“Personal Loan” refers to a personal loan as an unsecured loan. Your score on credit, earnings, and other criteria primarily grants it. Nowadays, many banks and NBFCs provide instant personal loans via their websites or mobile apps.
With the advent of Aadhaar-based e-KYC being accepted by banks and NBFCs, borrowers can apply for and receive loans instantly. Aadhaar KYC is being recognized and accepted by a majority of banks and NBFCs to facilitate the process of obtaining a loan. It allows people to utilize their Aadhaar number as a single form of identification proof, proof of address, and proof of age, making obtaining documentation easier for personal loans.
How Do I Use My Aadhaar Card To Apply For A Personal Loan?
Personal loans can now be accessible online. This is a step-by-step tutorial on how you can apply for personal loans by using the Aadhaar card:
Go to the bank’s site or mobile application to search for personal loans.
Usually, banks offer several personal loan options. Select the one that meets your needs, then click ‘ Apply Now.’
The first step is typically to provide your personal information, such as name, contact information, age, and income details.
The next step generally requires you to input your PAN details and your Aadhaar number. Enter your Aadhaar number here.
You may be required to agree with the requirement that the banker extract details of the UIDAI database. UIDAI database to verify the validity of your KYC. When you choose “ACCEPT condition, your application will be processed.
The screen now displays the accepted loan amount and the interest rate, repayment duration, and each month’s installment.
You can agree to the conditions listed here and proceed with the loan process. You can also ask for a callback from an executive at the bank to discuss further steps.
Whatever way you choose, your loan application is nearly complete, and it is now for you to agree with the terms of the loan and then wait for the loan amount to be transferred into your account.
It is easy to obtain personal loans using your Aadhaar card.
- Personal loans, also known as secured loans, require lots of documentation for identity proof, such as address proof, age proof, and proof. When you choose to use Aadhaar-based KYC, you won’t need to present separate documents to prove this.
- Reduces the time to process loans by a few days. Usually, hard copies of documents must be provided by the person applying for the loan, and an in-person verification is required to confirm the authenticity of the information. It typically takes several days, resulting in delays in the processing of loans. With Aadhaar and KYC, this process can be removed, and the loan is paid out much sooner. This will put the needed loan amount in your bank account more shortly.
Does My Aadhaar Card Have Any Effect On My Personal Loan Eligibility?
Aadhaar cards are not able to be used for loans. An Aadhaar card is only an identification document for processing the loan request. It has no connection with the eligibility of your loan. It can aid in establishing your age and identity. However, it does not increase or decrease your chances of obtaining the personal loan you need.
Here are some of the most basic requirements for an individual loan:
Personal Loan Snapshot
Minimum and Maximum Age
- The minimum age of 21 is 21, and the maximum period is 65.
- Some banks require an age of 23 for the period minimum.
Loan Amount
- The amount of the loan can be up to 50 lakhs. 50 Lakhs.
- The eligibility criteria are based on your monthly net income.
- The loan amount is usually set at 10-27 times your monthly net income.
- Many banks make sure to provide the maximum amount of loan that is at most Rs. 25 Lakhs.
Net Monthly Income
- The minimum required income is at least Rs. Ten thousand for semi-urban and rural areas, and Rs. 15,000 for metro cities.
- Notice: The income criteria may differ between banks, and certain banks might require a higher minimum income for personal loans.
- Salaried individuals must prove their income to have a steady income.
Employment Type
- The salaried and self-employed can apply for this loan.
- People who earn a salary working for prominent companies are usually at an advantage due to their security in employment and steady income.
- A few self-employed professionals, such as doctors and chartered accountants, can receive a loan with a more significant amount because of their high earnings.
Existing debts and obligations
- The more obligations and debts are on your account, the lower the chances of getting a loan.
- Your current EMIs can lower the lender’s confidence in your capability to repay the loan. This, in the end, could result in loan rejections.
Minimum Work Experience
- The salaried employees must be working for at least two years, of which the company must have employed them for the past year.
- If you are a self-employed entrepreneur, your company must have been in operation for at least three years. Out of which they must be earning profits over the past two years.
Credit Score for Personal Loan
- An average credit score of at least 650 points or higher is needed.
- Credit scores of 775 are excellent.
Personal loans are easy to get and require no security or collateral. The loan amount is the maximum of Rs.50 lakhs for a personal loan, depending on their financial situation and credit scores. It is important to note that your Aadhaar card number is used as a document of verification, which allows quick internet-based KYC confirmation and loan acceptance procedures. Many banks and NBFCs demand that you have an Aadhaar card being a necessary document for any loan. Therefore, whether it’s an offline or online application, you’ll need your Aadhaar number to speed up loan processing.
