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 in both 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 scan and fingerprints.
Aadhaar card not only serves as proof of citizenship but also helps individuals to get loans, open bank accounts, buy SIM cards, get Permanent Account Number (PAN) cards, apply for passports and file their income tax returns.
The main objectives of Aadhaar card are mentioned below:
Impact of Aadhaar Card on Personal Loan
Individuals who wish to avail any financial services must submit their 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 required a lot of documents, however, nowadays it is very easy to complete KYC. Banks have also started e-KYC, where the entire KYC process is digitized. As Aadhaar contains biometric data of individuals, verification is an easy and quick process.
Personal loans are taken by individuals mostly for emergency purposes. Therefore, they will need the verification process to speed up and the loan amount to reach their bank account at the earliest. The main objective 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
Although 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 is easy for bank employees. There is also a paperless mode in which documents can be submitted online known as e-KYC. In case of e-KYC, no physical documents need to be submitted 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
Frequently Asked Questions (FAQs)
- 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.
- Can I apply online for a personal loan on my Aadhaar card?
Yes, you can apply online for personal loan on Aadhaar card.
- Is it possible to apply for personal loan on Aadhaar card without PAN card?
Yes, you can apply for personal loan on Aadhaar card without PAN card. However, in such cases, you will need to provide some other documents as well as your voter ID card, passport, driving license, salary slip etc. The list of documents will be subject to the requirement of the loan provider.
- 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 a quick and easy verification process and thus, a quick application process.
- How long does it take to disburse the loan amount?
You will need to fulfill the eligibility criteria for the 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.
- Will I need a co-applicant for personal loan on Aadhaar card?
Generally, you will not need to apply with a co-applicant for a personal loan.
A GST rate of 18% will be applicable on banking services and products from July 01, 2017.