When someone takes out a personal loan, they usually don’t have to put up any protection to protect the lender. This is called “unsecured debt.” Also, the borrower doesn’t have to say why they need the loan, so the money can be used in tough situations like when unexpected medical bills come up, or it can be used for other things like a foreign vacation, a wedding, buying expensive gadgets, home repairs, and so on.
Because the borrower doesn’t have to put up any security, personal loans have become very popular as one of the best ways to get money for many reasons.
A simple application process can also get you a personal loan in just a few hours if the lender is sure that the borrower can pay back the principal and interest on time and in full based on the papers you send.
The PAN or Aadhaar card, pay stubs or proof of business income from the last six to twelve months, bank account bills, and other things could be used as proof.
But since the Aadhaar Card came out and is becoming more accepted as a single piece of proof for many purposes, lenders are now giving loans based on the borrower’s Aadhaar Card. This helps save time and makes long forms less of a pain to fill out.
Loans Based on Aadhaar Number
After taking fingerprints and iris scans, the government of India gives each Indian person a unique 12-digit number called an Aadhaar number.
When applying for a loan based on an Aadhaar card, applicants must show their card as their main “know your customer” (KYC) document. This means that the loan needs the least amount of paperwork. Because the Aadhaar Card has unique information on it, this helps the lender speed up the process of verifying the loan application.
What You Need to Do to Get a Personal Loan with Aadhaar
Before getting a personal loan, one should find out which lenders, like banks and non-banking financial companies (NBFCs), accept the Aadhaar card as proof of identity.
To get a personal loan with an Aadhaar card, all you have to do is fill out an online personal loan application and enter your Aadhaar number after choosing a lender.
The borrower only needs to give the provider their address and proof of income, and they can use the Aadhaar card to do background checks.
As soon as the lender is satisfied with the borrower’s eligibility and verification checks, the personal loan will be accepted and the money will be sent to their account.
Being able to get a personal loan with an Aadhaar card.
These general requirements must be met by someone who wants to get a personal loan based on their Aadhaar card. But different lenders may have different requirements for who can get a loan.
Required Documents
The person must have a unique Aadhaar card that was given to them by the UIDAI.
Age: The person asking for the loan must be at least 21 years old and no more than 60 years old when the loan is due.
Credit Score: To get an Aadhaar Card Personal Loan, you need to have a credit score of at least 750. Some banks will still give you a loan even if your credit score is only 600, though.
Salary and Work Experience: The lender and city where you live may have different minimum salary and work experience standards.
In conclusion
Most lenders now give loans based on the Aadhaar card because it is a reliable way for lenders to find out personal information about a borrower, like who they are and how old they are.
It is important to remember that the Aadhaar card is one of the most important things that lenders need in order to give you a personal loan. People who want to borrow money will also have to show proof of income to the lender that they can pay it back.
Personal loans are available from many banks and non-banking finance companies. However, it is important to only borrow money from a reputable lender, like IIFL Finance, because you will have to give them private information, like your Aadhaar card data.
For borrowers, IIFL Finance is a one-stop shop for all their cash needs. The easy, all-online loan approval process makes it easier and faster for people to get loans. IIFL Finance gives customers a range of easy ways to pay back their loans and offers low interest rates.
