How to Get a Personal Loan on Aadhar Card & PAN Card?

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.

Personal Loan on Aadhaar Card

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.

Must Read: Complete Guide About SMFG India Credit Personal Loan

Personal Loan on PAN Card

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.

Must Read:How Much Personal Loan Can I Get On My Salary?

Features and Benefits of an Instant Loan from Aadhaar and PAN card

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:

1. No Hidden Charges:

Borrowers can enjoy transparency in the loan process, as there are typically no hidden fees or charges.

2. Flexible Tenure:

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.

3. Affordable Interest Rates:

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.

4. Customized Loan Amounts and EMIs:

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.

Eligibility Criteria for Personal Loan with Aadhaar and Pan Card

To be eligible for a personal loan using Aadhaar and PAN card as identification documents, individuals generally need to meet the following criteria:

• Age: Applicants should typically be between 21 to 58 years old. This age bracket is considered suitable for managing personal loan repayments.
• Resident of India: Applicants must be Resident Indian to qualify for such loans. Proof of residence may be required during the application process.
• Employment Status: A stable job ensures the borrower's ability to repay the loan.
• Minimum Monthly Income: A minimum monthly income of INR 20,000 or more is mandatory. This ensures that the borrower has the financial capacity to repay the loan.
• Good Credit History: A good credit score can enhance eligibility and help secure a loan at favorable terms.

Interest Rates for Personal Loan with Aadhaar and PAN Card

Documents Required for Aadhaar & PAN Card Loan

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:

Documents Required for Salaried Applicants

1. Identity Proof: Photocopy of passport, driver's license, PAN card, voter's ID, or Aadhaar card.
2. Proof of Residence: Photocopy of a recent electricity bill, telephone bill, property tax receipt, voter's ID card, or passport.
3. Income Proof: Salary slips, income tax returns, and bank statements.
4. Duly Filled Application Forms
5. Passport-size Photographs

Documents Required for Self Employed Applicants

1. Identity Proof: Photocopy of passport, driver's license, PAN card, voter's ID, or Aadhaar card.
2. Proof of Residence: Photocopy of a recent electricity bill, telephone bill, property tax receipt, voter's ID card, or passport.
3. Income Proof: Income tax returns, bank statements, and balance sheet.
4. Duly Filled Application Forms
5. Passport-size Photographs

How to Apply for An Instant Personal Loan on PAN & Aadhaar Card

The application process for a personal loan using Aadhaar and PAN card is straightforward and efficient:

1. Choose a Personal Loan:

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.

2. Assess Your Eligibility:

Assess your eligibility based on factors such as your income, creditworthiness, and the desired loan amount.

3. Evaluate Personal Loan EMI:

Utilize the personal loan EMI calculator provided by SMFG India Credit to estimate your monthly EMI and budget your expenses effectively.

4. Upload Your Documents:

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.

Effect of Aadhaar and PAN Card on Personal Loan

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.

Things to Consider Before Applying for Aadhaar and PAN Card Loan

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:

1. Loan Purpose: Clearly define the purpose of the loan and ensure it aligns with the lender's terms and conditions.
2. Eligibility Check: Assess your eligibility based on age, income, and employment status. Make sure you meet the lender's criteria to increase your chances of approval.
3. Repayment Tenure: Choose a repayment tenure that aligns with your financial capability. Longer tenures result in lower EMIs but may incur higher interest costs over time.
4. Credit Score: Check your credit score and work on improving it if necessary. A good credit score can help you secure a loan at a better interest rate.
5. Loan EMI Calculations: Use an EMI calculator to estimate your monthly repayments. Ensure that the EMI fits comfortably within your budget.

Why Should One Take A Personal Loan?

There are several unique points about a personal loan that make it extremely helpful.

• It is an unsecured loan, so you do not need to pledge it against your assets.
• A personal loan, once approved, is transferred directly to your bank account, from where you can use the funds judiciously as per your own requirements.
• Personal loans come with various flexible terms and tenure options, so it's possible to find the one that will suit your repayment schedule the best.
• Personal loans are offered at competitive interest rates as well as easy EMI payment options.

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.

Documentation Needed For Obtaining A Personal Loan:

The main documentation needed for obtaining personal loans are:

• Proof of Identity – commonly accepted documents are Photocopy of Passport/ Drivers’ License/ PAN Card/ Voters ID/ Aadhaar Card
• Proof of Address/Residence – commonly accepted documents are Photocopy of recent Electricity Bill/ Telephone Bill/ Property Tax Receipt/ Voter’s ID Card/ Passport
• Income Proof – commonly accepted documents are Salary slips or Income Tax Returns & Bank Statements
• Duly filled application forms
• Passport-sized photos