Published on Jul 21, 2020Updated on Nov 8, 2023
A wedding, or medical expenses, a dream vacation, buying a new device/gadget or any other expenses, there are various reasons that a personal loan comes in handy to people. Sometimes these are planned expenses, often they are unplanned and sudden circumstances that require substantial funds instantly which may cast undue financial pressure. The ability to access a personal loan easily and quickly is of great help in such circumstances.
The Aadhaar card was launched as an umbrella identification system by the Indian Government in April 2010. It enables each Indian citizen to apply for and have a unique 12 digit alphanumeric code as their own. It serves as an individual proof of identity as well as the address which is accepted by all institutions all over India. Aadhaar stores each user's biometric data and serves to verify their authenticity, identity, and prevents fraud.
As another measure to prevent frauds from happening, the Indian government has been increasingly asking institutions to complete KYC formalities before entering into transactions. The Aadhaar card also serves as a valid proof to complete the KYC formalities both in person as well as for online KYC or e-KYC for proving your citizenship, identity, and address. Having an Aadhaar card increases your chances of getting an instant personal loan approved immediately.
You can apply for a personal loan by simply providing your Aadhaar card if it is linked to your bank account. All you have to do is fill in the online application, and provide your Aadhaar number. All you have to do is provide valid address proof, income proof, and give the lender your consent to perform background checks based on your Aadhaar card. As long as you pass the lender’s verification and eligibility checks, you will get the funds in your bank account shortly after loan approval.
Do note that due to a recent RBI circular, Aadhaar card can no longer be used as valid address proof for financial accounts such as deposits or loans. Thus, you will still need to provide a valid address proof while applying for a personal loan - such as utility bills/rent agreement/passport/driving license, etc.
The PAN which stands for Permanent Account Number is another unique 10 digits alphanumeric number assigned to every Indian. It acts as an identification number and is particularly useful and essential for conducting any sort of banking or financial transactions and for filing your income tax returns. Most banking and financial institutions need your PAN number to grant any sort of personal loan and even to conduct most other transactions exceeding certain limits.
The non-availability of either of these identification numbers creates a few hiccups and if you have neither a PAN nor an Aadhaar card you will find it increasingly cumbersome to conduct even basic transactions. It may be time to register under the government’s simple and widely available Aadhaar registration scheme.
Once you have obtained our Aadhaar card it is recommended to link it to your bank account to conduct approved financial transactions. Once you have a bank account linked to your aadhaar account and you have a PAN card, you will find it a breeze to apply for and be approved for a personal loan. However, if you don’t have an Aadhaar card (or one that isn’t linked to your PAN/bank account), then the process of applying for a personal loan online may become wearisome, as you will have to upload multiple documents. The lender will take a longer period of time to verify the same, which will increase the overall time.
The appeal of an online personal loan application is that you can complete the process from the comfort of your home or office, where you have better comfort and space to properly do your research. It is greatly recommended to use the available personal loan calculator to know the loan amount you are eligible for (personal loan eligibility calculator) by entering your monthly income, monthly obligations, and then varying the tenure and interest rates.
Similarly, you can also estimate the EMI you may have to pay by varying interest rate and loan tenure using a personal loan EMI calculator. Using this personal loan calculator, you can check several combinations to arrive at the most economical and best option.
Thus, in conclusion, if you have your Aadhaar card, and have linked it to your PAN card and bank account, it is extremely quick and easy to get a personal loan from most financial institutions.
Instant loans offered with Aadhaar and PAN card verification have become popular due to their ease and convenience. These loans come with several features and benefits:
Borrowers can enjoy transparency in the loan process, as there are typically no hidden fees or charges.
Borrowers can choose a repayment tenure that suits their financial situation, typically ranging from 1 to 5 years, allowing for comfortable repayment without straining finances.
Interest rates are often competitive and can be based on the individual's credit score. Those with a good credit history may benefit from affordable interest rates, making the loan more affordable.
Borrowers can often select the loan amount that meets their specific needs. Additionally, the equated monthly installments (EMIs) can be tailored to fit their budget, making repayments manageable.
To be eligible for a personal loan using Aadhaar and PAN card as identification documents, individuals generally need to meet the following criteria:
|Fees And Charges||Amount Chargeable|
|Interest Rate||Starts from 11.99%* per annum.|
|Loan Processing Charges||Varies from 2% to 8% of the 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||INR 500/- each time.|
Such loans utilize your Aadhaar and PAN cards for quick verification, simplifying the application process. When applying for a loan using Aadhaar and PAN card, you'll need to provide specific documents depending on your employment status:
The application process for a personal loan using Aadhaar and PAN card is straightforward and efficient:
Begin by selecting a personal loan that suits your financial needs from a reputable financial institution such as SMFG India Credit to get favorable terms.
Assess your eligibility based on factors such as your income, creditworthiness, and the desired loan amount.
Utilize the personal loan EMI calculator provided by SMFG India Credit to estimate your monthly EMI and budget your expenses effectively.
Since Aadhaar and PAN card-based loans require minimal documentation, submit these documents promptly once you meet the eligibility criteria. The sooner you provide these documents to your lender, the faster your loan approval process will be, enabling you to access the funds you need instantly.
The introduction of the Aadhaar card in April 2010 has revolutionized the personal loan landscape in India. It has significantly streamlined the loan approval process and eliminated the need for lengthy queues and extensive paperwork. The Aadhaar card, along with the PAN card, plays a pivotal role in expediting and simplifying the personal loan application process.
Both the Aadhaar card and PAN card are essential for personal loan applicants. The Aadhaar card streamlines the identification and verification process, making it quicker and more efficient. Meanwhile, the PAN card ensures that lenders have access to the borrower's financial history, contributing to responsible lending practices. They have made the application process more accessible, efficient, and secure for borrowers while enabling lenders to make informed lending decisions. As a result, these documents have become indispensable tools in the world of personal finance in India.
Before applying for a loan using your Aadhaar and PAN card, it's crucial to consider several key factors to ensure a smooth and successful application process:
There are several unique points about a personal loan that make it extremely helpful.
As we see the various benefits of personal loans, we can understand why the popularity and demand for personal loans have risen exponentially in recent times. Financial institutions on their part have also made the process and documentation required for obtaining a personal loan simpler and quicker. The personal loan eligibility requirements are fairly basic and in keeping with the salary you draw or your income of the past 3 years, you would be approved for a commensurate sum to your income.
The main documentation needed for obtaining personal loans are:
You can get a loan of up to INR 25 lakhs* with an Aadhaar card & PAN Card along with other important valid proofs.
To get a small cash loan on your Aadhaar and PAN card:
To get a Rs. 10,000 personal loan with Aadhaar and PAN card:
To get a Rs. 50,000 personal loan with Aadhaar and PAN card:
PAN card is mandatory to access any financial products including personal loans, and if you don't have it, you need to apply for one to get easier access to finance and a range of other financial products.
You cannot check a CIBIL score by Aadhaar card alone to gauge your current loan eligibility. You will need a PAN card for the purpose.
To link Aadhaar and PAN cards for a personal loan, provide both documents to your lender during the application process.
For SMFG India Credit, physical photocopies of Aadhaar and PAN cards are required; e-verified copies are not accepted.
SMFG India Credit typically processes Aadhaar and PAN card-based personal loan applications shortly after loan approval that typically takes 72 hours*.
*Terms and conditions apply
**Subject to foreclosure charges. Terms and conditions applicable.
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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.