How To Get A Personal Loan Using Your Aadhaar Card: A Complete Step-By-Step Guide

Aadhaar card personal loans simplify the entire process, offering quick disbursal and easy online applications through various financial institutions, including banks, NBFCs, and fintech platforms.

These loans are unsecured, meaning borrowers do not have to pledge any collateral.

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Securing a personal loan has never been easier, thanks to the widespread adoption of Aadhaar-based verification. Unlike earlier times, where numerous documents were required to apply for credit, borrowers can now access instant cash loans with minimal paperwork. Aadhaar card personal loans simplify the entire process, offering quick disbursal and easy online applications through various financial institutions, including banks, NBFCs, and fintech platforms.

Why Aadhaar Card Loans Are Gaining Popularity

Aadhaar card loans have emerged as a preferred option for borrowers seeking swift financial assistance. Since Aadhaar serves as valid proof of identity, age, and residence, it eliminates the need for additional verification documents. These loans are unsecured, meaning borrowers do not have to pledge any collateral. With online KYC verification, applications can be completed quickly through mobile apps or official websites, significantly reducing processing times.

Many lenders, such as NoBroker InstaCash and Credmudra, now offer small personal loans — like Rs 10,000 — that can be sanctioned within days if eligibility criteria are met. Meanwhile, many banks and financial entities also offer larger loans based on your Aadhaar card, such as Bajaj Finserv, Kotak Mahindra Bank, etc. Borrowers can use these funds for a variety of purposes, including emergencies, education, or travel.

Step-by-Step Application Process

To obtain a personal loan using your Aadhaar card, follow these simple steps:

• Select the lender: Choose a credible lender offering Aadhaar-based loans.
• Access the application platform: Download the lender’s app or visit their website.
• Fill out the application form: Enter personal and employment details along with your Aadhaar number.
• Complete KYC verification: Upload the necessary documents to complete the Know Your Customer (KYC) process.
• Submit the application: Review and send your application for processing.

Upon approval, most lenders disburse the loan amount directly into the applicant’s bank account within 2-3 days.

Who Is Eligible for Aadhaar Card Loans?

Lenders evaluate applicants based on several factors, which may vary slightly across institutions. Typically, eligibility includes:

• Age: 21 to 55 years, though some lenders accept applicants aged 18 to 60.
• Income: Monthly salary of Rs 12,000 to Rs 15,000, depending on the lender.
• Credit score: Ideally 700 or higher; some lenders may accept scores above 650.
• Employment: Both salaried individuals and self-employed professionals are eligible.
• Work experience: At least one year of consistent employment.

Documents You May Need

While Aadhaar serves as the primary document, some additional paperwork might be required to complete the application. These include:

PAN card
Salary slips (last 3 months)
Bank account statements (previous 3 months)
KYC documents such as voter ID, driving licence, passport, or NREGA job card
Employment ID card
Utility bills or municipal tax receipts
Piped gas bill
Pension order or accommodation allotment letter
A recent photograph or real-time image

Tips to Improve Approval Chances

For a smoother loan approval process, applicants should:

• Ensure Aadhaar is linked to their bank account to facilitate KYC verification.
• Maintain a strong credit score to improve eligibility and negotiate better interest rates.
• Prepare and submit all required documents promptly.
• Choose repayment terms that align with their financial capabilities to avoid missed payments.

Interest Rates and Charges to Consider

Before proceeding, applicants should carefully review the interest rates and additional charges applicable to their personal loan. Using a loan calculator helps estimate the EMI based on the loan amount, interest rate, and tenure, ensuring full transparency of repayment obligations.

Aadhaar-based personal loans continue to revolutionise the borrowing experience by making credit more accessible, quicker, and hassle-free for eligible applicants. However, it is still a loan and should not be treated as an asset. Timely repayments and economic utilisation of the funds will only help build your credit score and maintain your financial health.