The Aadhaar card was introduced by the Government of India in 2010 to serve as a primary identity proof of an individual besides facilitating certain services in the public and private sectors. However, the Aadhaar card can also add leverage for individuals looking to avail a loan to upscale their business operations or expansion. Borrowers or business owners can thus opt for a personal loan on Aadhaar card for convenient funding.
The Aadhaar card is an all-encompassing document that prospective borrowers can use to apply for and avail a personal loan using Aadhaar Card.
There are certain benefits of holding an updated Aadhaar card as well, as it can provide borrowers with the advantage of instant loan approval, given that all other criteria are met. SO, here are the essential details you need to know when availing a loan with Aadhaar card.
The importance of Aadhaar card for personal loans
While applying for a personal loan with a financial institution, it is compulsory to submit the requisite KYC documents. These documents are crucial as they can help lenders establish borrower identity before extending loans. With the introduction of the Aadhaar card, the loan verification process has now become much faster and hassle-free. Plus, it also cuts down documentation if one applies for a personal loan on an Aadhaar card.
The emphasis on Aadhaar evaluation as an essential loan application procedure stems from the fact that it contains the key biometric details of an individual. This document alone serves as a proof of address, birth, name and citizenship. Another essential impact is that one can get an instant loan on an Aadhaar card. This particularly comes in handy when one is looking for a personal loan to tide over a business’s emergency funding needs such as shortage of working capital or expenses required for business expansion.
If borrowers are willing to avail a personal loan using Aadhaar card, it is advised to know the application method and other necessary requirements.
Easy steps to apply for a personal loan on Aadhaar card
The following pointers can help you understand how to apply for a personal loan using an Aadhaar card.
Step 1: Compare loan offers
First, one should visit the official websites of reliable financial lending institutions to compare the loan offers. Business owners are recommended to choose a loan that comes with an affordable interest rate, and repayment in easy EMIs spread over a convenient repayment tenure. It is, therefore, an important step to follow in choosing the right personal loan lender for business funding.
Step 2: Proceed to apply for the loan
After checking the prospective lender’s loan eligibility criteria and other crucial details, business owners can then proceed to apply for the loan via the lender’s official website.
Step 3: Complete verification requirements
Once the loan application has been submitted, a representative can call the applicant for verification and ask about the loan usage plan for business operation or expansion.
Step 4: Submit Aadhaar card copy
The next step to follow to avail a personal loan on Aadhaar Card is to submit the scanned copy of the Aadhaar card along with income documents.
If the applicant meets other crucial eligibility criteria such as a standard credit score and spotless past repayment behaviour, he/she is likely to receive an instant loan on Aadhaar Card.
Documents required for an Aadhaar card loan
Listed below are the general documents that most financial institutions ask for alongside the Aadhaar card. However, some lenders can also ask for additional documents.
- For salaried individuals:
- Proof of income
- The last 3 months’ salary slips
- Photos
- For self-employed individuals:
- PAN Card
- Income proof
- Passport-size photographs
- The latest ITRs certified by a Chartered Accountant
Benefits of Aadhaar card loan for your business
Availing a personal loan on an Aadhaar card can be beneficial for one looking to avail funds to streamline his/her business operations or to fulfil business expansion goals.
- Easy application process
Applying for an Aadhaar card loan is easy, requires minimum documentation and can offer quick disbursal of the loan amount.
- One all-encompassing document
An individual’s Aadhaar card can be used as an age proof, residence proof as well as proof of citizenship, thus establishing all essential factors determining the loan eligibility.
- Instant loan on Aadhaar card
Since the Aadhaar Card serves as an all-inclusive document, applicants are likely to receive quick loan approval, and thus fulfil their business’s funding aspirations with ease.
Financial institutions like Bajaj Finserv also offer personal loans with Aadhaar card at attractive interest rates that make loan repayment affordable for the borrower.
The lender also provides pre-approved offers on financial products such as personal loans, business loans, and credit cards. Borrowers can thus enjoy the benefit of loan processing without any hassle and in minimum time. One can check the pre-approved offer by providing his/her essential contact details.
Therefore, knowing how to apply for a personal loan on an Aadhaar card can help in receiving quick loan approval, thereby benefiting individuals requiring funds for their businesses. Besides minimum documentation and an easy application process, instant loan on Aadhaar card is also handy when it comes to meeting emergency personal funding needs.
