Importance of Aadhar card while applying for instant loan online

instant loan online

Aadhar card is one of the primary and essential identity documents provided by the Government of India. This is because an Aadhar card serves as the basic identification proof under most documentation scenarios across the country. This is why lenders have also made Aadhar an essential document prerequisite to apply for an instant loan without documents.

Additionally, there are several reasons why financial institutions hand out personal loans on Aadhar cards. But before getting into the causes, it is essential to know what an instant online loan is and everything surrounding it.

Instant online loans

As the name suggests, instant loans are unsecured loans readily available for instant approval and disbursal without going through complicated documentation and a lengthy approval process. You can avail of an instant loan online just by sitting at home and clicking through your computer screen or a mobile application, for that instance.

The best feature that makes these loans relevant for a larger crowd is applying for instant loans without documents. You need only your Aadhar card with other easily accessible and essential income documents to borrow the amount you need. Besides, you can avail of personal loans on Aadhar cards for several reasons like education, travel, marriage, medical needs, and many others.

However, there is a higher limit on the amount to be applied, and you can’t borrow a large amount as an instant personal loan. The limit generally ranges between 50,000 to 5,00,000 and varies for different financial institutions.

Reasons why Aadhar card is a compulsory document while applying for instant loans online

  • Legitimate identity proof recognized by the Government of India

Aadhar card is an authentic identity document formally accepted by the Indian Government and most banks and lenders. Therefore, it serves as a legitimate personal document containing the essential identity details of a person.

  • Quicker verification

Aadhar card holds a UID number which allows for quick verification of personal details. Lenders can easily verify your details with the help of a UID number. The number is officially issued on Aadhar cards by the unique identification authority of India. It speeds up the progress and makes way for an instant online loan without documents.

  • Single document with multiple identity details

An Aadhar card holds several identities related to the details of a person in a single document. Essential information like date of birth, biometrics, address, photo, email id, bank details are all officially listed on Aadhar card, which makes it a lot easier for lenders to gather multiple identity details of the applicant before handing them personal loans on Aadhar cards.

  • Paperless processing

The unique identification number incorporated in the Aadhar card allows for electronic KYC processing. And E-KYC helps avoid a lot of paperwork and hassle that otherwise would have been compulsory for getting loan approval. This way, loans are made more manageable, and you don’t need to visit the bank to submit KYC documents physically.

  • Contact link

Aadhar cards are also linked to personal phone numbers through which a lender can directly contact you as and when required. Therefore, direct contact leads to seamless loan progress. Moreover, it also allows the financial institutions to send you updates regarding your loan status and other vital details.

So, these were the main reasons why an Aadhar card is a must to apply for an instant loan online. Now, if you’re wondering how to use an Aadhar card and apply for an instant loan, the general guidelines are listed below. Following this, you can easily apply for an instant loan from the comfort of your house.

  1. Explore the market and try to search for a reliable lender that hands out instant loans.
  2. Collect essential data regarding various financial institutions.
  3. Reach out to them via phone and understand their loan eligibility requirements.
  4. Take an expert’s advice and decide on your lender.
  5. Download the authentic mobile application from the lender.
  6. Follow the particular process as directed in the mobile application.
  7. Fill out the necessary details as asked while applying. For example, the purpose of borrowing, the amount needed, etc.
  8. Upload your Aadhar card and bank account details accordingly.
  9. Follow the electronic verification process.
  10. Complete the application by digitally signing the proposed documents.

Thus, you can apply for an instant loan online without documents in the ten easy steps listed above.

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About the Author: Peter Beaumont

Peter Beaumont is a senior reporter on Daily Mid Time Global Development desk. He has reported extensively from conflict zones including Africa, the Balkans and the Middle East and is the author of The Secret Life of War: Journeys Through Modern Conflict. Email: peter@dailymidtime.com