How To Get An Instant Personal Loan With Aadhaar Card
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2 May 2022As a taxpayer, you must have understood by now the role of PAN and Aadhaar while filing your income tax returns. You have to quote your 12-digit Aadhaar not only to file taxes, but also while opening a bank account, claiming Government-initiated subsidies, or applying for a new PAN card. With Aadhaar’s growing importance as a single-most identity proof for Indians, many financial institutions have started providing Aadhaar card loans. So, what is an Aadhaar card loan and how does it work? Let’s dive in.
Table of contents
- What Is Aadhaar Card Loan?
- Features and Benefits of Aadhaar Card Loan
- Eligibility Criteria for Aadhaar Card Loan
- How to Apply for an Aadhaar Card Loan?
- Documents Required for Aadhaar Card Loan
- Interest Rates and Other Charges for Aadhaar Card Loan
- Banks and Non-Banking Financial Companies (NBFCs) That Use Aadhaar Card as Main Proof of Identity
- Final Word
- FAQs
What Is Aadhaar Card Loan?
Earlier, traditional banks used to issue personal loans after receiving and verifying a number of documents, including income proof, rental agreement, if applicable), multiple identity proofs, etc. However, with the advancement in the fintech space, several players in the lending sector have started cutting down on the list of documents required for availing of a personal loan. To make personal loans accessible to all, minimal documentation is the new norm. For instance, several lenders offer personal loans only via KYC (in terms of documentation) in the form of Aadhaar and PAN. This is exactly what an Aadhaar card loan is.
With an Aadhaar card loan, you don’t have to furnish documents in bulk. You just need your PAN and Aadhaar card to avail of a personal loan.
Features and Benefits of Aadhaar Card Loan
Aadhaar card loans come with the following features and benefits:
- Instant Loan Disbursal: You can avail a loan instantly just by furnishing your Aadhaar card. There is no lengthy paperwork involved in the application and sanction of the Aadhaar card personal loan.
- Easy to Apply: Since most individuals have an Aadhaar card, applying for availing Aadhaar card loan is much easier.
- Ideal for Emergencies: In case of an emergency when you need funds immediately, a personal loan with an Aadhaar card can prove to be beneficial.
- Flexible Repayment Tenure: You are allowed flexible tenures for repayment. The repayment tenure is usually up to 6 years.
For instance, you can get an Aadhaar card loan up to Rs.20 lakh at attractive interest rates starting at 9.9% p.a. with Navi. In order to apply, you just need to complete your KYC through PAN and Aadhaar.
Also Read: What Are The Benefits Of Availing A Personal Loan Of Rs. 40,000?
Eligibility Criteria for Aadhaar Card Loan
Generally, loans are offered by lenders to borrowers who meet their eligibility parameters. These parameters help lenders minimise their risk of repayment default. Here’s a list of common parameters:
- Age: Minimum age 18 years. Many lenders require a minimum age of 21-25 years. The maximum age ranges from 65 years to 70 years.
- Nationality: You should be an Indian citizen to apply for an Aadhaar card loan.
- Employment: You should be a salaried employee or a self-employed individual.
- Minimum Income: Your income should match the minimum income criteria prescribed by the lender.
- Credit Score: You should have a credit score of 650 and above to qualify for the loan.
Also Read: CIBIL Score Calculator And How To Check CIBIL Score Online
How to Apply for an Aadhaar Card Loan?
You can apply for an Aadhaar card loan online. All you need to do is to visit the website of the financial institution or the loan aggregator and look for an ‘instant loan on Aadhaar card’ option Aadhaar to fill in the necessary details. The loan application process would be completed online and you would be able to avail funds within the shortest possible time.
Alternatively, you can avail of the Aadhaar loan through dedicated mobile applications of financial institutions like Navi which allow instant as well as small cash loans on Aadhaar card.
How to Apply for A Personal Loan Using Aadhaar Card
Apply for an instant personal loan on your Aadhaar card by following these steps:
- Log in to Your Lender’s Website or App.
Register or log in to your preferred lender’s website or app. You may have to sign up through your mobile number or create a login ID with your Email and preferred password.
- Go to the Personal Loan Section
Navigate to the personal loan section if the lender offers multiple types of loans or other products, like home loans, education, loans, student loans, mutual funds, fixed deposits, etc.
- Check Eligibility Criteria
Make sure to check your eligibility before applying. This could include monthly income, credit score, age, and employment details.
- Click on “Apply”
Hit the apply button to start your personal loan application process.
- Provide Loan and Personal Details
This would include your name, Aadhaar or PAN details, company you work for, monthly income, the loan amount and tenure. Usually, for personal loans, the repayment tenure could be extended up to 6-7 years. For Aadhaar card loans, only your Aadhaar or PAN details are required as documents.
