How can you get a small cash loan using Aadhaar card? A step-by-step guide | Mint

Life is full of surprises, and sometimes you may need cash immediately because of unforeseen costs such as home repairs, medical emergencies, or a possibility. That may come unexpected, so in such cases small cash loans, if guaranteed by an Aadhaar card, would be the only trustworthy financial lifeline. Let’s examine the details of these loans and the application process.

What are small cash loans?

Small personal loans are also known as small cash loans. They are short-term loans used to pay for urgent necessities. These are made available by banks, non-banking finance companies, as well as online lenders and processed fast compared to the large loans.

They are favourite due to:

• High approval rates: Not much waiting time.
• Flexible payback terms: Choose a payback period that fits your needs.
• Application: The procedure is simple and requires less paperwork.

What is an Aadhaar card loan?

One type of personal loan that the Indian people might take is the Aadhaar card loan. The applicant does not need any proper collateral or paperwork. The loan amount is computed on the basis of your salary, credit score, and other such factors.

Eligibility criteria for small cash loan on Aadhaar card

The following is the eligibility criterion for a low amount cash advance using your Aadhaar card.

• Age: Between 21 to 60 years.
• Citizen: Should be an Indian citizen.
• Income: ₹30,000 per month.
• Work experience: One-year experience in a job.
• Credit score: than 700 is ideal.

How to apply for a small cash loan on an Aadhaar card?

1. Online application: Go to the lender’s website and enter your information and loan amount in the application form.
2. Aadhaar verification: The lender verifies Aadhaar by using the facility of e-KYC, which uses Aadhaar for knowing the customer.
3. Other documents: Sometimes, you have to attach proof of address, proof of income and bank statements while applying.
4. Loan approval: After considering the application, a lender approves the loan and indicates his terms of the loan repayment plus the interest rates.
5. Fund transfer: The loan amount is credited directly to your bank account after you accept the terms.

Points to remember

As they are at relatively higher interest rates, one should borrow in a responsible way and avoid being trapped in debts. Be certain that you can pay off the loan before the deadline by scrutinizing the terms.

In conclusion, small cash loans based on Aadhaar cards have made borrowing fast and hassle-free for many Indians. However, the secret to maximising this financial weapon is prudent borrowing. To prevent unnecessary financial hardship, always consider the advantages and disadvantages before applying.

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