How To Get ₹10000 Loan On Aadhaar Card
In need of a quick ₹10000 loan? Learn how to get one using just your Aadhaar card. Our guide walks you through the process step-by-step.
Small emergency loans can come in handy during a financial crisis. In fact, banks and NBFCs now offer instant loans of Rs. 10,000 to Rs. 50,000 on Aadhaar card. It is like a small personal loan that can be used to repair a home, plan a vacation or even pay monthly home rent, to pay for some unforeseen circumstances or as a bridge loan for salary.
Aadhaar card loans are mainly unsecured, meaning there is no need for collateral. The biometric information stored on the Aadhaar card is used by banks and NBFCs to verify the loan application process. Applicants also require to submit a few other secondary documents. However, it must be noted that to apply for an Aadhaar card loan, one must have a valid Aadhaar Card, PAN card, and a bank account.
In case an applicant does not have a PAN card, he may be required to provide a few other documents, such as Voter ID card, passport, driving license, salary slips, and so on. There is no fixed set of documents and the list usually varies from bank to bank.
To get a quick loan of Rs 10,000, say within 2 to 3 days from the day of application, the applicant must meet the eligibility criteria of the lender and have a good credit score. Most lenders require the potential borrower to have a credit score of at least 750 to get loans under favourable terms and conditions. Though there are some financial institutions that approve a loan application of a person with a credit score of 600. But such deals mostly have compromised terms like higher interest rates.
How To Apply For A ₹10,000 Loan On Aadhaar Card?
No matter what the loan amount is, an Aadhaar card loan can be applied both offline or online. To apply for a ₹10,000 loan on an Aadhaar card online, the customer must visit the bank’s website or download the mobile loan app. The next step is to fill in the online personal loan application, provide the Aadhaar number and other personal or professional details to complete the KYC.
If the Aadhaar card of the customer is linked to the PAN and the bank account, there is no need for uploading any extra documents. After the loan application is submitted the bank carries eligibility and verification checks. Post verification the loan amount is disbursed to the individual account.
Before applying for a loan, it is good to check the eligibility criteria to avoid any disappointment. Also, it is recommended to do a comparative analysis between banks for the best offer.
Advantages Of Applying For An Aadhaar Card LoanSome of the benefits of applying for a personal loan using Aadhaar Card are as follows:
• Aadhaar card loans have instant disbursals. Since the use of Aadhaar card eases the online verification process (e-KYC), the loan processing time becomes shorter. Ultimately it results in faster disbursal of loans.
• Aadhaar as a single document smoothens the documentation process for both consumers and financial institutions because the 12-digit UID number serves as evidence of citizenship, address, photograph, age, and identity of the applicant.
EMI Calculation On Rs 10,000 Loan on Aadhaar Card
The EMI on an Aadhaar card loan can be calculated manually using the formula –
P x R x (1+R)^N / [(1+R)^N-1].
P = Principal amount of the loan
R = Rate of interest
N = Number of monthly installments
So if Mr. X has taken ₹10,000 loan on an Aadhaar card at 10% p.a. interest rate for a tenure of 1 year, then
EMI = 10000* 0.01* (1+ 0.01)^10 / [(1+ 0.01)^12 ]-1= 879
Here, the total interest to be paid on the loan is Rs 550 and the total amount payable is Rs 10,550.
However, manual calculation of EMI can be tedious and increases the scope for errors. To beat these problems a personal loan EMI calculator can be used for quick results.
Earlier, to apply for a personal loan, one had to submit a large number of documents. But now, the UIDAI (Unique Identification Authority of India) ID on an Aadhaar card is accepted by most banks and NBFCs to offer a loan.
But it must be remembered that apart from Aadhaar card, the loan providers require a set of documents for loan processing. According to a recent circular released by the RBI, the Aadhaar card can no longer be used as an address proof. So, an individual must submit a valid address proof such as electricity bill, passport, driving license, rent agreement, etc. while applying for a personal loan.
Need funds to meet your immediate personal expenses? Then consider a loan at IIFL Finance to enjoy the benefits of easy application and disbursal of funds. For this download the IIFL Finance app and apply now. If you are worried about the EMI, choose your preferred loan amount and tenure and use the personal loan EMI calculator before applying.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.