The availability of a personal loan can make your life easy, and you can pay out your heavy expenses without any trouble. But you must fulfill various requirements and submit certain documentation while getting a personal loan. There is a wide range of document options, including passport, PAN card, Aadhar card, identity card, etc.
However, the Aadhaar card is the most famous type of identity and address proof that most of the Indian population uses. If you are going to get a personal loan but worry about the essential document you should use, then you can use an Aadhar card. This article will help you know the advantages and methods of using an Aadhar card while applying for your loan.
Benefits of Aadhar Card for Personal Loan
Getting a personal loan is an effortless job as long as you know every important point before applying. Even though a person doesn’t need to submit their Aadhar card number, it is still one of the most well-known documents that most banks and financial institutions accept for personal loan approval. It is a supporting document you must submit to the lender while getting a loan. However, here are some of the benefits of an Aadhar card that you must know before applying for a personal loan.
- An Aadhar card is a vital document that serves as valid address proof, age proof, and identity proof and can aid you in getting a loan with minimum paperwork. However, remember that you need to show valid income proof and other essential documents as required by your loan provider to obtain a loan.
- Aadhar card also serves as a valid “Know Your Client” (KYC) document and helps to complete every KYC formality, whether online or in-person, which also helps prevent fraud. Lenders who quickly verify your identity and know that you are not a fraud will increase the chance of your personal loan
- As you know, an Aadhar card is linked with your biometric data, making it more efficient for Financial Institutions to verify your identity and authenticity easily and quickly.
- It acts as a single identity proof for every citizen of India.
- With the help of the Aadhar card, you can avail of various government services without the help of brokers or middlemen.
Steps for Applying for Personal Loan Using Aadhaar Card
You can apply for a personal loan through an offline or online portal by visiting your loan provider’s branch or website. Getting a personal loan with an Aadhar card is simple and quicker for loan providers, as they can quickly verify the borrower’s details without any trouble. With a scanned copy of an Aadhar card, you can apply for a personal loan even without visiting a bank. However, after getting the benefits of the Aadhar card, here are the steps you can use to apply for a personal loan.
- Take a personal loan application form from your desired bank or financial institution, fill out your personal information, including your name, address, occupation, phone number, monthly income, etc., and mention your loan amount.
- To know the best personal loan offer, you must fill in your work experience, PAN, company name, PAN, and current loan EMI (if any).
- Pick the personal loan that suits your requirements and fill in every other piece of information that you may need.
- Submit a scan or photocopy of your Aadhaar card number and other relevant documents, allowing Aadhaar-based authentication.
- After that, wait until your loan provider contacts you to verify your information.
- Submit your income documents to complete the personal loan application process.
Once all the essential documents and paperwork are completed and verified by the loan provider, they approve the loan, and within a day, your loan amount will be disbursed into your bank account. Getting a personal loan with an Aadhar card is usually quick as it contains the applicant’s biometric data. You will quickly fulfill the eligibility criteria for the personal loan application. Moreover, you do not need to submit any security or collateral in the case of a personal loan, as your identity proof, including your Aadhar card, plays a vital role in getting your loan.
Applying for a personal loan has become so quick and effortless since the introduction of the Aadhar card. The benefits of the Aadhar Card are advantageous for both the lender and the borrower, as the lender can easily detect the borrower’s data, which helps an individual avail of their loan quickly and without any hassle. However, even if you do not have any other document, you can use your Aadhar card as a primary source to verify your identity.