In India, lenders normally set loan eligibility criteria where you have to provide mandatory documents such as Aadhar cards and PAN cards. An Aadhar card is a unique identification card with 12 digits that can be given to Indian citizens by the government. Also, those foreign residents who have been in India for more than 182 days a year can get this card. This card acts as proof of address and identity for any Indian citizen.
An Aadhar card is a mandatory document every Indian must provide when applying for personal loans. Through e-KYC verification, you can get a cash loan on Aadhar without worrying about paperwork verifications. The process is simplified through e-KYC validation. You can apply for secured and unsecured cash loans with an Aadhar card, an essential e-KYC document.
How to apply for a quick loan using an Aadhaar card
For the past few years, applying for a loan in India needed you to provide many documents for verification. Nowadays, the availability of an Aadhaar card has made things easier, thanks to e-KYC validation processes. An Aadhaar card has all your details and can be used as a document showing your identity and address.
To apply for a loan using an Aadhar card, follow these steps:
- Visit the lender’s website, or you can use their app. Sign into your account.
- Select the loan type you wish to apply for.
- Provide your credentials, like your full name, Aadhar code, and phone number.
- You will get an OTP on your phone when you start the application process.
- Select your desired amount then make sure your credentials when you hit the apply button.
- The lender may request additional documents like your PAN card, salary slip, etc.
- The lender will then verify your documents. After that, you will get your amount to your account.
Role of Aadhaar Card in Getting Quick and Easy Loans in India.
An emergency comes when we least expect it. Worse, you may not have any savings you can use. In that case, getting instant cash loans could be a great way to bridge that financial gap. You can get a loan with an Aadhaar card and quickly get the funds you want.
Here’s why an Aadhar card is the most preferred option to get a loan:
Instant disbursal – With an Aadhar card, your funds will be disbursed instantly. All you have to do is provide the Aadhar card details to finish the loan verification. After verification, you will get your money in your account.
Fewer documentation required – You do not have to provide a lot of documents to be approved for the loan on an Aadhar card. The details on your card are enough to get the amount you require. Your Aadhaar card will be a sufficient legal document to complete the verification process.
Favorable interest rates– You can get a loan at an appealing interest rate with your Aadhar card. However, this fee will depend on the eligibility and the discretion of the specific lender.
No collaterals- You don’t have to provide any form of collateral when taking out a loan with an Aadhar card. It’s an unsecured loan which implies no security is needed and you can easily get it without much effort. With just Aadhaar details, you will avail of a loan without a hassle.
Who is eligible for an Aadhaar cash loan?
Even though applying for a loan with an Aadhaar card is quick, not all people qualify. The lender will assess a borrower who can pay back the loan. That’s why the lender will provide eligibility criteria that every individual should meet before applying for the loan.
Below are some requirements to meet to get a loan with an Aadhar card:
Nationality– You must be an Indian citizen.
Age- You should be at least 21 years of age.
Source of income- You should be self-employed or a salaried individual.
Credit score– Your credit utilization, income-to-debt ratio, etc., determine your credit score. A credit score of 750 is highly recommended since it will increase your chances of getting a loan at a lower rate.
The Aadhar card is a unified document for Indian citizens, you can use it to open an account with the bank or apply for a personal loan through the bank or NBFC. Every NBFC bank must collect the customer’s KYC before starting the financial activity. Aadhar card serve as an identification item for bank transactions, getting loans, or even credit cards.
Lenders consider the details in the Aadhar card reliable and essential to secure a loan. Loans secure using this card are collateral-free, paperless, and approved instantly. If you have an issue that needs cash instantly, you can apply for a quick loan using your Aadhaar card.
When you get the loan, you can use the funds to cater for anything. Be it for emergencies, repairing a home, settling bills, going for a vacation, or paying for education; you can use the amount the way you want.
However, before you take out the loan, you should have the means to repay it. Timely loan repayment is important as it will improve your score and maintain a good credit history.