Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

How to Get a Business Loan on an Aadhaar Card?

Published on Sept 19, 2022Updated on Sept 6, 2023

How to Get a Business Loan on an Aadhaar Card?

AADHAAR is one of the most vital personal identification documents widely used in India. It is accepted for any purpose, from the opening of a bank account, applying for a passport, LPG connection, to getting a new mobile number. Your AADHAAR helps you with doing tasks without any hassles. But, do you know that your AADHAAR card can also help you get a business loan?

Confused? Let’s check the process of how to get a business loan on an AADHAAR card. 

Business Loan on AADHAAR Card

AADHAAR has become vital for making successful financial transactions in India. It has been made mandatory by the government to seed the card details into the person’s bank account number, with PAN card, and any other financial service you avail of to enable single-point verification of all financial transactions and access to service at a single point.

How Does the AADHAAR Card Help to Get a Business Loan?

Even though it has been made mandatory by the government to link PAN card details with the AADHAAR card, one must still provide documents like PAN along with Aadhaar card to get a business loan.

However, if your AADHAAR card, PAN, bank account & mobile number are all interlinked, your lender will be able to complete a big part of the verification process much faster, thereby enabling you to get closer to getting a business loan. Please note that your lender will still need your PAN card details, income tax returns, bank account details, and other required information for complete verification and approval of business loan documents.

When you have linked all the documents with your AADHAAR card, it becomes easier for the lender to verify your business loan application.

Must Read: Types of Business Loans 10 Best Options for You

Apply for Business Loan Online using the AADHAAR Card

Before applying for a business loan online, check your eligibility for the loan amount using the business loan eligibility calculator. The calculator calculates the eligibility by using various parameters like CIBIL score, bank account statement, credit utilization ratio, tax payment record, etc. With the eligibility calculator, you can quickly estimate the amount of business loan you can apply for and the possible business loan interest rate.

Eligibility Criteria for Business Loan at SMFG India Credit

The following are the eligibility criteria for an online business loan apply:

  • Self-employed professionals, sole-proprietor, private limited companies, engaged in manufacturing units, trade or services
  • The individual should be 22 years of age at the time of applying for the loan and a maximum of 65 years of age at the time of maturity
  • Must be engaged in current business for at least two years and should have five years of business experience
  • The minimum annual business turnover should be Rs 10 lakh
  • Must be a profitable enterprise for the last two years
  • Minimum annual income (ITR) should be Rs 2 lakh

Having a CIBIL score of 700 and above helps to improve the eligibility for securing a business loan quickly.

Documents Required for Business Loan at SMFG India Credit

The following are the documents required:

  • A valid identity proof like AADHAAR card and your PAN card are required
  • Last 6-months bank account statement
  • Last 2 years ITR along with the audited financial statements of the business
  • Trade license/ sales tax certificate as proof of continuation of the business
  • Other documents include sole proprietorship declaration, Memorandum & Article of Association (MOA & AOA), and Board resolution

Use of Business Loan EMI Calculator

Before applying for a business loan, use the business loan EMI calculator to select the right EMI tenure and EMI amount. Lenders prefer approving business loan applications which have a realistic loan tenure and EMI amount depending on their income and growth prospects.

To calculate the EMI amount, provide details like loan amount, rate of interest, and loan tenure. The calculator will showcase the EMI amount instantly. Using the calculator, you can check the total EMI obligation for different loan tenures.

Must Read: Business Finance - Know its Meaning

Steps to Apply for Business Loan Online at SMFG India Credit

The following are the steps to apply for business loan online:

  1. Visit SMFG India Credit website and click on Business Loan
  2. Click on apply now and enter the information requested 
  3. Upload the necessary documents along with the digital copy of AADHAAR card
  4. Based on the information provided, you will be notified instantly whether the loan application can be considered for approval or not
  5. If yes, a reference number will be generated for future reference
  6. Our SMFG India Credit care representative will connect with you over the phone and will help you go through the remaining processes
  7. Once all processes are complete, your loan application will go through different stages of verification and an offer will be made for the loan amount
  8. Post approval and signing of loan documents, the business loan amount will be disbursed to the bank account

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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.