How To Apply For ₹5000 Loan On Aadhaar Card?
Looking to apply for a ₹5000 loan using your Aadhaar card? Here's everything you need to know about the application process and eligibility requirements.
Anytime, and often when you least expect it, a financial need may arise leading to a person being in need of small amounts such as Rs. 5,000 on an urgent basis. These loans are often short-term, meaning that they may be paid back quickly.
With the sudden need for funds, there is also a likelihood of the borrower not having all the required documents at hand. This is where an Aadhaar Card Loan comes in as an ideal form of credit.
All Indian citizens are given a unique 12-digit number called an Aadhaar number by the government after taking their biometrics including fingerprints and iris scans.
Therefore, a loan based on Aadhar Card requires the least amount of paperwork because when applying for the loan, applicants are required to present their Aadhar Card as their primary KYC (know your customer) document. Thanks to biometric data from the Aadhar Card, the lender is able to speed up the loan approval verification procedure.
The Aadhaar Card Loan like most personal loans is an unsecured form of credit, which means that one is not required to submit any collateral to raise such loans.
As the purpose of raising such funds need not be disclosed, it can be used in difficult situations such as unexpected medical expenses or for other miscellaneous expenditures like an international trip, weddings, buying expensive gadgets, and home repairs among others.
The amount can be as small as Rs. 5,000 to meet any immediate requirement.
An online loan application can now be submitted more easily thanks to the Aadhaar Card and digitisation. With the borrower's Aadhaar data, the documentation procedure, also known as e-KYC, may be completed online. It is an excellent option for saving time because the borrower is not required to be physically present nor is there a need for any physical documents for e-KYC.
Procedure To Apply For A Personal Loan Based On Aadhar
Before applying for a personal loan, one must confirm which lenders, including banks and NBFCs, recognise the Aadhar Card as the primary form of verification.
The borrower must also find out the best deals offered by various lenders including interest rates and repayment terms. Many lenders also have a minimum amount of loan that they are willing to offer. Therefore, one must be sure that the selected lender offers sums such as Rs 5,000 on the basis of Aadhar Card.
Once the preferred lender has been chosen, the borrower is required to apply for a loan using the Aadhaar card and enter the Aadhaar number.
Then, one just needs to provide the lender with address proof and proof of income and agree to let them use the Aadhaar card to run a background check.
Eligibility For A Personal Loan Based On Aadhar CardTo secure a loan based on the Aadhar Card, certain broad criteria mentioned below should be met. However, it must be noted that the eligibility criteria may differ for different lenders.
Document:The individual must possess a unique Aadhaar card issued to them by the UIDAI
Age:The borrower must be at least 21 years old when applying for a loan and no older than 60 years old when the loan matures.
Credit Score:One must ideally have a credit score of 750 or higher to be eligible for an Aadhar Card Loan. However, some financial institutions, especially for small amounts like Rs. 5,000, can still approve the loan with a credit score of 600.
Salary and Work Experience:The minimum salary requirements and work experience required may vary depending on the lender’s internal eligibility norms, the quantum of the loan, and the city of residence
While many banks and non-banking finance companies provide loans for various purposes it is critical that one considers borrowing money from a reputed lender like IIFL Finance given that one needs to submit confidential information, especially the Aadhar Card details.
Since the Aadhar card is a reliable source of information on the borrower's personal details, including identity and proof of age, most lenders now issue loans based on it.
It is important to note, that while the Aadhaar card is a key document required to avail to raise funds from lenders for an Aadhar-based loan, one may also need to provide income proof as well to prove to the lender that he has the capacity to repay the loan. For smaller amounts like Rs. 5,000, a lender may be more lenient with its eligibility criteria.
IIFL Finance is a one-stop shop for all of the borrowers' cash requirements. Customers can receive loans more quickly and easily thanks to IIFL Finance simple, totally online approval process for personal loans starting Rs 5,000 and up to Rs 5 lakh.
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