If you are a taxpayer, you must by now have understood the role Aadhaar card and PAN card play in your life when filing your income tax returns. You must quote your 12-digit Aadhaar number not just to file taxes but even while opening the bank account, claiming the government-initiated subsidies, or placing an application for a new PAN card. With the rise in Aadhaar cards as a single identity proof for the nationals, many banks have started offering Aadhar card loans.
So, what is the Aadhar card loan, and do you know how it works? Let our drive-in.
What is an Aadhar card loan?
Previously, conventional banks issued personal loans after in-depth verification of the documents like your income proof, rental agreement, identity proof etc. However, with advancements in the digital vertical, various players in this sector have begun cutting down on the document list required for availing of a personal loan. To make this loan accessible for all, minimal documentation currently is the new norm. For example, various lenders provide personal loans just through KYC in the form of PAN and Aadhaar cards. This is what an Aadhaar loan is.
With the Aadhaar card loan, you do not require furnishing bulk documents. You only require your Aadhaar and PAN card to avail of the personal loan.
Benefits and features of Aadhar card loan
Aadhar card loan come with the listed benefits and features:
∙ Instant disbursal of loan: You can get the loan disbursed instantly just by showing your Aadhaar card. Note that there is zero involvement of lengthy paperwork for sanctioning your Aadhar card loan.
∙ Simple to apply: As many individuals hold an Aadhaar card, placing an application and availing of the loan is way easier.
∙ Best for exigencies: In situations of exigency when you require funding instantly, a personal loan with an Aadhaar card can come across as an advantageous deal.
∙ Flexible repayment loan tenure: You are permitted flexible repayment tenures. The loan repayment tenure is generally up to six years.
For example, you may avail Aadhar card loan of up to Rs 20 lakh at an attractive rate of interest of around 10% p.a. To apply for the Aadhar card loan, and you only need to complete the KYC via Aadhaar and PAN.
Aadhar card loan eligibility criteria
Usually, loans are provided by lenders to the applicants who mitigate their eligibility criteria. Such parameters assist lenders in lowering their repayment default risk. Here is a list of some common parameters:
∙ Age: Minimum age must be 18 years, while the maximum age may range anywhere between 65 and 70 years.
∙ Nationality: You must be a citizen of India to apply for an Aadhar card loan.
∙ Employment: You must be a self-employed or salaried individual.
∙ Minimum income: Your income must match your minimum income criteria as prescribed by the bank lender.
∙ Credit score: Your credit score must be 750 and above for you to qualify for an Aadhar card loan.
How can you apply for an Aadhar card loan?
You can place an application for an Aadhar card loan through the online medium. All you require to do is to approach the financial institution’s website or site of the loan aggregator and look out for instant Aadhar card loans and fill up the required details. This instant loan process must be done online, and once approved, you will be able to get the required funds in the shortest time possible. Alternatively, you can even get the Aadhar card loan via dedicated loan applications, which even allow instant loan approval.
What are the steps to apply for a personal loan through an Aadhar card?
Step no. 1: Log in to your lender’s app or website.
Step no. 2: Visit the personal loan category.
Step no. 3: Check your personal loan eligibility
Step no. 4: Click on the ‘apply now’ tab.
Step no. 5: Fill up an online application form by providing your personal, professional and employment details on the app or website.
Step no. 6: You will be required to finish your KYC verification.
Step no. 7: Give your Aadhaar and PAN card details.
Step no. 8: On verification, your loan will get disbursed in your account.
What are the documents needed for an Aadhar card loan?
In the event of an Aadhar card loan, your Aadhar will serve as an identity, age, and address proof. So, all you require providing are:
∙ A current-coloured photo
∙ Income proof
∙ Bank statement
∙ PAN card
Which banks & NBFCs use Aadhar cards as the major identity proof
∙ Navi: Navi provides instant personal loans on application. Its application process is thoroughly automated and paperless. Up to Rs 20 lakh loan amount can be availed at a 9.9 percent p.a. interest rate with a flexible repayment tenure of up to six years.
∙ HDFC: Offers personal loans of up to Rs 20 lakh at a fixed rate of between 10.75 percent and 21.50 percent p.a.
∙ State Bank of India: Offers personal loan of up to Rs 20 lakh with rates starting from 9.6 percent p.a. for a repayment tenure of as high as six years.
∙ Tata Capital: Personal loan for a loan amount of up to Rs 20 lakh with a rate of interest of 11.25 percent – 14.49 percent p.a. at flexible repayment tenure of one to six years.
∙ IDFC First: Instant personal loan of up to Rs 5 lakh with a rate of interest of 12.5 percent – 18 percent p.a. and repayment tenure of one to five years.
∙ Punjab National Bank: Personal loan can go up to Rs 20 lakh at a rate of interest beginning from 7.90 percent at flexible repayment tenure of up to six years.
∙ IIFL: Personal loan available at a loan amount of Rs 5 lakh at a rate of interest beginning from 11.75 percent p.a. at repayment tenure of 5 years.
∙ Fullerton India: Personal loan going up to Rs 25 lakh at a rate of interest beginning from 11.95 percent p.a. for a repayment tenure of up to three years.
∙ Standard Chartered: Personal loan available at a loan amount of Rs 30 lakh at an interest rate of 11.49 percent onwards and repayment tenure of as high as 5 years.
∙ Kotak Mahindra Bank: Personal loan of a loan amount of up to Rs 25 lakh at an interest rate of 10.25 percent onwards for a tenure of up to five years.