Personal loan: Personal loans have become a popular financial vehicle for many to quickly obtain funds for an array of personal reasons. Whether you need to cover an unexpected medical emergency or home renovation, a personal loan comes with flexible repayment terms and no collateral. Personal loan applications were usually manual and required a lot of paperwork in the past, now with digitisation, it’s quick too. With the Internet working in mysterious ways today, an Aadhaar card has simplified and eased the process of applying for a personal loan.
If you are planning to apply for a personal loan with Aadhaar card, here’s a complete guide about the eligibility criteria, verification process and procedures — even if you have lost your Aadhaar card.
What is an Aadhaar Card and Why it is Necessary for Personal Loan?
Aadhaar card, issued by the Unique Identification Authority of India (UIDAI), is a 12-digit identity number based on an Indian citizen’s biometric and demographic data. It validates your identity, address and age — all factors needed for applying for personal loan.
Applying for personal loans through an Aadhaar card also eases the process. It is an all-in-one document that negates the need to carry other documents or copies of your documents, it’s a single proof of identity and address for each individual in India. For many lenders, especially ones that offer instant loans, the Aadhaar-based eKYC (electronic Know Your Customer) helps them approve and disbursal of funds in a jiffy.
Eligibility Factors for a Personal Loan with Aadhaar Card
Eligibility criteria for a personal loan on Aadhaar the place of residence, job or employment before you opt to avail a personal loan Aadhaar card.
Age Requirements
All personal loan providers will have a minimum and maximum age for applicants, but the ranges may differ slightly from lender to lender: most of time you need to be at least 21 years old and no more than 60 years.
Employment Type
You have to be a W-2 employee or 1099 contractor. Your income and job profile is taken into consideration when lenders assess your financial stability.
Minimum Income
A reliable source of income is critical. According to most lenders, a specific amount of income per month (anywhere between ₹15,000 and ₹25,000) is necessary to comfortably repay the loan.
Credit Score
Having a high credit score (I’d recommend above 700) is likely to make the import license application process more likely to succeed. Your history is a reflection of not only how you have made repayments, but also your money management.
Indian Residency
You need to be an Indian resident. As the Aadhaar card is provided to Indian residents, it also acts as a proof of residency.
Process of Personal Loan Verification Via Aadhaar Card
Once you are eligible, the next thing is to get verified and which becomes easier with Aadhaar card.
Step 1: Loan Application
Choose the lender (bank/NBFC/fintech company) of your choice and apply for a personal loan online or by visiting the closest branch. Introduce yourself and your loan amount.
Step 2: Aadhaar-Based eKYC Verification
You will be asked for your Aadhaar card details at the time of applying to prove your identity through eKYC. The eKYC is the process of using your Aadhaar data to verify one’s identity and address over mobile (SIM) or internet, which in turn provides you convenient access to mobile (SIM) or internet services.
Step 3: Document Submission
Though the Aadhaar card proves handy for identification purposes, you may require to submit other documents. These include:
- Evidence of Income i.e. salary slips or bank statements
- Proof of employment, such as offer letter or history free from termination
- PAN card details to be verified for tax purpose
Step 4: Approval and Disburment of the Loan
Your loan application is approved after your lender has a chance to review your application, and verify your identity, income and credit score. When Aadhaar-based approval is enabled, this process is much faster—working within hours. Approval is followed by credit directly to the applicant’s bank account.
Advantages of Using Aadhaar Card for Personal Loans
Simplified Documentation
Aadhaar card can be used as ID and address proof, which saves you from gathering two different identity cards like voter ID or passport & driving license. Everything is connected to one card which makes the application process easy and quick.
Faster Approval
Due to Aadhaar-enable eKYC validation, lenders can avail of your information immediately. It fast-tracks the processing of loans, and ensures that the loan is disbursed quickly, sometimes even within hours. Old and outdated system of submission the physical forms, documentation and going for offline procedures to get verification is avoidable.
Safe and Secure
The Aadhaar data base is completely safe, so that your confidential information is not at any risk. — They only use genuine data-fetching channels to get and verify your details, So it’s safe and secure.
Access to Online Loans
Many fintech companies use Aadhaar card information to offer instant personal loans. You can even get approved and have your cash in hours instead of days, all from the comfort of home.
What to Do if Your Aadhar Card Loss?
Misplacing important identity cards such as an Aadhaar card can be very stressful at times, especially when you want to utilise them to avail financial services. But have no fear. Here’s what you can do if your Aadhaar card lost:
Download an e-Aadhaar
You can also get your Aadhaar on mobile through mAadhaar app or download a soft copy of your Aadhaar card, commonly known as e-Aadhaar from UIDAI website. Enter your Aadhaar number or Enrolment ID (EID) and verify it using an OTP received on the registered mobile number.
Retrieve Lost Aadhaar Details
And if you have lost your Aadhaar card and do not remember your Aadhaar number, UIDAI gives the option to retrieve it through your registered email address or mobile number. “Retrieve Aadhaar” option on UIDAI website: Steps to retrieve your lost or forgotten Aadhaar card online Step 1: Go to the official website of UIDAI (uidai.gov.in) and click on ‘Retrieve Lost EID/UID’.
Update Details If Necessary
At times, individuals misplace their Aadhaar card and they realise they need to update some personal details. You have to either go to the nearest Aadhaar enrolment center or use the online facility for modifications. Keep your mobile number and other linked details updated.
Carry Alternate Document Proof
In the event that you’re unable to use your Aadhaar card when applying for a loan, you can offer other ID proofs such as a PAN or voter ID or passport, along with the Aadhaar number for verification.
How to Get a Personal Loan if Aadhaar Card is Lost?
If you have lost your Aadhaar card, still can apply for a personal loan with e-Aadhaar or dependent documents of the Aadhaar. Get your downloaded e-Aadhaar card before you start the application process because most lenders recognize it as an accepted form of identification.
Or some lenders may provide the option of a manual KYC verification for those, who are unable to complete the eKYC. This includes providing hard copies of identity and address proofs, followed by a physical verification process.
step4 In case your Aadhaar card is lost forever, then ensure to apply for reissue of the card through UIDAI. You can still perform e-KYC based on regular procedure (after your Aadhaar has been reissued) for any future applications.
How to use Aadhaar for Personal Loan?
Review Your Credit Score: Make sure you have a good credit score before submitting loan application. A higher score makes you eligible for more.
Compare Interest Rates: Not all the lenders give the same rate of interest. Investigate the best deals with loan comparison tools.
Check Aadhaar Details Accuracy: Check if there are any errors in your aadhar records as it may get you rejected. 13 Keep contact information current.
Loan Tenure and EMI Planning: Opt for a tenure with EMIs that are comfortable based on your monthly cash flows.
Conclusion
Taking a loan with Aadhaar card is easy, convenient and time-saving. The Aadhaar Card’s one-point identity verification is a value game changer in the loan application process, eliminates forms and documentation and finally eKYC ensures authentication becomes quicker. You can still apply for a personal loan with us even if you don’t have your Aadhaar card and we will guide you through the alternate identification options.
Yes, given that there are minimal documents required, and approval is much quicker along with safe online platforms that one can access investing in a personal loan through an Aadhaar card to fulfill any emergency requirement seems to be very efficient. Do note that you must satisfy the eligibility conditions and ensure your Aadhaar details are seeded to avert any issues while applying. From urgent needs or life savings to crisis funds or personal dream purchases, Aadhaar-enabled instant loans always come in handy when you require instant money.
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