Get a fast personal loan with just your Aadhaar card
If you need funds in an emergency, a personal loan can come to the rescue. However, banks do require you to complete the Know Your Customer (KYC) verification before giving you a loan.
The usual KYC verification method, even when done online, can be time consuming. But by using your Aadhaar card, the process of getting an unsecured (personal) loan from your bank can be simpler as the Aadhaar card serves as a single document that fulfills all KYC requirements. It serves as proof of birth, domicile and identity.
An Aadhaar card stores all relevant information and can also be used to verify your biometric ID. This data is collected by the Unique Identification Authority of India (UIDAI).
“The time for verifying and processing applicant documents has been drastically reduced since lenders accept the Aadhaar card as proof,” says Arijit Sen, Sebi-registered investment advisor and co-founder of Kolkata-based company Merrymind.in. . financial consulting firm.
Since KYC can now be done electronically, there is no need to submit physical copies of documents. Many banks will approve a personal loan after downloading a scanned copy of your Aadhaar card.
However, some banks may also ask you for your PAN card. If you do not have a PAN card, additional documents may be required. In addition, the credit rating plays a role in all loans, and especially in quick personal loans. If you have a credit score of 700 or higher, your loan is more likely to be approved.
The online process
You can go to the lender’s website or app and find out what loan amount you are entitled to. It is recommended to compare several offers before making a decision. Once you have completed the required fields and applied for the loan, you will receive a call from a representative. You will then be asked to upload your Aadhaar and other relevant documents if necessary. Once the documents are verified, your loan will be approved.
“Since the Aadhaar card is tied to most of our essential documents such as PAN, cell phone number and bank accounts, there is always a possibility that Aadhaar details could lead to identity theft. To solve the problem, the government created virtual identifiers to ensure user privacy and ensure data protection, ”Sen said.
The user can generate the virtual ID (a 12-digit number) through the UIDAI website, which can trace the person’s original Aadhaar number. You can generate the virtual ID as many times as you want. Once you have generated a new ID, the previous one will become invalid. “You can use this feature of virtual identifiers to mitigate the risk of data theft,” Sen adds.
While the process of getting a personal loan with an Aadhaar card is easy and secure, it doesn’t mean that other factors like interest rates change. Remember that personal loans come with high interest rates and should be the last resort. Avoid taking out a personal loan to make impulse purchases or to pay off existing debt.