Aadhaar Card 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.

List of Top Banks and NBFCs Using Aadhar Card as Primary Identity Proof

Most of the banks and NBFCs give personal loan considering Aadhar a primary identity proof. Some of the top banks are:

HDFC Personal Loan

The bank offers personal loan starting at an interest rate of 10.75%. HDFC offers multiple tenure options, quick processing and great customer service. Applicants are not required to pledge collateral or security to avail the loan.

Documents required:

• Proof of identity: Aadhaar Card, Driving License, Passport, etc.
• Proof of address: Voter ID Card, Aadhaar Card, Passport, or Driving License
• Other documents: Bank statements for last 3 months, form 16, latest salary slip, passport size photographs

ICICI Personal loan

ICICI Bank is one of the leading banks in the private sector. It provides hassle free application process, flexible repayment tenure and minimal documentation.

Documents required for salaried applicants:

• Proof of identity: Aadhaar Card, Driving License, Passport, etc.
• Proof of address: Voter ID Card, Aadhaar Card, Passport, or Driving License
• Salary Slips for the last 3 months
• Bank statements for the last 3 months

SBI Personal Loan

SBI offers personal loans at attractive interest rates. Repayment tenure can go up to 5 years with nominal one time processing fee.

Documents required:

• Proof of identity: PAN Card, Aadhaar Card, Driving License, Passport, etc.
• Proof of address: Voter ID Card, Aadhaar Card, Passport, or Driving License
• Income proof: Bank statements for last 3 months, form 16, latest salary slips, last 6 months account statement audited, ITR return for last 2 yrs
• Passport size photographs

PNB Personal Loan

PNB offers personal loans at lucrative interest rates and attractive repayment tenures.

Documents required:

• Proof of address: Voter ID Card, Aadhaar Card, Passport, PAN Card or Driving License
• Proof of identity: Aadhaar Card, Driving License, Passport, etc.
• Other documents: Bank statements for last 3 months, form 16, latest salary slips, last 6 months account statement audited, ITR return for last 2 yrs

FAQs on Aadhaar Card Loan