banks to verify identities almost instantaneously. This process eliminates the need for multiple documents and physical verification, hence, reducing the total time from application to approval.
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Increased accessibility
The integration of Aadhaar with loan applications makes financial services more accessible. Due to online applications and quick verification, individuals in remote areas, those with mobility challenges, and even seniors who may find travel difficult can easily obtain personal loans.
Lower risk of fraud
Aadhaar includes biometric information such as fingerprints and iris scans, which are unique to each person. This rigorous authentication method reduces the risk of identity theft and fraud, thus, benefitting both banks and borrowers.
Quick disbursal of funds
Due to the efficiency of the Aadhaar-enabled process, once a loan is approved, the disbursal of funds can be exceptionally fast. In fact, many banks directly deposit funds into a linked bank account within minutes. This rapid turnaround is crucial for individuals who are looking for an emergency loan on Aadhaar cards for urgent needs like medical crises or unexpected travel.
Quick tips to strengthen your personal loan application
A rejected personal loan application is something you definitely want to avoid. To enhance your chances of getting your loan approved, the following are some useful strategies you can consider:
Maintain a good credit score: Pay your bills and loan EMIs on time, reduce outstanding debt, and avoid unnecessary credit inquiries to maintain a healthy credit score.
Consolidate your debts: If you have multiple loans, consider consolidating them into a single loan. This can help simplify your payments and lower your total monthly payment amount, which may make you come across as financially stable to banks.
Show stable employment: Being in a steady job with a reliable income source reassures banks of your capacity to repay the loan. If you are self-employed, be ready to provide documentation of your income streams.
Borrow only what you need: If you apply for a high loan amount that exceeds your repayment capacity, the bank may not approve your application. To avoid this, always use an online personal loan EMI calculator to gauge your future monthly instalments. This will help you determine how much you can afford to borrow and repay comfortably each month.
Accurate documentation: Make sure all your documents are up-to-date and accurate. This includes your Aadhaar, PAN, salary slips, and bank statements. Any discrepancies can lead to delays or rejection of your loan application.
Key takeaways
Obtaining an instant loan on Aadhaar cards is a streamlined and efficient process that has made credit more accessible. All you have to do is apply for the loan online, fill out the application, enter your Aadhaar details, provide financial details, and submit the application. After verification, the loan amount will be instantly disbursed to your bank account.
However, it is crucial to be aware of the terms and conditions, interest rates, and repayment obligations associated with the loan. These crucial checks can help you have an affordable and hassle-free loan experience.
With your Aadhaar card making the process simple, why wait? Get a personal loan today and meet all your financial needs effortlessly.
