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:
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.
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.
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.
Yes, you can use your Aadhaar Card and apply for a personal loan with any bank or NBFC.
Yes, you can apply for a personal loan on Aadhaar Card online.
Yes, you can apply for a personal loan on Aadhaar Card without having a PAN card. However, in such cases, you will be required to provide a few other documents as well such as your Voter ID card, passport, driving licence, salary slips, and so on. The list of documents will be subject to the requirement of the loan provider.
It is usually a quick process as the Aadhaar card contains biometric data of the applicant. The biometrics allows a faster and simpler verification process and thus, allows quicker application process.
You will be required to fulfill the eligibility criteria for the loan application. The verification process does not take too long. If all the documents are submitted and verified on time, the loan amount is usually disbursed within 2 to 3 days.
Generally, you will not be required to apply for the personal loan along with a co-applicant.
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