Personal Loan

Aadhaar Card Loan: How To Apply for Personal Loan On Aadhaar


It’s no secret that one can face a financial crunch at any point in their life. If you are facing challenges in making ends meet, a personal loan comes in pretty handy in such circumstances. 

A personal loan can cover almost all your financial shortages. It is an unsecured loan. As a result, it has a fairly long verification process before you get approval. Also, lenders require multiple documents for verification procedures.

So, it becomes a very hectic and time-taking process. In the end, your application could even get cancelled if the criteria are not met.  

But wait, don’t worry! There’s an easier way out. Nowadays, the process has become quite straightforward.

Now all you need is just one document. Yes, we’re talking about the loan on Aadhaar card only facility.

With just your Aadhaar details, the documentation can be done online by e-KYC. In case you need to know, KYC is how a bank or lender will verify your identification.

Since no physical documents are needed, it saves time. In some banks, you can even get instant approvals if you submit a scanned copy of your Aadhaar card. 

Eligibility criteria for getting a personal loan with an Aadhaar card

Yes, you have certain criteria to fulfil first. But these are somewhat basic. So, let’s have a look at the personal loan on Aadhaar card only eligibility criteria, shall we?


You must be at least 21 years old when applying for a personal loan. However, you should not be older than 60 years (60 years for self-employed) when the loan matures.

Credit score

You must have a credit score of 750 or above to be eligible for an Aadhaar card loan


A minimum of Rs. 25,000 in net monthly income is necessary to apply for an Aadhaar card loan but this varies from one bank to another.

Also, you must have a minimum of 2 years of combined work experience, including at least 1 year in the present organisation. 

Years in existing residence

You must be residing in your current home location for at least 12 months.

Documents needed for Aadhaar card loan 

Here’s a list of the documents you will need to apply for a personal loan using an Aadhaar card:

  • Passport-size photos.
  • Additional KYC papers, such as a passport, PAN card, driver’s license, and voter ID.
  • Bank statement for the past 3 months. 

How to apply for a personal loan using an Aadhaar card?

Digitisation and the introduction of the Aadhaar card have made it simpler to submit an online personal loan application. Your Aadhaar Card is the sole document you need to present as verification of your KYC. 

Most banks and non-banking financial Institutions now accept it as identity, birth, residence, and citizenship proof. Follow the step-by-step guide below to apply for a personal loan using an Aadhaar card: 

Step 1

First, you need to check and compare personal loan offers online by going to a bank or financial aggregator website. 

Step 2 

Then, you need to enter a few basic information and the needed loan amount. 

Step 3

Next, you need to submit scanned copies of your ID cards and other documents online. 

Step 4

Your application and the necessary documents will be up for verification. 

Step 5

Finally, when approved, the loan amount sanctioned will be credited to your bank account.  

Why choose the Aadhaar card personal loan option

The perks of getting a loan on an Aadhaar card are quite a few:

Loan amount 

You can avail of a loan of Rs 10,000 up to Rs 50,000 by just using your Aadhaar card. 

Interest rate 

Interest rates for personal loans from private lenders begin at 10.50% per year, whereas public sector banks begin at 8.35% per year. This is less compared to other ways of getting a personal loan.


The typical personal loan repayment period is from 1 to 5 years. Some banks, however, could provide terms of up to 72 months. 

Processing charge

For an Aadhaar card loan, it is only 2% or even less of the approved amount. 

Prepayment penalties

The penalties can be up to 4% of the loan balance remaining. 

Processing period 

The processing period for an Aadhar card personal loan may range from a few minutes to a few hours, depending on the procedures of each lender. Some mobile apps can also disperse loans within a few seconds these days. 

Aadhaar card impact on personal loan 

Individuals must provide their KYC documents to use any financial services. To prevent money laundering, the government has mandated that banks and other financial organisations have to gather clients’ KYC information.

In the past, KYC needed a fair amount of documents. But today, it can be done quickly. Moreover, banks have begun e-KYC, which completely digitises the KYC procedure. Verification is an easy process now because Aadhaar has the biometric information of the individuals.

When it comes to personal loans, both private and public sector banks have highly strict validation and verification procedures. Initially, obtaining a loan required the applicant to submit a lot of paperwork. The approval process also took a while.

However, since the Aadhaar card was introduced, fewer documents are needed now. Also, the time taken for a loan to be approved is reduced. 

People mostly prefer personal loans in case of an emergency. They also require a speedy verification procedure. An early deposit of the loan funds into their bank accounts will help them for sure.

Wrapping up 

It’s a no-brainer that an Aadhaar card has made it easier to get a personal loan. Earlier, you had to go through a lot of struggles to get one. Just make sure you do a bit of research for the best deal.

In case you are seeking a loan on Aadhaar card only, do not forget to check out Piramal Finance for the best interest rates.