What is a Personal Loan on Aadhaar Card
Aadhaar Card is a crucial document used for identity and address verification when you apply for a personal loan. Banks, NBFCs and digital lenders use your Aadhaar while onboarding you as a consumer to verify your identity and address. Since Aadhaar is a digital identity linked to your mobile number, it is used by financial institutions for e-KYC (electronic Know Your Customer) or digital verification, through OTP. In some cases, lenders also need a self-attested copy of your physical Aadhaar card for documentation and physical verification.
Documents Required to Submit During Aadhaar Personal Loan Application
Aadhaar Card cannot be a standalone eligibility document for loan approval. Here are the other documents required by lenders for the loan application process:
- PAN Card, Passport, Voter ID Card for identity and address proof.
- Salary slips of the last 3 months, bank statements of the last 6 months, ITRs and Form 16 for income proof for salaried applicants.
- Audited balance sheet, P&L statements, etc, for income proof for self-employed applicants.
- Employment details, such as offer letter and business details, such as certificate of incorporation for salaried and self-employed individuals, respectively.
Instant Personal Loan through Aadhaar Card
Aadhar Card allows most banks, NBFCs and fintech lenders to verify your identity and address for instant personal loan applications. For instance, IndusInd Bank (a Paisabazaar partner) offers an instant personal loan wherein no physical documents are required. The applicant needs to keep the PAN number and Aadhaar number handy to get started with the online application process. This is also useful for faster disbursal of pre-approved offers.
Aadhaar Card Loan Eligibility Criteria
| Credit Score | 750 or above preferred |
| Age | 18 to 60 years |
| Income | Minimum net monthly income: Rs 15,000 |
| Work Experience | Minimum 6 months to 1 year |
Fees & Charges for Aadhaar Card Loan
| Fees/Charges | Description |
| Processing Fee | 0.5% to 4% of the loan amount, capped by some lenders
Most lenders (such as SBI, PNB, Central Bank of India) provide a 100% waiver on processing fees to defense sector employees and pensioners. |
| Stamp Duty Charges | As per actuals |
| Duplicate NOC | Usually around Rs 300-Rs 500 |
| Prepayment or Foreclosure Charges | Usually 2% to 5% on the principal outstanding for fixed-rate loans;
NIL for floating rate loans |
| Document Retrieval charges | Usually around Rs 500 |
| Penal Charges on Late or Missed EMI Payments | Usually 2% to 3% per month on EMI overdue. Some banks (such as HDFC Bank) provide a grace period of around 3 to 7 days, during which late EMI payments may not incur charges. |
| Loan Cancellation Charges | Usually around Rs 3,000 |
| Loan Statement Charges | Up to Rs 500 per statement |
| Repayment Mode Swap Charges | Around Rs 500 per transaction |
| Documentation Charges | Around Rs 500 |
| GST | Applicable @ 18% to all processing fees and charges |
Considerations When Using Your Aadhaar Card for Applying Personal Loan
- For OTP verification, your mobile number should be linked to your Aadhaar Card.
- Use only trusted/reputable marketplaces or lenders registered with the RBI.
- Watch out for fake personal loan apps asking for Aadhaar Card and other important document uploads.
FAQs on Aadhaar Card Loan
Can I get a loan on an Aadhaar card only?
You cannot get a personal loan based on only your Aadhaar Card. Lenders may ask for income proof and other supporting documents to determine your personal loan eligibility.
How much of a personal loan can I get on my Aadhaar card?
Lenders usually provide personal loans of up to Rs 40 lakhs based on your credit score, monthly income, occupation profile, etc.
Is a co-applicant necessary for a personal loan on an Aadhaar card?
Co-applicants are usually not necessary for a personal loan on Aadhaar Card. However, it depends on the lender’s policies.
Can I get an Aadhaar Card loan online for Rs 50,000?
Your personal loan eligibility for Rs 50,000 will be evaluated once you submit your online loan application using your Aadhaar Card and if you meet the lender’s eligibility criteria.
How much credit score is required to avail loan on an Aadhaar Card?
Lenders usually prefer a credit score of 750 and above for the loan approval process.
