In today’s world India is the fastest-growing country, After prime minister Narendra Modi came into power Aadhar card became popular day by day issued by the Unique Identification Authority of India (UIDAI). Nowadays, many banks and non-banking companies (NBFCs) offer personal loans by considering Aadhar cards as valid primary documents.
The loan amount with the help of an Aadhar card ranges from Rs.25,000 to Rs.40,000. The loan Repayment period varies from 6 months to 60 months. There are several factors that banks usually consider before giving a loan amount range.
Table of Contents
Why Aadhar for Loan?
Aadhar is 12 digits unique identification number for an Individual in India. Aadhar serves as identity proof for individuals in India as well as their address proof.
Banks consider Aadhar as the best suitable document because Aadhar as one single document replaces many documents from the banks’ side. Before Aadhar it was a very hectic process for both lenders and customers, but Aadhar reduced it.
The following are use cases of Aadhar
Low interest – Risk from the bank side will be significantly reduced by providing a valid Aadhar document.
Simple process
Reduced documentation
Easy Repayment options
Eligibility Criteria Loan Using Aadhar
Age should be at least 21 years
Indian Resident
Have a Valid Aadhar Card
Good Cibil Score
Documents Required
Aadhar Card
Proof of Address( ex. Electricity bill)
Income Proof(ex. salary slips or other income)
Identification proof(ex. Passport)
Aadhar Card should be linked with a mobile number
How to Apply for Loan Using Aadhar Card
There are mainly two methods to apply for an Aadhar card loan, and both required the same kind of documents, most of the banks follow both online and offline methods
Visit the bank website or visit the banks
Click on Apply for a loan
Enter Required fields including Aadhar Number
Upload properly scanned required Documents in pdf format
After applying for the loan, banks will usually take some time to verify documents and will connect with you for further assistance.
Additional Tips before applying for the Loan
The following are the some of factors that will increase the change of loan approval using an Aadahr card
Maintain a good credit score
Link Aadhar with mobile number
Compare different banks with interest rates on loan amount
Submit all kinds of documents at a time.
Check the bank’s terms and conditions
Conclusion
Use an Aadhar card as a valid document before applying for any kind of loan. This will help in various ways. Follow all the above-mentioned steps to get instant loan approval from banks using Aadhar as a valid document.
