Get a fast personal loan with just your Aadhaar card
If you need funds urgently, a personal loan can help you. However, banks require you to complete the Know Your Customer (KYC) verification before granting you a loan.
The usual method of KYC verification, even when done online, can be time consuming. But by using your Aadhaar card, the process of getting an unsecured (personal) loan from your bank can be easier because the Aadhaar card serves as a single document that fulfills all KYC requirements. It serves as proof of birth, residence and identity.
An Aadhaar card stores all relevant information and can also be used to verify your biometric identity. These data are collected by the Unique Identification Authority of India (UIDAI).
“The time for verifying and processing applicant documents has been drastically reduced since lenders accept Aadhaar card as proof,” says Arijit Sen, registered investment adviser with Sebi and co-founder of Merrymind.in, a company based in Kolkata. financial advisory company.
Since KYC can now be done electronically, there is no need to submit physical copies of documents. Many banks will approve a personal loan after uploading a scanned copy of your Aadhaar card.
However, some banks may also request your PAN card. If you do not have a PAN card, additional documents may be required. In addition, credit rating plays a role in all loans, and especially in fast personal loans. If you have a credit score of 700 and above, your loan is more likely to be approved.
The online process
You can go to the lender’s website or app and find out the loan amount you qualify for. It is recommended to compare several offers before making a decision. Once you have completed the required fields and applied for the loan, you will receive a call from a representative. You will then be asked to upload your Aadhaar and other relevant documents if required. Once the documents are verified, your loan will be approved.
“Since Aadhaar card is linked with most of our essential documents such as PAN, mobile number and bank accounts, there is always possibility that Aadhaar details lead to identity theft. To solve the problem, the government has created virtual IDs to ensure user privacy and ensure data protection,” Sen says.
The user can generate the virtual ID (a 12-digit number) through the UIDAI website, which can trace the original Aadhaar number of the person. You can generate the virtual ID as many times as you want. Once you generate a new ID, the previous one becomes invalid. “You can use this virtual IDs feature to mitigate the risk of data theft,” Sen adds.
Although the process of obtaining a personal loan using an Aadhaar card is simple and secure, it does not mean that other factors such as interest rates change. Remember that personal loans come with high interest rates and should be a last resort. Avoid taking out a personal loan to make impulse purchases or to pay off existing debt.