Aadhar Card Loans ranging from INR 1000 to INR 50 lakhs can be availed by just providing your Aadhar Card Number, PAN Card Number, and bank account number. Getting a loan on an Aadhar card is easy with Aadhar Card loan apps. One can use the loan apps to get an instant personal loan online or an Urgent Loan 10,000. The Loan on Aadhar is an unsecured loan, i.e., no collateral is required to cover any type of financial necessity. The applicants can provide an Aadhar Card and other documents online to complete the verification process, also known as e-KYC. It’s better to link the mobile number to the Aadhar card and PAN card to make the process faster and smoother.
Features of Aadhar Card Loan
Mentioned below are the features of an Aadhar Card Loan:
- Flexible Loan Amount: One can apply for a loan online between INR 5000 and INR 5,00,000.
- Quicker Eligibility Check: One can get a quicker eligibility check by providing all the necessary details.
- Collateral Free Loan: One can apply for a loan on Aadhar without any collateral or guarantors, which is a hassle-free process.
- Affordable Interest Rates: Choose a loan that is affordable to repay in terms of interest rates.
- Paperless Work: A business loan can be applied online without visiting a bank or waiting for working hours.
- Easy Repayment: The loan can be repaid easily over a convenient period of 1-5 years.
- Disbursal in 24 hours: The Aadhar Card loan gets disbursed within 24 hours of its approval.
- Loans on Low Credit Cards: Individuals with low CIBIL scores can also apply for loans through Aadhar Card.
Eligibility Criteria
Mentioned below are the eligibility parameters that are to be met in order to apply for Aadhar Card Loan:
- The applicant’s minimum age should be 21 years.
- The applicant’s maximum age should be 60 years.
- An applicant shall be either a self-employed or salaried individual.
- The minimum salary of the applicant shall be INR 20,000 or higher.
- The employment status of the applicant should be MNC, public, private, or self-employed.
Fees and Charges
Mentioned below are the fees that are to be charged when an instant loan on an Aadhar Card is applied for:
| Particulars | Fees |
| Personal Loan Interest Rates | 12.99% p.a. onwards |
| Loan Amount | INR 25,000 to INR 12,00,000 |
| Processing Fees | Up to 5% + applicable taxes |
| Loan Tenure | 12-60 months |
| Prepayment Charges | 0 |
| Foreclosure Charges | 0 |
| Cheque Bouncing Charges | INR 500 + Taxes |
| EMI Bounce Charges | INR 500 + Taxes |
| Cash Collection Charges | 1% of the collection amount of INR 50,000 and above in cash plus taxes |
| Interest Rate | Starts from 1.33% per month |
| Interest on Overdue EMIs | 2% p.m. on the overdue EMI or Principal loan amount. |
| Loan Cancellation | No additional/hidden charges were levied.Processing fees will also be retained. |
Documents Required
1. In the case of Salaried Employees:
- Identity Proof (Any 1)
- PAN Card
- Valid Indian Passport.
- Aadhaar Card.
- Valid Driver’s License.
- Valid Voter ID.
- Address Proof (Any 1)
- Aadhaar Card.
- Utility bills (Electricity, water, gas) are dated within the last 60 days.
- Valid Voter ID.
- Valid Indian Passport.
- Valid Driver’s License.
- Income Proof
- The last 3 months’ bank statements of the salary account
3. In the case of Self-Employed Applicants:
- Identity Proof (Any 1)
- PAN Card
- Valid Indian Passport.
- Aadhaar Card.
- Valid Driver’s License.
- Valid Voter ID.
- Address Proof (Any 1)
- Aadhaar Card.
- Valid Indian Passport.
- Valid Voter ID.
- Valid Driver’s License.
- Utility bills (Electricity, water, gas) are dated within the last 60 days.
- Income Proof
Upload the following document –
- The bank statements for the last 3 months are in PDF format.
Benefits of Loan on Aadhar Card
- Borrowers can get instant access to loans as all lender banks use Aadhar cards to complete their Know Your Customer (KYC).
- It is basically a primary document that serves as multiple proofs of citizenship, age, address, photo, and identity.
- The aadhar card can also be used for e-KYC, i.e., online verification.
- The application process gets quite simple and fast.
- Also, when the PAN card is linked with an Aadhar card, one can get the benefits in one go.
- Instead of providing a copy of your Aadhar card, you may also provide only a 12-digit UID number.
How do you apply for a personal loan using an Aadhar card?
Step 1: Visit the bank’s or financial aggregator’s websites to check and compare available personal loan offers.
Step 2: Click on “Apply online”.
Step 3: Complete the Aadhar loan application form, which is available online, by providing personal, professional, and employment details.
Step 4: Fill out the amount of the loan to be raised.
Step 5: Submit the Aadhar Card number and click on “Allow” to permit Aadhar-based authentication.
Step 6: A bank representative will verify the application along with the documents that have been uploaded.
Step 7: Once approved, the loan amount will be disbursed to the bank account within 24 hours.
Factors Affecting an Aadhar Card Loan Interest Rate
The interest rate on an Aadhar card loan starts at @12.99% per year, and the repayment period of a loan is 5 years. However, the interest rate depends on factors such as monthly income, type of employment, work experience, and age:
Age:
In order to apply for a personal loan on an Aadhar card, an applicant must be between 21 and 58 years of age. The younger applicants are considered to be more creditworthy to repay the loan, and hence, lower interest rates are offered to them. On the other hand, adults may receive a higher rate of interest because of the inability to repay the funds.
Employment Status:
Applicants working in public or private sector companies or self-employed with a minimum of one year of experience are eligible to apply for a personal loan on an Aadhar card. Applicants with higher incomes and stability in the job are given more preference with lower interest rates.
Credit Score:
The higher a credit score, the more trustworthy an applicant is considered and the lower the interest rates.
Interest Rates for Aadhar Card Loan
Some of the interest charges are mentioned below:
| Fees and Charges | Amount Chargeable |
|---|---|
| Interest Rate | Starts from 1.33% per month |
| Interest on Overdue EMIs | 2% per month on the overdue EMI/Principal loan amount. |
| Loan Cancellation | No additional/hidden charges were levied.Processing fees will also be retained. |
Also read about: Factors to Consider When Choosing a Home Buying App
