How to get a ₹10,000 loan using your Aadhaar card – A complete guide | Mint

Personal loans are a great choice if you are looking for instant cash to help you cover your immediate financial needs. With flexible repayment options and quick loan disbursement, these loans have become a popular choice for people. These loans are unsecured, hence, you can easily apply even if you do not have assets to provide as collateral. If you are in need of ₹10,000 and want to borrow a loan, you can easily get the loan on your Aadhaar card. Let us understand how

Understanding loans on Aadhaar card

Loans on Aadhaar card are personal loans where Aadhaar card is used as the primary document for verification. It saves the time you spend on paperwork as you no longer need to fill out extensive papers to apply for the loan. Small loans are offered by many lenders such as banks, NBFCs and fintech platforms offering simple eligibility criteria and minimal documentation.

Key benefits of loans on Aadhaar card

Quick processing: The process of KYC becomes much faster with Aadhaar card. This way the loan gets approved quicker and you can access funds in no time.

Minimal documentation: Aadhaar card based loans are not the same as normal loans as you are not required to submit documents such as Income proof, Address proof, Identity proof. Aadhaar card works as a single document to prove your identity and address, thereby eliminating the need for paperwork.

Accessibility: You can avail a loan on Aadhaar card if you are salaried, self employed or even if you have a limited credit history. This way everyone can take advantage of these loans.

Convenience: You can apply for this loan online. Hence, you can save your precious time and get access to funds quickly.

Eligibility criteria for ₹10,000 loan on Aadhaar card

Although every lender has different eligibility criteria, there is a general criteria which almost all lenders require in order to evaluate your application;

Age: You must be between 21 to 60 years old, which most lenders require.

Income: You need a stable source of income. You can apply for the loan if you are a salaried employee or self employed. Usually for a ₹10,000 loan, some lenders require a minimal salary of ₹15,000.

Bank account: You are required to have an active bank account in which the loan amount will be deposited.

Credit history: A good credit history improves your chances of getting approved for the loan even though some lenders may offer this loan with a low credit score.

How to apply for a ₹10,000 loan on Aadhaar card

Choose the right lender: Explore the interest rate, fees, and repayment options offered by lenders and compare before choosing a deal.

Check eligibility: Check for the eligibility criteria of the loan so that you can streamline your possible options.

Gather required documents: Although your Aadhaar card is the primary document in such loans You may also be asked for additional documents such as your PAN card and income proof (salary slips, income tax returns etc.).

Apply for the loan: Go to the lender’s app or website, fill in the form and upload documents. Alternatively, you can also visit a branch and submit the application along with the documents for your loan application.

Complete KYC verification: You will be required to complete an Aadhaar card based e-verification. Hence, make sure that your Aadhaar is linked to your mobile for OTP verification.

Approval and disbursement: Once approved, the loan amount gets transferred to your bank account instantly.

Things to consider before applying for the loan

Credit score: If you pay your loan on time it can help you improve your credit score gradually. However, if you miss even a single repayment, your credit score will be drastically impacted. Therefore, borrow wisely only when you really need the loan.

Interest rates: It is advisable that you should compare interest rates among various lenders before selecting one. This way you can get the best deal which may fit your budget.

Processing fees and other charges: You must ensure that you are thorough with the charges and fees which the lender may charge while you repay the loan. Hence, to avoid any last minute inconvenience, you must contact the lender for any hidden charges or additional fees which you will be bound to pay.

In conclusion, a ₹10,000 loan on Aadhaar card is a convenient way to meet your sudden financial obligations. However, you must note that personal loans attract higher interest rates as compared to other loans in the market. Hence, to avoid any unnecessary burdens, you must plan your repayment journey properly and make sure that you stay ahead of your EMI repayments. This way you can also improve your credit score gradually which will help you get lower interest rates on future borrowings.

(Note: Using a credit card carries its own set of risks)