Aadhar Loan
What is an Aadhaar Card Loan?
An Aadhaar card loan is a type of unsecured financing option provided by the banks to its customers. It requires minimum documentation as compared to traditional bank loans. Aadhaar card is a paperless e-KYC document that fulfills your eligibility criteria for biometric verification. It can be used for your ID proof and address proof. You just need to submit your financial documents such as salary statements, PAN Card, bank statements for approval of your personal loan.
Impact of Aadhaar Card on Personal Loan
A personal loan can be used to meet any unfortunate circumstances such as – medical expenses, renovation of a house, child’s education or marriage expenditures, etc. If you are planning to apply for a personal loan, it’s compulsory to submit your Know Your Customer (KYC) documents. The government has made it mandatory for banks and financial institutions to collect KYC details from the applicants in order to prevent money laundering. Banks have started e-KYC which has made the process much easy and simple. Since Aadhaar contains biometric data of the individuals, verification process has become fast.
Earlier, both private and public sector banks demanded several documents from the applicants in order to approve personal loan application. Hence, the time taken for approval was also long. However, ever since the Aadhaar cards have been introduced, lesser documents are required, and the time taken for the loan approval has reduced.
Personal loans are generally taken for emergency purposes such as medical expenses or for funding education, and Aadhaar makes the process quick. Personal details of the individual are found in the Aadhaar database; therefore, the time taken to get the loan approved is less.
Method to use Aadhaar to Apply for Personal Loan Online
The online process has made it easier and simpler to apply for a personal loan. There are several fintech lenders that allow you to apply for the loan in just a few simple steps. With the help of such platforms, you can analyze and compare various personal loan deals offered by top banks and NBFCs in India. They work closely with their partner banks to get the best loan offers, attractive discounts and lower interest rates for you. During the online process, no physical documents need to be submitted by the applicants. All you need to do is just upload a scanned copy of your Aadhaar Card.
Visit bank’s or financial aggregator’s website to check and compare loan offers.
Apply for personal loan on the website. Enter your personal details and loan requirements.
Post this, a representative will contact you to verify your details.
Submit your scanned Aadhaar Card and other documents online.
After verification of documents, the sanctioned amount will be credited to your bank account.