The government of our country launched the Aadhar card in 2010 to help the citizens enjoy numerous services in the public sector and the private sector. Aadhar number essentially is a 12-digit number provided by the government to the citizens after collecting their fingerprints and iris scans.
Aadhar card today is not just limited to acting as a proof of citizenship but also helps in opening bank accounts, getting PAN card, buying a sim card, filing Income Tax Returns, applying for a passport, and availing loans.
Yes, you read that right! Now you can avail an instant loan on Aadhar card. In post, we shall discuss the same, but before let’s discuss the objectives of the Aadhar card.
Objectives of Aadhar Card
- Provide a single identity to all the citizens of the country.
- To use a single card as proof for identity, address, and age. Therefore, individuals will not have to carry any other document.
- Individuals can avail various government schemes without taking help from any broker or middleman.
Aadhar Card Loan Yojana
An individual who wants to avail any financial service, say a business loan, needs to provide his KYC (Know Your Customer) documentation.
It is mandated by the government for the banks and other financial institutions to collect the KYC documents of the customers. It is a step taken to stop money laundering. Earlier, a number of documents were required for KYC. But, these days, it is very simple to complete one’s KYC.
Since Aadhar card contains biometric data of all the individuals, it has made verification an uncomplicated and fast process. Besides, financial institutions have also started e-KYC wherein they perform the entire KYC process digitally.
Business loans are availed by business owners to meet urgent business requirements. Therefore, there is a need for the verification process to be fast so that the loan amount can be disbursed faster.
With the KYC verification going digital, availing an instant business loan on Aadhar card and PAN card is possible now. The personal details of the borrower are easily available in the Aadhar database. Therefore, the time taken in processing and approving a loan application is less.
That said, private and public banks have a strict verification process when it comes to business loans. They require a long list of documents to be submitted by the business owners to get access to a loan for business.
And the time taken by them to approve the loan application is also very long. However, the NBFCs and online lenders require lesser documents for Aadhar card loan and approve the same in comparatively lesser time.
Benefits of Aadhar Card for a Loan
- It offers easy access to business loans and other such services as the lender requires KYC documents. Aadhar card is an apt way to prove identity as well as citizenship.
- Aadhar card acts as a one-for-all proof, like name, age, address, citizenship, etc.
- It can also be used for e-KYC (online verification).
Documents required for Instant Loan on Aadhar Card
Aadhar business loan can be availed by submitting the following documents:
- Aadhar card and PAN for identity proof
- Aadhar card, electricity bill, etc. for address proof
- Income Tax Return
- Bank statement
- Loan application form
Methods to Apply for Aadhar Card Loan Online Apply
Well, it is not mandatory for you to provide Aadhar card to avail an unsecured business loan. Nevertheless, providing it makes the process easier. The process turns simple for the financial institutions’ employees to process the application and perform the verification process.
There is also a paperless mode where the borrower can submit the documents online on the website or mobile application of the lender. In the case of e-KYC, no physical papers are submitted. Their images or PDF files are uploaded online.
One can conclude that it has undoubtedly become easy to apply for a loan on Aadhar card only. Verification is done quickly, and the NBFCs and online lenders can check everything on Aadhar, such as name, address, date of birth, etc.
This, of course, helps the business owners to get the amount quickly if they apply for Aadhar card loan.