Several banks offer Aadhar loans at low interest rates; Here’s how to apply
Gone are the days when customers had to wait days for their loan applications to be approved. Customers can now get a personal loan quickly with KYC and just a few important documents like Aadhaar card or PAN card.
The Aadhaar card is a vital identification document as it is required for many tasks, such as school admissions and opening bank accounts. However, few people know that the same Aadhaar card can be used to get a loan.
You can easily apply for a personal loan using your Aadhaar card. Many banks like State Bank of India, HDFC Bank and Kotak Mahindra Bank offer Aadhaar based loans to their customers.
Before considering this option, you need to know your credit score. Any customer with a credit score of at least 750 can easily apply for a loan using their Aadhaar card. In particular, in such cases, banks apply a low interest rate.
Here’s how to apply for a personal loan using your Aadhaar card
1. Go to the bank’s official website to apply for a loan using your Aadhaar card. In particular, you can apply for a personal loan via the bank’s mobile application.
2. Enter the one-time password (OTP) you received on your mobile phone.
3. Choose the option for a personal loan.
4. Enter the loan amount and other required information, as well as your date of birth and address.
5. Next, you need to upload a copy of important identity documents such as your PAN card and Aadhaar card. After the banks cross check the information you provided, they will approve your loan.
When an Aadhaar card is used as a paperless e-KYC document to obtain a personal loan, the transaction is known as an Aadhaar card loan.
Since the Aadhaar card meets your eligibility criteria for biometric verification, the overall process of getting personal loan approval becomes much easier and faster.
First published: June 18, 2022, 02:34 IST
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