Aadhar Card is one of the most important documents required to get a business loan. It isn’t only important for a business loan but also considered an important personal identification proof as well.
In fact, you can use Aadhar Card can for both as an identity proof and residential proof. There are many cases where the Aadhar card can be beneficial:
- Availing of Subsidies
- Identity Card
- Acquisition of Passport
- Opening Bank Accounts
- Disbursing Provident Fund
But… in this post, we will talk about how the Aadhar card is connected with a business loan and its approval.
What is Aadhar Card?
A Unique Identification Number (UIN) or Aadhar is a 12-digit number which is issued by the Unique Identification Authority of India (UIDAI).
The number captures the individual’s biometric information (iris scan and fingerprints) and demographic information (name, date of birth, gender, address, etc.).
There are other identity proofs as well, such as Passport, PAN card, driving license, etc. but none of them contains the individual’s information in detail as Aadhar or UID Card.
Aadhar Card, today, is an independent identity proof that banks and financial institutions, real estate companies, telecom companies, government schemes, etc accept where identity proof is mandatory.
Also, it is mandatory of the citizens of the country to link their Aadhar or UID Card with all their bank accounts, mobile number, PAN card, ration card, voter identity card, and LPG connection.
Now, with your Aadhar Card linked to your other identification proofs, it is easy for a business loan lender to have access to all your details and verify your Aadhar loan application form easily and fast. So, it can be said that you can avail an instant loan on Aadhar card.
Aadhar Card Benefits
There are numerous benefits that an offer to its holder. An Aadhar card ID meant to make life easier with its universal acceptance as identity proof.
It has also reduced corruption to a great extent due to its unique number. The following are other benefits of Aadhar card:
- Passport in 10 Days: Aadhar card will help in getting a passport is just ten days. This is good news for people who need to travel abroad. The government has rolled out a rule that says Aadhar card is compulsory to get a passport. Thus, the cardholder can get a passport in less than or just ten days.
- New Bank Account: Opening a new bank account has turned more comfortable with Aadhar card. This single card works as age proof, identity proof, and address proof. Thus, there is no need to offer other identification verification documents apart from the card. This saves the account holder from collecting and submitting piles of documents to open a bank account.
- Voter Card: Linking voter card with Aadhar card eliminates the bogus voters. Linking both makes it impossible for a voter to have more than one Voter cards. This is a must require a step to save fake voters from taking any advantage of fake voter ID cards.
An instant loan on Aadhar Card can be availed if the Aadhar is submitted as KYC documents.
How Aadhar Card and Business Loan is Connected?
Now let us understand the link between Aadhar Card and a business loan. While applying for a business loan, the lender asks for a number of documents to verify your identification and address.
While the business owner can submit several documents for the same, Aadhar number can be best KYC document here.
The reason for the same is, as mandated by the government of India, Aadhar Card is linked to various other identification proofs. So, the verification through the UID number is easy since it single-handedly provides access to all the information, from PAN Card and bank accounts and to the mobile number and voter card.
So, when a businessman applies for a personal loan on Aadhar Card, the verification is fast and so is disbursal. Therefore, UID Card is directly related to instant business loans. Besides, there is no need for you to collect several documents to apply for a loan as a single document can work for all.
Noteworthy, Aadhar Card can help in a fast approval of the business loan while PAN Card number, bank statement, Income Tax Return, and business place address proof are also required to avail an MSME loan.
There are other documents as well that the lender requires to process the loan application, such as business plan, business ownership proof, sole proprietorship declaration, Articles of Association, and Memorandum of Associations.
Now, that you know the benefits of Aadhar personal loan for businessman, it is recommended that you apply for Aadhar Card now if you do not have one.
And, in case you already do have, then ensure that it is linked to your bank account, PAN Card, Voter’s Card, and other important documents so you can avail a quick business loan.
ZipLoan offers an instant business loan to small business owners who wish to take their business to new heights. All our business loan products are designed to fit all the needs of the business owners in the best possible way.
We require minimal documentation, and our disbursal process is fast. Our documentation requirement is only limited to Aadhar card, PAN card, bank statement of nine months, and income tax return of the last two years.
Our eligibility criteria are also easy to meet as we just want business vintage of two years, income tax return of more than Rs. 1.5 lakhs, and current bank account statement of more than Rs. 7.5 lakhs.
We have an online application account that saves the borrowers from the hassle of visiting us in person. The documents can also be submitted online, and our interest rates are very competitive in the market. Besides, we approve the loan application and disburse the loan amount in just three days*.