Small Personal Loan on Aadhaar Card and PAN

A small personal loan, often referred to as an instant* cash loan, is an unsecured financial product designed to cater to immediate financial needs. Unlike secured loans that require collateral, personal loans place more emphasis on the borrower’s creditworthiness, income, and financial history. Thanks to the widespread adoption of Aadhaar and PAN cards, these essential documents now streamline the loan application process, reducing paperwork and enabling faster approvals.

Small personal loans are ideal for individuals who need quick access to funds for urgent needs, such as medical emergencies or unforeseen repairs. With flexible repayment tenures and manageable loan amounts, they provide a convenient solution without imposing excessive financial strain.

Ensure That You Have the Documents

Before you apply for a small personal loan using your Aadhaar card and PAN, it’s essential to ensure that you have the correct documentation ready. In addition to the Aadhaar card and PAN card, lenders typically require the following documents:

• Signed and completed application form
• Bank statements for the past 6 months 

For Salaried Individuals:

• Salary slips for the last 3 months
• Income Tax Returns/Form 16

For Self-Employed People:

• Business proof such as GST number
• Income Tax Returns for the past 2 years

Having all the necessary documents ready can speed up the approval process, ensuring you get the loan amount you need without unnecessary delays.

Decide the Loan Amount

When applying for an instant* personal loan using your PAN and Aadhaar card, it is crucial to carefully evaluate your financial needs before determining the loan amount. Borrow only what you can comfortably repay, considering your current income, expenses, and future goals. Assessing your repayment capacity in advance can help you avoid unnecessary financial strain and ensure timely repayments.

Check the Interest Rates and Fees

Interest rates for personal loans can vary depending on the lender, the loan amount, and your eligibility. However, if you have a strong credit score, ideally above 750, you may qualify for a loan with a lower interest rate.

It's also important to check for any additional fees that affect the overall loan cost, such as:

• Processing Fees: Most lenders charge a one-time fee for processing the loan application. This fee is usually a percentage of the loan amount.
• Prepayment Charges: Some lenders charge a fee if you choose to prepay the loan before the tenure ends.
• Late Payment Fees: If you miss a payment, lenders typically charge a late fee.

Therefore, it's essential to compare interest rates and fees from different lenders to ensure you get the best offer.

Choose the Convenient Tenure

Another crucial aspect to consider when applying for a small personal loan is the loan tenure. The loan tenure determines how long you have to repay the loan and the amount of each instalment. Typically, personal loan tenures range from 12 to 60 months, but the tenure may be shorter for small personal loans, depending on the lender's policies.

Shorter Tenure: Opting for a shorter tenure means higher monthly payments but lesser overall interest costs. This option is ideal if you can afford to make higher payments.

Longer Tenure: A longer tenure results in lower monthly payments, making them more manageable if you have a limited monthly income. However, this also means you may end up paying higher interest costs over the course of the loan.

Before finalising the loan tenure, ensure it aligns with your financial capacity to avoid missed or late payments and unnecessary strain on your budget.

Eligibility Criteria for Small Personal Loan

Each lender has specific eligibility criteria that you must meet to qualify for instant* personal loans for low amounts. Here are the general eligibility requirements:

• Age: Borrowers must be between 22 (25 if self-employed) and 65 years of age. 
• Income: Applicants from cities like Delhi and Mumbai typically need an income of INR 25,000, while applicants from other cities need INR 20,000. For self-employed applicants, the income requirement is based on the minimum annual turnover or yearly profit after taxes.
• Credit Score: A credit score of 750 and above is necessary.
• Nationality: Resident Indian citizens are eligible to apply for a personal loan.
• Work Experience: A minimum of 1 year of overall experience for salaried applicants, with at least 6 months in the current job. Self-employed applicants need to have a business that has been operating for the last 3 years.

*Please note that the above are general eligibility requirements. The final eligibility will depend on several factors including the lender policies at the time of loan application.

Conclusion

A small personal loan using Aadhaar and PAN cards offers a quick and convenient way for individuals to access funds without the need for extensive documentation. By ensuring that you have the necessary documents and carefully considering the loan amount, interest rates, and repayment tenure, you can secure a loan that suits your financial needs.

If you're seeking financial support, look no further than SMFG India Credit. You can avail of a small personal loan with attractive interest rates starting at just 13%* per annum. Apply online today or contact us for more information.