The Aadhaar card is a vital identification document because it is required for many tasks, such as school admissions and opening bank accounts. However, few people are aware that the same Aadhaar card can be used to get a loan.
You can easily apply for a personal loan with the help of your Aadhaar card. Numerous banks, such as the State Bank of India, HDFC Bank, and Kotak Mahindra Bank, offer Aadhaar-based loans to their customers.
Before you consider this option, you should know your credit score. Any customer with a credit score of at least 750 can easily apply for a loan using their Aadhaar card. Notably, in such cases, banks charge a low-interest rate.
Here's How to Apply for a Personal Loan Using Your Aadhaar Card
1. Go to the bank's official website to apply for a loan using your Aadhaar card. Notably, you can also apply for a personal loan through the bank's mobile app.
2. Enter the one-time password (OTP) that you received on your mobile phone.
3. Choose the option for a personal loan.
4. Enter the loan amount and other required information, as well as your birth date and address.
5. Next, you must upload a copy of important identity documents such as your PAN card and Aadhaar card. After the banks cross-check the information that you have provided, they will approve your loan.
When an Aadhaar card is used as a paperless e-KYC document to obtain a personal loan, the transaction is known as an Aadhaar card loan.
Since the Aadhaar card meets your eligibility requirements for biometric verification, the overall process of obtaining a personal loan approval becomes much simpler and faster.
