How To Get An Instant Personal Loan With Aadhaar Card?

Personal Loans

As 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.

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 a small cash loan on Aadhaar card, you don’t have to furnish documents in bulk. You just need your PAN and Aadhaar card to avail of a personal loan.

How to Apply for Aadhaar Card Loan?

Upon verification, your loan will be disbursed into your account. Note that the loan application timeline could vary from lender to lender.

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 instant loan on Aadhaar card 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

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 get a personal loan simply by entering your PAN and Aadhaar details.

Interest Rates and Other Charges for Aadhaar Card Loan

Note that the table is for educational purposes only and the processing fee is deducted upfront from the loan approved.

Note* – Navi doesn’t charge processing fees for personal loans of Rs.50,000 or above.

Latest Interest Rates of Aadhaar Card Loan

Check and compare the loan options and their interest rates offered by leading banks & NBFCs.

Disclaimer: Note that this table is for educational purposes only and the final rate offered is solely at the concerned lender’s discretion. Navi doesn’t take responsibility for any interest rate changes that may occur in the due course of time.

How to Calculate EMI on Aadhaar Card Loan?

You can use an online personal loan EMI calculator to check EMI. All you need to do is enter the loan amount, tenure and interest rate to check your monthly repayment obligations. Let’s understand this with an example:

Let’s say you have taken a loan of Rs.1 lakh for a tenure of 5 years. The interest rate charged is 9.9%. Upon calculation, your EMI would be Rs.2,531.

Here’s a detailed breakdown of your repayment details (yearly)

This table is for illustrative purposes only.

Alternatively, you can avail of the Aadhaar loan through dedicated mobile applications of financial institutions like Navi that allow instant as well as small cash loans on Aadhaar card.

Things to Remember before Applying for Aadhaar Card Loans

Here are a few things to consider before taking a personal loan on an Aadhaar card:

1. Compare lenders: Make sure to compare lenders before signing up for a personal loan. Check interest rates, convenience (paperless and hassle-free application), processing fee and other factors before choosing a lender. Also, go for lenders who are reliable.
2. Check your credit score: Lenders check your credit score to gauge your creditworthiness. There’s always a risk of getting your loan application rejected if you have a low credit score. So, check your credit score from time to time to avoid any kind of hassle during loan eligibility checks. In case your credit score is low, read our blog on ways to improve your CIBIL (credit bureau) score.
3. Apply for the amount you need: Here’s another small tip. Try to apply for the amount you need and not the amount you are pre-approved for. This could help you reduce your debt burden substantially. Let’s say you’re pre-approved for a loan of Rs.5 lakh but you need only Rs.1 lakh. We would suggest you apply for Rs.1 lakh. However, if you are confident regarding your repayment capacity, you could go for an amount that’s up and above your initial requirement.
4. Processing fee: A processing fee is a fee that you have to pay upfront to the lender at the time of disbursal. The amount is usually deducted from the approved loan amount. This fee varies from lender to lender. A higher processing fee could mean a lower disbursed amount.

Also read: How to apply for an emergency loan

How to Apply for a Personal Loan with Navi? | From ₹10,000 to up to ₹20 Lakh

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.    

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.

FAQs on Aadhaar Card Loan

Before you go…

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. 

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