Launched in 2010, the Aadhaar card is issued to all citizens on the basis of their demographic (name, residential address, date of birth, gender and language) and biometric (iris scan, fingerprints) data. It is a mandatory requirement to avail some key financial services such as to apply for a PAN card, file your ITRs, get any government subsidy operating using the direct benefit transfer (DBT) mechanism including LPG, Pradhan Mantri Vaya Vandana Yojana, etc. However, there is a lot of confusion about the use of Aadhaar for availing a personal loan or if something like “Aadhaar card loan” really exists. Read on to get an insight into the same:
Meaning of Personal Loan on Aadhaar Card
A lot of people think just like you can avail a loan on your credit card, a loan on Aadhaar means that you can borrow money using your Aadhaar card. However, in reality it is not yet possible to avail a loan using just your Aadhaar card or UIDAI-issued identity card. Therefore, phrases like “Aadhaar card loan”, “loan on Aadhaar card” or “personal loan on Aadhaar card” are somewhat misleading. No such product exists as of yet, however, you can get a loan using your Aadhaar card provided you have submitted other supporting documents as required by your prospective lender.
How Can Aadhaar Card Help you Get a Personal Loan?
While Aadhaar card is not a mandatory requirement to apply for a personal loan, it can act as a valid photo identity and address proof when you apply for a loan. Since Aadhaar stores the biometric data of individuals, it helps make the verification process simpler and faster. However, you can also use other photo identity/address proof documents Voter ID card, Passport, Driving License, etc. to apply for a personal loan. As mentioned above, Aadhaar card is not the only document that you need to avail a personal loan. Other key documents like your PAN Card, bank statements, profit and loss statement (for self-employed), salary slips (for salaried), etc. also have to be provided at the time of availing a personal loan.
Benefits of Applying for a Personal Loan Using your Aadhaar Card
Some key advantages of applying for a personal loan using your Aadhaar card are:
- Since biometric data is linked to your Aadhaar card, lenders can verify your authenticity and identity much more quickly and easily.
- Aadhaar card also serves as a valid identity and address proof and can help you secure a loan with minimum paperwork. However, do remember that you need to submit valid income proof(s) along with other relevant documents as required by your prospective lender to get a personal loan.
- It also serves as a valid KYC document and helps complete the KYC formalities (in person or online/ e-KYC) which in turn helps in preventing fraud. Having an Aadhaar card can thus help increase the chances of approval of your personal loan.
Thus, Aadhaar card helps make the loan application, verification and approval process much easier and faster.
How to Apply for a Personal Loan with Paisabazaar Using your Aadhaar Card?
To apply for a personal loan online with Paisabazaar.com, you need to visit the Paisabazaar website, click on the “Personal Loan” button on the home page and follow the steps given below:
Step 1: Fill in your personal details including your occupation type, monthly income, current city, mobile number along with the required loan amount and click on “Proceed”.
Step 2: To know the best-suited personal loan offer, enter your company name, work experience, PAN and current loan EMI amount (in case any).
Step 3: Various personal loan offers that you are eligible for from different lenders will be displayed as per your chances of approval. Choose the loan offer that suits your requirements the best and fill out any additional details that may be required.
Step 4: Submit a scanned copy of your Aadhaar card and other relevant documents online.
Step 5: After this, a representative will contact you to verify your details.
Once all the required documents are received and verified and the loan is approved, the loan amount is disbursed to your bank account.
Q1. Can I avail a personal loan without an Aadhaar card?
Yes, you can avail a personal loan without an Aadhaar card as long as you submit the necessary documents as required by your prospective lender including your identity, address and income proofs, etc.
However, as your biometric data is linked to your Aadhaar card, submitting a copy of your Aadhaar card when applying for a personal loan can help make the verification process much smoother and faster and may minimize the documentation requirement.
Q2. Which banks and NBFCs accept Aadhaar Card as a valid identity and income proof?
All banks and NBFCs in the country accept the UIDAI-issued identity card as a valid identity and income proof.
Q3. Do I need to submit a collateral when I apply for a personal loan using my Aadhaar card?
No. No collateral or security is required to avail a personal loan.