Applying for a personal loan has become easier with the use of Aadhaar card.
Aadhaar is a 12-digit identification number issued by the government, widely accepted by financial institutions for various transactions, including loan applications.
Essential Steps for Applying with Aadhaar Card
Gather Required Documents
Before starting the loan application process, ensure you have the necessary documents:
- Aadhaar Card (Original or E-Aadhaar)
- Proof of Identity (PAN Card, Passport, Voter ID, etc.)
- Address Proof (Utility Bill, Rent Agreement, etc.)
- Income Proof (Salary Slip, Bank Details, ITR, etc.)
- Passport-Size Photographs
Explore Lender Options
Research various lenders, like banks and non-banking financial companies (NBFCs), to compare interest rates, repayment terms, and eligibility criteria. Find the lender that suits your financial requirements.
Visit the Lender’s Platform
After selecting a lender, go to their official website or the nearest branch to initiate the loan application process.
Fill Out the Application Form
Complete the provided personal loan application form accurately.
Provide your personal details, employment information, desired loan amount, and tenure. Ensure the information is up-to-date and correct.
During the application, link your Aadhaar number to the loan application.
This involves Aadhaar-based e-KYC verification, a paperless method for verifying your identity and address.
Scan and upload necessary documents, including Aadhaar card, Proof of Identity, Address Proof, Proof of Income, and a passport-size photo. Make sure the documents are clear and legible.
Lenders will assess your creditworthiness based on the provided documents and information.
They consider factors like income, credit history, etc., to determine your loan eligibility and maximum amount.
Upon approval, the lender will inform you about the loan approval and the associated terms and conditions. Review the terms before accepting the offer.
Disbursement of Funds
Once accepted, the approved loan amount will be disbursed to your designated bank account.
You’ll need to repay the loan amount through Equated Monthly Installments (EMIs).
Ensure your bank account has sufficient funds to cover the EMI payments.
Applying for a personal loan using your Aadhaar card is a systematic process that simplifies the journey to accessing financial assistance.