How to Get ₹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.

25 Apr,2023 11:09 IST 2693
How to Get ₹5000 Loan On Aadhaar Card?

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.

Zaroorat aapki. Personal Loan Humara
Apply Now

Eligibility For A Personal Loan Based On Aadhar Card

To 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

Conclusion

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.

Zaroorat aapki. Personal Loan Humara
Apply Now

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.

Most Read

Check the Difference Between 24k and 22k Gold
9 Jan,2024 09:26 IST
60408 Views
Like 7310 7310 Likes
Franking and Stamping: What’s the difference?
14 Aug,2017 03:45 IST
47253 Views
Like 8716 8716 Likes
Why Gold Is Cheaper In Kerala?
15 Feb,2024 09:35 IST
1859 Views
Like 5257 1802 Likes
Personal Loan With Low CIBIL Score
21 Jun,2022 09:38 IST
30151 Views
Like 7567 7567 Likes

Get in Touch

By clicking on Apply Now button on the page, you authorize IIFL & its representatives to inform you about various products, offers and services provided by IIFL through any mode including telephone calls, SMS, letters, whatsapp etc.You confirm that laws in relation to unsolicited communication referred in 'National Do Not Call Registry' as laid down by 'Telecom Regulatory Authority of India' will not be applicable for such information/communication.
I accept the Terms and Conditions