A Guide To Get Personal Loan Using Aadhar Card & PAN Card

Jul 23, 2020Personal Loan

A wedding, or medical expenses, a dream vacation, buying a new device/gadget or any other expenses, there are various reasons that a personal loan comes in handy to people. Sometimes these are planned expenses, often they are unplanned and sudden circumstances that require substantial funds instantly which may cast undue financial pressure. The ability to access a personal loan easily and quickly is of great help in such circumstances. 

Personal Loan on Aadhar Card

The Aadhaar card was launched as an umbrella identification system by the Indian Government in April 2010. It enables each Indian citizen to apply for and have a unique 12 digit alphanumeric code as their own. It serves as an individual proof of identity as well as the address which is accepted by all institutions all over India. Aadhaar stores each user's biometric data and serves to verify their authenticity, identity, and prevents fraud.

As another measure to prevent frauds from happening, the Indian government has been increasingly asking institutions to complete KYC formalities before entering into transactions. The Aadhaar card also serves as a valid proof to complete the KYC formalities both in person as well as for online KYC or e-KYC for proving your citizenship, identity, and address. Having an Aadhaar card increases your chances of getting an instant personal loan approved immediately.

You can apply for a personal loan by simply providing your Aadhaar card if it is linked to your bank account. All you have to do is fill in the online application, and provide your Aadhaar number. If your Aadhaar card is linked to your PAN and bank account, you don’t have to upload extra documents for the same. All you have to do is provide valid address proof, income proof, and give the lender your consent to perform background checks based on your Aadhaar card. As long as you pass the lender’s verification and eligibility checks, you will get the funds in your bank account within a day or two, sometimes even sooner.

Do note that due to a recent RBI circular, Aadhaar card can no longer be used as valid address proof for financial accounts such as deposits or loans. Thus, you will still need to provide a valid address proof while applying for a personal loan - such as utility bills/rent agreement/passport/driving license, etc.

Must Read: Complete Guide About Fullerton India Personal Loan

Personal Loan on PAN Card

The PAN which stands for Permanent Account Number is another unique 10 digits alphanumeric number assigned to every Indian. It acts as an identification number and is particularly useful and essential for conducting any sort of banking or financial transactions and for filing your income tax returns. Most banking and financial institutions need your PAN number to grant any sort of personal loan and even to conduct most other transactions exceeding certain limits.

The non-availability of either of these identification numbers creates a few hiccups and if you have neither a PAN nor an Aadhaar card you will find it increasingly cumbersome to conduct even basic transactions. It may be time to register under the government’s simple and widely available Aadhaar registration scheme.

Once you have obtained our Aadhaar card it is recommended to link it to your bank account to conduct approved financial transactions. Once you have a bank account linked to your aadhaar account and you have a PAN card, you will find it a breeze to apply for and be approved for a  personal loan. However, if you don’t have an Aadhaar card (or one that isn’t linked to your PAN/bank account), then the process of applying for a personal loan online may become wearisome, as you will have to upload multiple documents. The lender will take a longer period of time to verify the same, which will increase the overall time.

The appeal of an online personal loan application is that you can complete the process from the comfort of your home or office, where you have better comfort and space to properly do your research. It is greatly recommended to use the available personal loan calculator to know the loan amount you are eligible for (personal loan eligibility calculator) by entering your monthly income, monthly obligations, and then varying the tenure and interest rates.

Similarly, you can also estimate the EMI you may have to pay by varying interest rate and loan tenure using a personal loan EMI calculator. Using this personal loan calculator, you can check several combinations to arrive at the most economical and best option.

Thus, in conclusion, if you have your Aadhar card, and have linked it to your PAN card and bank account, it is extremely quick and easy to get a personal loan from most financial institutions.

Must Read:How much Personal Loan Can I Get?

Why Should One Take A Personal Loan?

There are several unique points about a personal loan that make it extremely helpful. 

  • It is an unsecured loan, so you do not need to pledge it against your assets. 
  • A personal loan, once approved, is transferred directly to your bank account, from where you can use the funds judiciously as per your own requirements. 
  • Personal loans come with the various flexible term and repayment options, so it's possible to find the one that will suit your repayment schedule the best. 
  • Personal loans are offered at competitive interest rates as well as easy EMI payment options.

As we see the various benefits of personal loans, we can understand why the popularity and demand for personal loans have risen exponentially in recent times. Banks and financial institutions on their part have also made the process and documentation required for obtaining a personal loan simpler and quicker. The general lag time between the need for the same has become shorter and shorter as well. The personal loan eligibility requirements are fairly basic and in keeping with the salary you draw or your income of the past 3 years, you would be approved for a commensurate sum to your income. 

Documentation Needed For Obtaining A Personal Loan:

The main documentation needed for obtaining personal loans are:

  • Proof of Identity – commonly accepted documents are Photocopy of Passport/ Drivers’ License/ PAN Card/ Voters ID/ Aadhaar Card
  • Proof of Address/Residence – commonly accepted documents are Photocopy of recent Electricity Bill/ Telephone Bill/ Property Tax Receipt/ Voter’s ID Card/ Passport
  • Income Proof – commonly accepted documents are Salary slips or Income Tax Returns & Bank Statements
  • Duly filled application forms
  • Passport-sized photos

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