How to take loan with Aadhar card?
Taking loan with Aadhar card has become a simple and convenient process in today’s time. Here are some important steps that you can follow to get a loan through Aadhar card:
Choose a bank or financial institution: First of all, you have to select a suitable bank or financial institution that offers loan through Aadhar card. You can compare their terms and interest rates by visiting different banks and digital loan platforms.
Online application process: Most banks and financial institutions provide online application process for loan with Aadhar card. You have to visit their website or mobile app and choose the option of ‘Personal Loan’ or ‘Instant Loan’.
Complete KYC with Aadhar card: Using Aadhar card, you can complete your KYC process. For this, you have to submit your Aadhar card information like Aadhar number, name, address etc. In some cases you will also have to do verification through OTP (One Time Password).
Documents Required: Along with the Aadhaar card, you will also need to submit some other documents related to your identity and income. This may include PAN card, income certificate, bank statement, etc.
Loan Approval and Fund Receipt: Once your application process is complete and all documents are verified, the bank or financial institution approves your loan. After approval, the loan amount is transferred directly to your bank account.
Loan Repayment: After loan approval, you will have to repay the loan amount in installments within the stipulated time period. The bank will deduct the amount from your account every month as EMI (equated monthly installment).
Points to Note:
Read the interest rate, charges, and terms information thoroughly before taking a loan.
Pay the loan installments on time so that there is no negative impact on your credit score.
Use only trusted and authorized platforms to avoid online fraud. Thus, you can easily get a loan using your Aadhaar card.
Important tips while taking a loan with Aadhaar card
Compare interest rates and charges: Before taking a loan, it is necessary to compare the interest rates and charges offered by different banks and financial institutions. This will let you know which bank or institution is charging the lowest interest rate and the least fee. This will reduce your EMI and you will have to pay less interest in total.
Prepayment and foreclosure options: Before taking a loan, make sure whether you have the option of prepayment or foreclosure. Many banks and financial institutions allow you to repay the entire loan before the loan tenure, allowing you to save on interest. However, in some cases, there may be additional charges for this.
Choose the loan tenure: While choosing the loan tenure, keep in mind that the longer the tenure, the higher the interest amount you will have to pay. So, choose a tenure in which you can comfortably repay the EMI, but the interest burden is also less.
Take care of credit score: Your credit score also plays an important role in getting a loan with Aadhaar card. A good credit score (750 and above) can help you get a loan at a lower interest rate. If your credit score is low, try to improve it first.
Both online and offline options: You can use both online and offline options to get a loan with Aadhaar card. You can apply through online medium like bank’s website or mobile app, while in offline mode you can also apply directly by visiting the bank branch.
Prudent borrowing: Assess your financial situation while taking a loan and ensure that you can repay it easily. Take a loan only as per your requirement and be prudent in spending it.
Use EMI calculator: Before taking a loan, use the EMI calculator to know how much EMI you will have to pay every month. This will help you in your monthly budgeting and you will be able to plan to repay the loan on time.
Conclusion:
Taking a loan with Aadhaar card is a simple and accessible process, but it should be done wisely and carefully. Read all the terms and conditions carefully, choose the appropriate amount as per your requirement, and follow the loan t