An Aadhaar card not only acts as proof of citizenship but also helps individuals to avail loans, open bank accounts, buy SIM cards, get a Permanent Account Number (PAN) card, apply for a passport, and file their Income Tax Returns.The main objectives of an Aadhaar card are mentioned below:
Aadhaar Card on Personal Loan
Individuals who wish to avail any financial services must submit their Know Your Customer (KYC) documentation. The government has made it mandatory for financial institutions and banks to collect KYC details of the customer in order to stop money laundering. Earlier, a lot of documentation was required for KYC, however, it is very simple nowadays for KYC to be completed. Banks have also started e-KYC, where the entire KYC process is digitized. Since Aadhaar contains biometric data of the individuals, verification is a simple and fast process.
Fees and Charges Amount Chargeable Interest Rate Starts from 1.33% per month
Loan Processing Charges Varies from 2% to 8% of the approved loan amount. The processing fee is deducted upfront from the approved loan.
- Interest on Overdue EMIs 2% per month on the overdue EMI/Principal loan amount.
- Cheque Bounce Rs.500/- each time.
- Loan Cancellation
- No additional/hidden charges levied.
- Processing fees will also be retained.\
Personal loans are availed by individuals mostly for emergency purposes. Therefore, they will need the verification process to be quick and the loan amount to hit their bank account at the earliest. The main aim of an Aadhaar card is to make the process faster. KYC verification has been digitized and availing a personal loan has become very simple. Personal details of the individual are found in the Aadhaar database, therefore, the time taken to get the loan approved is less.
Apply for Personal Loan Online :-
Even though it is not mandatory for individuals to provide their Aadhaar card, it is much easier to get a personal loan using one. The process is simpler for bank employees to complete verification if Aadhaar details are provided by the borrower. There is also a paperless mode in which documents can be submitted online known as e-KYC. In the case of e-KYC, no physical documents need to be submitted by the individual. There are various banks that also provide instant loans if the borrower uploads a scanned copy of the Aadhaar card.
List of Non-Banking Financial Companies (NBFCs) and Banks that use Aadhaar Card as Main Proof of Identity