In terms of volume, personal loan in India has become 3.8 times in Fiscal 2021 compared to Fiscal 2017 (1). It is one of the most preferred borrowing instruments for individuals due to its easy documentation and faster credit approval procedures. Individuals can now get instant personal loan more easily by requesting the unsecured credit facility with Aadhaar card. This reduces the burden of arranging several separate documents supporting personal and residential details.
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How to apply for an instant personal loan with an Aadhaar card?
Here is a stepwise guide to apply for the instant personal loan:
Step 1: Go to the lending institution’s official website
Step 2: Find the personal loan application form
Step 3: Fill in personal, employment, income and residential details appropriately
Step 4: Enter Aadhaar card number and proceed with the Aadhaar verification process
After these steps, individuals will have to wait until a representative from the lending institution contacts them. They will inform applicants about the next procedures.
Features and benefits of instant personal loan on Aadhaar card
Individuals can leverage the following benefits by taking a personal loan on the Aadhaar card:
- Instant loan application
Intending borrowers can complete their loan application process by providing only their Aadhaar and PAN card. These documents contain necessary information regarding the applicant’s name, age, parents’ name, address, and income. So, they do not have to provide other documents.
- Quick credit disbursal
The loan application with Aadhaar card also expedites the loan verification process. With the instant personal loan application process coupled with instant documentation, individuals do not need to wait longer to get emergency credit during their financial crises. In this regard, they also need to know all the significant ways a personal loan can help them meet their financial needs.
- Flexible loan repayment period
They can choose a suitable loan repayment period within 5 years according to their repayment potential. By pre-estimating the EMI, individuals can reduce their chances of debt repayment failure. Nevertheless, the maximum tenor varies across the lending institution.
In this regard, before applying for a personal loan, individuals must determine which tenor will be apt for them, considering their fixed monthly income. They can leverage an online loan EMI calculator to measure their suitable tenor.
Eligibility criteria for an instant personal loan on Aadhaar
Individuals need to meet the following eligibility requirement to get the credit facility instantly with their Aadhaar card:
- Applicants must be Indian.
- They need to be salaried individuals from reputed private/public companies or MNCs.
- Their minimum age has to be 21 years, and repayment must end before they become 67 years old.
- Having a minimum CIBIL score of 750 is necessary.
- They must have a minimum salary of Rs.25,000 per month.
Note: These eligibility criteria are indicative and can be different for a lending institution. Individuals can visit the official website of a lender to know their eligibility parameters. Apart from these eligibility factors, individuals also need to be cautious of reasons for personal loan rejection and how they can avoid such circumstances.
Individuals also need to know the things they must consider during the loan application process to get credit at a lower interest rate.
Ways to obtain the lowest interest rate on personal loan
Here are the strategies to get a minimal interest rate on a personal loan:
- Compare lending institutions
The interest rate is not the same across all lenders. By comparing loan offers, borrowers can identify a lending institution that offers personal loans at a lower interest rate.
In this regard, individuals also need to keep in mind that all the major personal loan charges also increase the loan burden. So, while comparing lending institutions, they should carefully examine these charges as well.
- Meet the eligibility criteria
Eligibility criteria help lending institutions recognise applicants who are creditworthy. They ensure that applicants meet all the eligibility parameters, including credit score, income, age, etc. Lending institutions get confidence that such individuals can repay debts without failure. Therefore, there is a significant chance that they will keep applicants’ requests to reduce the interest rate after a successful negotiation.
- Opt for a personal loan balance transfer
Borrowers can move their existing loan balance to lending institutions that offer lower personal loan rates. However, there are several charges involved in this facility, such as processing fees, stamp duty, etc. Borrowers must therefore analyse how much borrowing cost they will save after changing the lending institution.
Furthermore, various lending institutions provide pre-approved loan offers to their customers on financial products, including personal loans, business loans and credit cards. Being a readily available loan, customers can quicken their loan application process. They can check their pre-approved offers only by mentioning their names and contact details.
In conclusion,an instant personal loan with the Aadhaar card reduces the hassle of the documentation process to a large extent. They do not need to submit various records to verify address, personal details, etc. This way, they can easily meet their emergency credit shortages.