How to Get Personal Loan on Aadhar Card

The Indian Government launched the Aadhaar Card in 2010 to help individuals to enjoy few services in both the public and private sectors. The Aadhaar number is a distinctive 12-digit number that is provided by the government to all Indian citizens by collecting their iris scans and fingerprints.

An Aadhaar card not only acts as proof of citizenship but also helps individuals to avail loans, open bank accounts, buy SIM cards, get a Permanent Account Number (PAN) card, apply for a passport, and file their Income Tax Returns.

The main objectives of an Aadhaar card are mentioned below:
  • A single identity for every Indian citizen.
  • A single card can be used for address proof, ID proof, and age proof. Individuals will not have to carry various documents.
  • Various government services can be availed by individuals without the help of middlemen or brokers.

Impact of Aadhaar Card on Personal Loan

Individuals who wish to avail any financial services must submit their Know Your Customer (KYC) documentation. The government has made it mandatory for financial institutions and banks to collect KYC details of the customer in order to stop money laundering. Earlier, a lot of documentation was required for KYC, however, it is very simple nowadays for KYC to be completed. Banks have also started e-KYC, where the entire KYC process is digitized. Since Aadhaar contains biometric data of the individuals, verification is a simple and fast process.

Private and public sector banks do very strict validation and verification when it comes to personal loans. Initially, many documents had to be submitted by the individual to avail a loan, and the time taken for approval was also long. However, since the introduction of the Aadhaar card, lesser documents are required, and the time taken for the loan approval has reduced.

Personal loans are availed by individuals mostly for emergency purposes. Therefore, they will need the verification process to be quick and the loan amount to hit their bank account at the earliest. The main aim of an Aadhaar card is to make the process faster. KYC verification has been digitized and availing a personal loan has become very simple. Personal details of the individual are found in the Aadhaar database, therefore, the time taken to get the loan approved is less.

Method to use Aadhaar to Apply for Personal Loan Online

Even though it is not mandatory for individuals to provide their Aadhaar card, it is much easier to get a personal loan using one. The process is simpler for bank employees to complete verification if Aadhaar details are provided by the borrower. There is also a paperless mode in which documents can be submitted online known as e-KYC. In the case of e-KYC, no physical documents need to be submitted by the individual. There are various banks that also provide instant loans if the borrower uploads a scanned copy of the Aadhaar card.

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Documents that are Needed for Personal Loan

Personal loans are given to individuals based on their age and income. Salaried employees between the ages of 20 years and 60 years with a regular monthly income can avail a personal loan, while self-employed individuals between the ages of 21 years and 65 years with employment experience and regular income can also avail a personal loan.

Given below are the list of documents that are required by salaried and self-employed individuals.

1. Salaried individuals

Salaried individuals can include employees of private limited companies, chartered accountants, employees who work for the public sector including local, state, and central bodies. The documents that are required to be submitted by salaried individuals are mentioned below:

  • Last 3 months’ bank statement or 6 months bank passbook.
  • Form 16.
  • Last salary slip.
  • Address proof such as Ration card, telephone bill, electricity bill, Passport, or rental agreement must be submitted.
  • Identity proof such as Driving License, Voter ID, Passport, or Aadhaar Card must be submitted.
2. Self-employed individuals

Given below are the list of documents that must be submitted by self-employed individuals:

  • Identity proof such as PAN Card, Driving Licence, Voter ID, Aadhaar Card, or Passport.
  • Bank statement for the last six months.
  • Proof of continuation
  • PAN card of the company, individual or firm.
  • Address proof such as Voter ID, Driving Licence, Passport, or Aadhaar Card.
  • The latest income tax returns must be provided along with recent balance sheet, profit and loss statements, and computation of income which is certified by a Chartered Accountant (CA).
  • Certified copy of Partnership Deed or Sole Proprietorship Declaration.

List of Non-Banking Financial Companies (NBFCs) and Banks that use Aadhaar Card as Main Proof of Identity

Given below are some of the banks and NBFCs where the Aadhaar card is the main identity proof:

  1. HDFC Personal Loan
  2. SBI Personal Loan
  3. Bajaj Finserv Personal Loan
  4. Indiabulls Personal Loan
  5. ICICI Personal Loan
  6. PNB Personal Loan
  7. Capital First Personal Loan


It has become very easy to apply for a personal loan since the introduction of the Aadhaar card. Verification from banks and NBFCs are also done quickly since the Aadhaar database contains information such as name, permanent address, and date of birth. This, in turn, helps individuals to receive their loan amount quickly.

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