A personal loan is availed to manage various sorts of unprecedented financial needs. Previously the time consumed for a unique loan process and the verification was pretty extensive. It was stressful for the borrower. Public, private, or other NBFC lenders require several documents to process a personal loan.
Since a personal loan is provided without collateral security, the documents required had to be credible, such as the verification. However, with the innovation of Aadhar cards, the number of papers demanded by banks and lenders have been reduced.
Aadhar Card – The Unique Biometric Identification System
Aadhar is a unique twelve-digit identification number. It is readily obtained by Indian citizens, non-residents and Indian passport holders. The system is based on biometric and demographic data, where the Unique Identification Authority of India (UIDAI) accepts the information. Aadhar is accredited as the world’s most innovative identification method.
Currently, it is easier to get a personal loan online with your Aadhar card, or Aadhar card loans. The loan process has become much more straightforward and hassle-free for bank officials to conclude the verification process. With Aadhar card details submitted by the borrower, the documentation process has been expedited online. It is also known as the e-KYC process. In this system of e-KYC, none of the physical documents are demanded by the banks. It has paved the path as a perfect option to save ample time. Moreover, there are a good number of banks that sanctions instant personal loans, provided you share a scanned copy of the Aadhar card along with an online loan application.
Read Also – Best Credit Card Machines And Terminals
Availability of a personal loan has become hassle-free with the advent of the Aadhar card system.
Importance of Aadhaar Card While Taking Online Personal Loan
Let us analyse the benefits of applying for a personal loan with an Aadhar card:
Aadhar card allows effortless and uncomplicated access to various types of loans and other services. The loan applicants are required to furnish the“Know your customer” or e-KYC documents along with the Aadhar card, which is authentic proof of validation of your identity and citizenship. It expedites the e-KYC that is Know your customer, which is an online verification process. It endows an authentication document for multiple things like an applicant’s age, address, proof of citizenship, photo, and identity. Most financial lenders accept this single document.
Criteria to Apply for Online Personal Loan with Aadhar Card
There are only two criterias’ to apply for a personal loan with Aadhar card which are:
- You need to be a citizen of India to be qualified for a loan. The applicant’s age must be between the age group of 21 and 58 years at the time of application.
- The applicant must be an employee of any private or public sector firm. For the self-employed category, you should have an excellent credit history confirmed again by your Aadhar card.
Procedure to Apply for a Personal Loan Online with Aadhar Card
- Visit the bank or financial lender’s website to check and compare personal loan offers online.
- Download the app or access it through the loan section of the lender’s website.
- Enter your data and contact details.
- Furnish further necessary details and required loan amount.
- You are requested to submit your scanned copy of your Aadhar Card, bank details, account number and other necessary documents online.
- Your submitted application, together with the documents, will be subjected to an authentication process.
- Once verified, you receive a one-time password (OTP) to your registered mobile number and email.
- On confirmation of OTP, your application gets accepted.
- The authorised loan amount gets transferred to your bank account.
Aadhar card, the world’s most extensive biometric system combined with digitalisation in the banking sector, has transformed the application of personal loans online. With your Aadhar card as KYC proof, this single unique document is sturdy to surpass all the hassles of the process.
Read Also – Popular Payment Processing Trends in 2021, You must know about