How to Choose the Right Loan on Aadhaar Card for Your Needs?

The versatility of personal loans is the main reason they are a go-to loan option for many. You can use them to pay for school fees, weddings, home improvement, and more. Since they’re unsecured loans, you don’t risk losing your only valuable asset in case you fail to complete the repayment. Furthermore, people can today get personal loans on Aadhar cards, which is even more convenient.

Sometimes back, securing a personal loan was challenging since applicants had to provide multiple documents as proof. But things have significantly changed nowadays. There is no need for people to provide those documents to avail of a personal loan anymore. An Aadhar card is enough proof to help you secure a loan from lenders. As of now, most lenders can provide quick loans on Aadhar cards, which has greatly streamlined the application procedure and reduced the paperwork. How do you choose the best loan on your Aadhar card? Read on to learn about it.

How Aadhar Card Loans are Availed?

If you are eligible, you can easily get a loan on an Aadhar card without much documentation. This is because an Aadhar card is a valid KYC document that acts as identity proof and address proof. Nonetheless, you might be required to provide a PAN card in some cases if the lender asks for it. To avail of the loan, you need to establish your address and identity through the KYC (Know your customer) documents.

Application for a loan on an Aadhar card is done online by filling out the application form and uploading the e-KYC document. In this case, an Aadhar card will act as the KYC document. Lenders will then verify the authenticity of the card, such as the Aadhar card number, name, gender, biometric details, date of birth, photo, etc. You don’t need to provide hard copies either when applying for the loans.

Choosing the Right Loan on an Aadhar Card

Before you lock on a specific personal loan, it’s important to understand some things. Choosing the best loan for your needs on an Aadhar card depends on various factors, as mentioned below:

1. The Loan Tenure

When taking a loan, it’s recommended to repay it earlier. A loan with a short tenure will have higher monthly payments but the number of installments will be less. Missing to make the payments will have a negative effect on your score, which discourages lenders from offering you loans in the future.

Therefore, if you want to become debt-free sooner, ensure you choose a short loan tenure. But, of course, this depends on repayment capacity.

2. Loan amount

The amount of money you need is also an important component to factor in when choosing an Aadhar card loan. This depends on your need for funds. However, it is essential to fix the loan amount you desire and calculate the EMIs based on that amount and the tenure of the loan. This way, you will be able to find the right loan option for you without difficulty. Comparing loan options from different lenders is helpful as you can settle for an affordable loan.

3. Check the Interest Rates

You should also consider the rates offered by the lender when choosing a loan. The higher the rate, the more the amount of money you will pay. Mostly, personal loan rates start as low as 5 percent for private lenders. But these rates vary from lender to lender. So, the rate you get will depend on your chosen lender. Make sure you opt for a lender who offers a personal loan with a lower interest rate.

4. 
   Know the Purpose and Urgency of the Loan

The purpose and how urgent you need to the loan will determine the loan type and features. Let’s say you want a small amount to handle an emergency; you can consider an instant loan on Aadhar. With just minimal documentation and faster disbursal, you will get your funds without delays.

On the other hand, if you require a huge amount of money, you can consider a personal loan on an Aadhar card. These loans come with competitive rates and flexible repayments.

Eligibility Criteria for Loans on Aadhar Card

Before you apply for an Aadhar card loan, you must fulfill the eligibility criteria provided. Below are the requirements you need to meet to be eligible for a loan on an Aadhar card from lendingplate:

• The applicant should be 21 years of age and at most 60 years.
• Credit score:
• Your monthly salary should be at least Rs 20,000.
• You should be an Indian citizen.
• You should also have a bank account with a regular salary credited into it.

Conclusion

Aadhar cards have revolutionized the personal loans sector in India. They have streamlined and simplified the loan applications and hastened loan approvals. Due to that, borrowers can now quickly secure the loans and benefit from the reasonable interest rates and processing fees.

Getting an Aadhar card loan is beneficial and will help put your financial woes at bay. Whether you want urgent funds to settle an emergency or want to make those large purchases, an easier way to access funds is by getting a loan on an Aadhar card.

Note that failure to pay the loan on time will have adverse impacts on your score. Make sure you repay the debt on time.