Earlier, when you had to apply for a personal loan, you had to submit a plethora of documents. But now, Aadhaar card and digitalisation have made it much simpler to apply for a personal loan. Your Aadhaar card is a single document that is KYC proof and is accepted by most banks and NBFCs as proof of identity, residence, citizenship, and birth.
To apply for a personal loan using your Aadhaar card, all you have to do is fill in an online personal loan application, and provide your Aadhaar number. If your Aadhaar card is linked to your PAN and your bank account, you don’t have to upload extra documents for the same. You just have to provide your address and income proof and give permission to the lender to carry out background checks based on your Aadhaar card. Once you clear the eligibility and verification checks, the personal loan will be approved, and the funds will be transferred to your account within a couple of days, or maybe sooner.
Note: According to a recent circular released by the RBI, Aadhaar card cannot be used as address proof for financial accounts such as loans or deposits. This is the reason why you still will need to provide a valid address proof such as electricity bill, passport, driving license, rent agreement, etc. while applying for a personal loan.
(Passport/Driving License/ Ration Card/Electricity Bill/Rent Agreement)
(Salary slips, Income Tax Returns & Bank Statementsp)
5 years and counting as India’s 1st app based Credit Line
Years of service
You can use your Aadhaar card to apply for a personal loan with any bank or NBFC. Since Aadhaar card contains biometric data, it makes the verification process faster and simpler. Thus, your personal loan, once approved, can be disbursed quicker.
Once you submit your online loan application using your Aadhaar card, your eligibility will be verified, and on the basis of it, the loan will be sanctioned.
Most lenders require the potential borrower to have a credit score of at least 750. However, some financial institutions can still approve your loan with a credit score of 600.
Yes. Since loan repayments are made in monthly instalments, Aadhaar card loan can be considered as an instalment loan.
No. Although the Aadhaar card helps in speeding up the personal loan application and verification process, it is not a mandatory document. Instead of an Aadhaar card, you can use other documents such as your passport, driving license, etc. for KYC.
Yes. If you do not have a PAN card, you can still apply for a loan on Aadhaar card. However, you may be required to provide a few other documents, such as Voter ID card, passport, driving licence, salary slips, and so on. The document list can vary depending on the loan provider.
Applying for a personal loan on Aadhaar is usually a quick process. This is because Aadhaar contains your biometric data, making the verification process, simpler and faster. If you have a good credit score and meet the eligibility criteria of the lender, you can apply for the loan online and get in disbursed within 2 to 3 days.
Generally, you do not need a co-applicant for a personal loan on Aadhaar card.