- Eligibility Check
The lender would perform an eligibility check based on your personal details. The final amount and interest rate would be decided by the lender based on various parameters like credit history, repayment capacity, etc.
- Link your Bank Account
Provide your bank account details to get the loan amount directly into your account. Your EMI would be auto-debited from your bank account.
Upon verification, your loan will be disbursed into your account. Note that the loan application timeline could vary from lender to lender. With Navi, you can get instant personal loans just with Aadhaar or PAN card within minutes. Here’s how.
Navi offers instant personal loans based on your Aadhaar and PAN number. The steps are extremely simple and hassle-free. Follow these steps to get Aadhaar card loans with Navi:
Step 1: Download the Navi App
Step 2: Register with your mobile number
Step 3: Enter your personal details, including monthly income, company name, etc.
Step 4: Provide loan details and tenure
Step 5: Select loan amount and tenure
Step 6: Provide your bank details
If you’re eligible, the loan amount will be disbursed into your account within a few minutes.
With Navi, you can get ₹10,000 to up to ₹20 lakh loan on an Aadhaar card in a quick and hassle-free way.
Documents Required for Aadhaar Card Loan
In the case of Aadhaar card loans, your Aadhaar card acts as identity proof, address proof and age proof. So, all you need to give is:
- A recent coloured photograph
- Proof of income.
- PAN Card.
- Bank statement.
At Navi, the loan application process is 100% paperless. You can avail a loan simply by entering your PAN and Aadhaar numbers.
Interest Rates and Other Charges for Aadhaar Card Loan
| Interest Rate | 8% p.a. – 20% p.a. |
| Processing Fee | Up to 6% of the loan amount + GST |
| Foreclosure Charges | Up to 5% of principal due |
Note that the table is for educational purposes only.
Banks and Non-Banking Financial Companies (NBFCs) That Use Aadhaar Card as Main Proof of Identity
- Navi: Navi offers instant personal loans on the app in a completely paperless and automated process up to ₹20 lakh starting at 9.9% p.a. interest with flexible tenures up to 6 years.
- HDFC: Provides a personal loan up to ₹20 lakh with a fixed interest rate of 10.75%-21.5% p.a.
- SBI: You can avail of a personal loan up to ₹20 lakh with an interest rate ranging from 9.6% p.a. and above for a tenure up to 6 years.
- Tata Capital: Personal loans up to ₹20 lakh with an interest rate of 11.25%-14.49% p.a. and flexible tenure of 1-6 years.
- IDFC FIRST: Instant personal loan of ₹5 lakh with an interest rate of 12.5%-18% p.a. and a tenure of 1-5 years.
- PNB (Punjab National Bank): Personal loans up to ₹20 lakh at interest rates starting at 7.90% p.a. With flexible tenures up to 6 years.
- IIFL: Personal loans ₹5 lakh at interest rates starting from 11.75% p.a. with 5-year repayment tenure.
- Fullerton India: Personal loans up to ₹25 lakh at interest rates starting from 11.95% p.a. for tenure up to 3 years.
- Standard Chartered: Personal loans up to ₹30 lakh at 11.49% (starting) interest rate for tenure up to 5 years.
- Kotak Mahindra: Personal loans up to ₹25 lakh at 10.25% p.a. interest rate (starting) for repayment tenure up to 5 years.
Final Word
An Aadhaar card is more than identity proof, you can also get an instant personal loan during an emergency. Follow the steps to apply and get the personal loan amount in your account within minutes. Download the Navi app on Android or iOS to get a personal loan today.
Also read: How to apply for an emergency loan
FAQs
Ans: Yes, a processing fee would be charged by the lender for processing and sanctioning your loan. This fee would have to be paid when you apply for the Aadhaar personal loan.
Ans: The repayment tenure depends on the lenders lending the loan. However, usually, a tenure ranging from 12 months to up to 84 months is allowed for repayment of the loan.
Ans: Yes, Aadhaar card loans are allowed for newly joined employees also. You just have to fulfil the age and income criteria of the loan and then you can apply for the loan online or offline as per your suitability.
Ans: Usually, you don’t require a co-applicant to apply for a personal loan on an Aadhaar card. But, having a co-applicant will increase your chances of getting a personal loan.
Ans: Personal loans are usually unsecured loans that don’t require any collateral or guarantor. Such instant loans can be availed easily if you have a good credit score and meet all the parameters set by your lender.
Ans: A small amount of personal loan starting from ₹5,000 or above is known as a small cash loan. Such loans are also unsecured loans and don’t require any collateral or guarantor as such.
Ans: Usually, such loans are provided online. The entire application process usually takes somewhere between 5-15 minutes and the amount is disbursed almost instantaneously.
Ans: There are many benefits of applying for a loan with your Aadhaar Card. They are:
1) No income proof requirement
2) Instant disbursal
3) Minimal documentation
4) Easy application process
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