If you’re looking for a fast and simple way to get a personal loan on an Aadhaar card, applying for a Rs. 5 lakh loan could be the solution. Aadhaar-based loans streamline the entire process, reducing the documentation requirements and making it easier for people to access funds quickly. Whether you’re facing an emergency or simply need extra cash for a planned expense, the digital loan process allows you to apply from the comfort of your home. Check out this simple step-by-step guide on how you can secure a Rs. 5 lakh loan using your Aadhaar card and what you need to qualify for it.
Knowing the Basics of a Personal Loan on Aadhaar Card
A personal loan on Aadhaar card is an unsecured loan offered by various banks and financial institutions. The key benefit of using your Aadhaar card is that it acts as a single document for both identity and address verification, simplifying the loan approval process. These loans do not require collateral and are mostly dependent on your credit score, income, and other financial credentials. You can apply for both small and large loans, even up to Rs. 5 lakh, making a personal loan on aadhar card a highly versatile option for all kinds of borrowers.
Eligibility Criteria for a Rs. 5 Lakh Loan
Before applying, it’s crucial to understand the 5 lakhs personal loan eligibility criteria that lenders usually require. The eligibility factors ensure that borrowers can comfortably repay the loan.
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Age: The applicant must be between 18 and 60 years old.
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Employment: Self-employed or salaried individuals with steady income.
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Minimum Income: Lenders generally require a monthly income of Rs. 15,000 or more.
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Credit Score: A credit score above 700 is generally preferred for quick approval.
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Documents: Aadhaar card for identity verification, PAN card, and income proofs like bank statements or salary slips.
The combination of these factors will influence the lender’s decision on the loan amount, interest rate, and repayment terms.
How to Apply for a 5 Lakh Loan Using Aadhaar Card?
Once you meet the 5 lakhs personal loan eligibility criteria, you can follow this simple step-by-step process to apply for a loan.
Step 1: Choose Your Lender
It’s essential to pick a lender that offers good terms on a personal loan on Aadhaar card. Whether you prefer banks, non-banking financial companies (NBFCs), or digital loan platforms, research your options thoroughly. Compare interest rates, repayment tenures, and processing fees to ensure you’re getting the best deal.
Step 2: Register and Fill Out Your Application
Most lenders have streamlined digital processes. You can either visit their website or download their app. Register using your mobile number and email, then start filling in personal information like your name, date of birth, and employment details. You’ll also need to provide your Aadhaar and PAN card details at this stage.
Step 3: Complete KYC Verification
The personal loan on an Aadhaar card requires completing the Know Your Customer (KYC) process. This step ensures that your identity and financial background are verified. Aadhaar-based KYC is quick, as it uses biometric data and OTP verification for authentication.
Step 4: Submit Required Documents
After KYC, you’ll need to submit some additional documents like bank statements and income proofs, depending on the lender’s requirements. This minimal documentation speeds up the approval process.
Step 5: Select Loan Amount and Repayment Tenure
Once the KYC is completed, you can choose your loan amount and repayment tenure. For a Rs. 5 lakh loan, lenders usually offer repayment terms ranging from 12 to 60 months. Make sure to choose an EMI plan that fits your budget.
Step 6: Approval and Disbursal
After submitting your application, the lender will review your documents and credit score. Approval usually takes a few minutes to a few hours, depending on the lender. Once approved, the loan amount is disbursed directly into your bank account, often within 24 hours.
Benefits of Applying for a Rs. 5 Lakh Loan Using Aadhaar Card
Applying for a Personal Loan on Aadhaar Card Offers Several Advantages:
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Minimal Documentation: The Aadhaar card simplifies the documentation process since it serves as proof of both identity and address.
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Quick Disbursal: Once the KYC process is complete, the loan is often disbursed within 24-48 hours.
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No Collateral: These loans are unsecured, so you don’t need to pledge any asset as collateral.
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Flexible Repayment: Many lenders offer flexible repayment terms that allow you to choose the EMI plan that works best for you.
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Competitive Interest Rates: If you meet the 5 lakhs personal loan eligibility criteria, you can secure attractive interest rates, especially if you have a good credit score.
EMI Calculation for Rs. 5 Lakh Loan
Knowing your EMI beforehand is crucial for budgeting. You can easily calculate your EMI using online calculators.
Here’s an Example:
If you take a personal loan on an Aadhaar card for Rs. 5 lakh at an interest rate of 12% with a tenure of 3 years, your monthly EMI would be approximately Rs. 16,607.
Use the Formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1],
where P is the loan amount, R is the interest rate, and N is the number of months.
Conclusion
Applying for a Rs. 5 lakh loan using your Aadhaar card is a hassle-free experience that requires minimal documentation and offers fast disbursal. With Aadhaar-based KYC, lenders can quickly verify your identity and financial details. If you meet the 5 lakhs personal loan eligibility criteria, you can easily secure the loan within a few steps. Always compare lenders, understand the terms, and choose a repayment plan that fits your financial needs. By following this straightforward process, you can get the funds you need quickly, helping you manage your finances without unnecessary delays.