Decoding The Impact Of Aadhar Card While Availing A Personal Loan
If you are a regular tax-paying citizen then you are already well versed with the role of Aadhar card and PAN card whenever you try to submit your income tax returns. Especially the Aadhar card has numerous use cases. For example, whenever you go to the bank in order to open a new bank account the bank will ask for your Aadhar card, the 12 digit Aadhar card is also required when you file for your income tax returns, when applying for a new PAN card and even at the time of claiming government subsidies.
With the importance of the Aadhar Card, this particular identification proof is rapidly becoming the most recognized evidence of identity and that is the reason why lots of financial institutions have started to issue a loan on Aadhar card. So let us discuss more on Aadhar card loans.
What is a loan on Aadhar card?
Initially, after receiving and verifying multiple documents the traditional banks used to issue personal loans to any individual. The list of verifiable documents included income proof as well as rental agreement (in case it is applicable) and different identity proofs such as voter identity card, driving license, etc. But with rapid development in the fintech sector, a lot of financial organizations have significantly cut down the number of documents required to avail of a personal loan for any individual.
The minimal documents requirement has become the new norm for availing of a personal loan. For example, a lot of financial institutes that offer personal loans are solely using the KYC method and also verifying the Aadhar and Pan Card. This type of loan is called a loan on Aadhar card.
You would only need your Aadhar card detail to opt for a personal loan.
Exclusive features and benefits of availing loan on Aadhar card
If someone opts for a loan on Aadhar card then he or she can gain the following benefits and features:
Easy to apply for loans
Availing loan on Aadhar card is much easier than applying for any other kind of personal loans. Since every Indian citizen has an Aadhar card there is no issue regarding the identity verification of the person.
Flexible repayment time
The time limit for repayment of a loan on Aadhar card is flexible. At most the individual can take up to 6 years in order to fully pay the loan amount.
Instant loan disbursement
One of the premium benefits of opting for the Aadhar card loan is that just by furnishing your Aadhar card details you will be able to receive the personal loan. A loan on Aadhar card does not have the lengthy paperwork that you experience while trying to opt for other loans.
Perfect in case of emergencies
In the case of emergencies, when you are in a dire need of funds, the loan on Aadhar card can come to your rescue.
For example, if you want a loan on Aadhar card you can apply for one from Navi. Navi will instantly disburse Aadhar card loans up to 20 lakhs and that too with an attractive interest rate starting at only 9.9 percent per annum. All you need to do is complete your KYC (Know Your Customer) by providing your PAN and Aadhar card details.
Impact of Aadhar card when opting for a personal loan
At the time when Aadhar card didn’t exist loan seekers had to go through lots of tiresome paperwork only to end up being disappointed by the traditional banks. Even if it was to be approved, the processing of the loan took an excessive amount of time and lots of identification papers created much confusion.
But Aadhar is such an identification document through which people can have proper clarified information on individuals and in this case each and every Indian citizen. With the help of Aadhar card, the load of paperwork while processing a personal loan has been significantly reduced and at the same time, Aadhar card has also turned into the most significant document while opting for a personal loan. Aadhar has proven to be a useful document for both the lenders and the borrowers of the personal loan.
Only a soft copy (for example, a pdf document) of Aadhar card needs to be uploaded on a website or an app for the paperless verification process. And after the verification is completed your loan amount will be instantly deposited into your bank account. This is how Aadhar card has created an impact in the lives of Indian citizens and everyone in the society can avail of a loan without any issues. Also with the launch of Aadhar cards, it has become easier for people to apply for loans from banks and other financial organizations.
Earlier the same process was completely time inefficient because borrowers had to stand in long queues with lots of documents and the approval time was very long. But as the Aadhar card works as the evidence of one’s citizenship, address, age, and identity the process has become almost hassle-free.