How to get instant loan on Aadhaar card
The Government of India launched the Aadhaar card in 2010 to enable people to enjoy certain services, both in the public and private sectors. Aadhaar number is a unique 12 digit number provided by the government to all Indian citizens by collecting their iris scans and fingerprints.
Aadhaar card not only serves as proof of citizenship but also enables individuals to obtain loans, open bank accounts, purchase SIM cards, obtain Permanent Account Number (PAN) cards, apply for passports and file income tax returns. helps.
The main objectives of Aadhaar card are mentioned below:
Impact of Aadhaar Card on Personal Loan
Individuals who wish to avail any financial service need to submit Know Your Customer (KYC) documents. The government has made it mandatory for financial institutions and banks to collect customer KYC details to prevent money laundering. Earlier KYC used to require a lot of documents, however, nowadays it is very easy to complete KYC. Banks have also introduced e-KYC where the entire KYC process is digitised. Since Aadhaar contains biometric data of individuals, verification is an easy and quick process.
| fees and charges | is realizable |
| Rate of interest | Starting at 1.33% per month |
| loan processing fee | The sanction varies from 2% to 8% of the loan amount. The processing fee is deducted upfront from the loan sanctioned. |
| Overdue EMI/Principal | 2% interest per month on overdue EMI on the loan amount. |
| check bounce | Rupee. 500/- each time. |
| debt cancellation | No extra/hidden charges are levied. The processing fee will also remain intact. |
Personal loans are mostly taken by individuals for emergency purposes. So, they need the verification process to be done as soon as possible and the loan amount should reach their bank account as soon as possible. The main purpose of Aadhaar card is to speed up the process. KYC verification has gone digital and getting a personal loan has become very easy. The personal details of the individual are found in the Aadhaar database, so it takes less time to approve the loan.
Method of using Aadhaar to apply online for personal loan
Though it is not mandatory for individuals to provide their Aadhaar card, it is very easy to get a personal loan using it. If Aadhaar details are provided by the borrower then the process of completing the verification becomes easier for the bank staff. There is also a paperless mode in which documents can be submitted online called e-KYC. In case of e-KYC, there is no need to submit any physical documents by the individual. Various banks also provide instant loans if the borrower uploads the scanned copy of Aadhaar card.
List of Non-Banking Financial Companies (NBFC) and Banks that use Aadhaar Card as the main proof of identity
- HDFC Personal Loan
- SBI Personal Loan
- Indiabulls Personal Loan
- ICICI Personal Loan
- PNB Personal Loan
- Capital First Personal Loan
FAQs
1. Can I get a personal loan on my Aadhaar card?
Yes, you can use your Aadhaar card and apply for a personal loan with any bank or NBFC.
2. Can I apply for a personal loan online against my Aadhaar card?
Yes, you can apply for personal loan against Aadhaar card online.
3. Is it possible to apply for a personal loan on Aadhar card without PAN card?
Yes, you can apply for a personal loan on Aadhar card without PAN card. However, in such cases, you will need to provide your voter ID card, passport, driving license, salary slip etc. along with some other documents. The list of documents will be subject to the requirement of the loan provider.
4. How long does the loan application process take when you apply for a personal loan on Aadhaar card?
It is usually a quick process as the Aadhaar card contains the biometric data of the applicant. Biometrics allows for a quick and easy verification process and thus, a quick application process.
5. How long does it take for disbursement of the loan amount?
You must satisfy the eligibility criteria for loan application. The verification process does not take much time. If all the documents are submitted and verified on time, the loan amount is usually disbursed within 2 to 3 days.
6. Will I need a co-applicant for Personal Loan on Aadhaar Card?
Generally, you will not need to apply for a personal loan with a co-applicant.
note: A GST rate of 18% will be applicable on banking services and products from July 01, 2017.