Instant Personal Loan on Aadhar Card
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.
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 cash loan.
How to Apply for Aadhaar Card Loan?
Apply for an Aadhaar Cash Loan with 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.
Calculate Your Personal Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Months)
months
Monthly EMI
0
Total Interest
Total Amount
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 an Aadhaar cash 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
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.
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
| Loan Amount | Up to Rs.40 lakh |
| 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 |
| Tenure | Up to 84 months |
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.
| Banks/NBFCs | Interest Rate (p.a.) | Processing Fee |
| Navi Personal Loan | 9.90% onward | Check with the lender |
| ICICI Bank | 10.25% onward | Up to 2.5% |
| HDFC | 10.50% onward | Up to 2.5% |
| Yes Bank | 13.99% onward | Up to 2.5% |
| Kotak Mahindra | 10.25% onward | Up to 2.5% |
| Axis Bank | 12.50% onward | Check with the lender |
| IndusInd Bank | 11% onward | 2.5% and above |
| IDFC FIRST | 12% onward | Up to 3.5% |
| Bajaj Finserv | 13% onward | 4% onward |
| Aditya Birla Capital | 14% onward | Up to 2% |
| Home Credit | 19% onward | Up to 5% |
| IIFL | 24% | 2% onward |
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)
| Year | Principal Paid | Interest Paid | Total Payment | Outstanding Loan Balance |
| 2022 | Rs.14,052 | Rs.6,199 | Rs.20,251 | Rs.85,948 |
| 2023 | Rs.22,887 | Rs.7,489 | Rs.30,376 | Rs.63,059 |
| 2024 | Rs.25,260 | Rs.5,118 | Rs.30,378 | Rs.37,798 |
| 2025 | Rs.27,879 | Rs.2,500 | Rs.30,379 | Rs.9,920 |
| 2026 | Rs.9,921 | Rs.206 | Rs.10,127 | Rs.0 |
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:
- 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.
- 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.
- 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.
- 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.
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
Ans: Yes, if you have an Aadhaar card with accurate details, you could get a Rs.10,000 loan on Aadhaar card provided you fulfil other eligibility criteria set by the concerned lender.
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
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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