Aadhaar Card Loan: Secure ₹5,000 in minutes with minimal hassle – Here’s how | Mint

If you want to get instant cash to cover your immediate financial needs then personal loans are a great choice. These loans have become popular as they have flexible repayment options with quick loan disbursement. These loans can be availed with minimal documentation and without collateral. If you are in need of ₹5,000 and looking to borrow a loan, then you can get the loan on an Aadhaar card very easily. Let us understand how

Key Features of ₹5,000 loan on Aadhaar card

Minimal documentation: Aadhaar Card makes the loan application quick and easy as this document is used as proof of identity and address. However, some lenders may also require you to submit your PAN Card and basic income proof.

Instant disbursal: These loans require Aadhaar card based e-KYC. This way loan processing and approval take place quickly. Due to this, you can get access to funds quickly.

Small loan amounts: While regular personal loans offered by lenders come with a minimum amount, loans on Aadhaar card are a great way to borrow money for short term financial needs like a small loan of ₹5,000.

Flexible eligibility: You can apply for such loans if you are a salaried employee or a self employed professional. Such low value loans often have relaxed credit score requirements.

Steps to apply for ₹5,000 loan on Aadhaar card

Find a suitable lender: Many lenders in the market offer small loans on an Aadhaar card. Hence, explore and then choose a lender which offers you the best interest rates, processing fees, repayment terms, and eligibility criteria.

Check eligibility: Ensure you meet the lender’s basic requirements, which typically include:

• Age limit: Depending on the lender, 21 to 60 years.
• Income: usually lenders require a minimum income of 15,000. However, this may vary depending on the lender’s requirements.

Prepare required documents: While Aadhaar Card serves as the primary document, you may also need to submit:

• Financial verification via PAN Card
• Bank statements, or income proof (if required)

Note: Make sure that all the documents are valid and up to date to avoid any issues during the application process.

Apply for the loan:

• Visit the lender’s website or use the mobile application.
• Fill out the loan application form and provide necessary details.
• Upload required documents.

Complete KYC verification: Loans on Aadhaar card offer an Aadhaar based e-KYC. You will be receiving an OTP on the registered mobile number linked with your Aadhaar card for completing the e-KYC. This simple verification process saves you considerable time.

Loan approval and disbursement: Once your application is reviewed, and approved, the loan amount will be credited directly into your bank account. Approval times range and are usually quicker for these loans.

Factors to consider before applying for ₹5000 loan on Aadhaar card

Interest rates and fees: Loans on Aadhaar cards generally have lower interest rates than general personal loans. Hence, before you apply for the loan, check for the interest rates, processing charges as well as any hidden charges and compare with other lenders so that you can get the best deal which suits your budget.

Credit score impact: On time repayment of the loan can help you improve your credit score and will improve your eligibility chances for loans in future. However, missed repayments can damage your creditworthiness and lower your credit score.

Beware of fraudulent lenders: Do not share personal details to any lender until you verify its authenticity. Only deal with known banks and NBFC to ensure that you do not fall for any frauds.

In conclusion, loans on Aadhaar card are a quick and easy way to fulfil your financial needs. Additionally, it is also a great opportunity for you to improve your credit score gradually while making timely payments. However, you must note that before you apply for any loan, evaluate your needs and make sure that you are capable of repaying the loan on time. With this you can make wise financial decisions without taking additional burdens.

(Note: Raising a loan comes with its own risks. So, due caution is advised)