Get an Online Personal Loan Using Aadhar & PAN Card

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Pune, 27^th December 2023: Everywhere we go, digital technology follows. From scanning to paying at merchant counters or getting a personal loan, fintech solutions make our lives easier and more streamlined. This development is the direct result of the onset of the age of advanced technology and the government’s push towards digitisation. Did you know, you can now apply for a personal loan online using just your Aadhaar and PAN cards? This method not only speeds up the loan approval process but also offers a more straightforward way for individuals to access funds. Let’s understand this in depth.

Understanding the Significance of Aadhaar & PAN for Online Loans

The Indian government has always emphasised the importance of Aadhaar and PAN cards. Both these documents play a crucial role in the financial sector as others. Here’s a quick run-down of how and why Aadhaar and PAN are crucial:

Aadhaar Card: It is a unique 12-digit identification number issued to Indian residents that captures biometric and demographic details.

Purpose: Acts as proof of identity and address. With the Aadhaar Enabled Payment System (AEPS), it allows for seamless financial transactions.
For example, if you need urgent funds for a medical emergency. Instead of undergoing the tedious offline loan application process, you can apply for an Aadhaar card loan online, where you can upload your Aadhaar details digitally.

PAN Card: It is a ten-character alphanumeric number issued as a laminated card by the Income Tax Department.

Purpose: Primarily serves as an identity proof for financial transactions, particularly those of a higher value. It’s indispensable for tax-related matters.
Much like the Aadhaar card-based online loans, if you want to renovate your home, you can opt for a personal loan online. Your PAN card ensures lenders have a clearer picture of your financial behaviour.

Besides PAN and Aadhaar, prepare documents proving your identity, address, and income, with six months’ bank statements and ITR or Form 16.

NEED 2 LINES- In addition to this, what all documents are required, as PAN and AADHAAR are not just the only docs.

Steps to Apply for a Personal Loan Online Using Aadhaar & PAN

Know the steps to apply for a personal loan online using your Aadhaar and PAN:

Preparing your documents: Ensure that your Aadhaar card details, especially the mobile number, are updated. Often, an OTP is sent to this number for verification. Keep a clear digital copy of your PAN card. This helps in verifying your creditworthiness through your tax returns and financial dealings.
Choose the Right Lender: Research various online platforms and NBFCs to find one that best matches your requirements. Pay attention to interest rates, loan tenure, and other terms and conditions.
Online Application Process: Once the basic hygiene points are taken care of, next comes the actual application. Fill out the loan application on your chosen platform. Upload digital copies of your Aadhaar and PAN card. Please note that some platforms might ask for additional documentation based on your profile and the loan amount.
Loan Approval and Disbursal: Post verification, if your application meets the lender’s criteria, you’ll receive an approval. Following this, the loan amount is disbursed to your account, often within a few hours.

Benefits of Using Aadhaar & PAN for Online Personal Loans

Relying on these two crucial documents comes with several advantages. Here are the top ones:

Quick Verification: The digital verification of Aadhaar and PAN cards speeds up the loan application process.
Minimal Documentation: Gone are the days of dozens of paperwork. Uploading just these two documents is enough for many online lenders.
Wider Accessibility: The Aadhaar card loan system ensures that even individuals from remote parts of India can access personal loan online platforms.
Transparent Transactions: With PAN’s involvement, there’s a clear trail of your financial dealings, ensuring both parties’ trustworthiness.

Things to Keep in Mind While Applying for a Personal Loan

While the process has its merits, there are a few points you should keep in mind:

Data Privacy: Always choose a secure platform with robust data protection measures. Data is king and deserves careful consideration before selecting the platform.
Read the Fine Print: Ensure you understand the interest rates, tenure, and other terms before finalising the loan. While these may seem trivial, the devil’s in the details, and you should be aware of what you sign.
Take note of your CIBIL Score: Remember, a CIBIL score of 750 and above is usually preferred. While a higher score doesn’t guarantee better loan terms, it does enhance your credibility and flexibility in loan terms.

Why are NBFCs Pioneers in Digital Lending with Aadhaar & PAN?

Non-Banking Financial Companies (NBFCs) have undoubtedly made a significant mark in the Indian financial sector, especially in digital lending. Their agility and customer-centric approach set them apart from traditional banking channels:

Flexible Lending Criteria: Unlike banks that might have strict lending policies, NBFCs often have more flexible criteria, making it easier for a broader range of borrowers to qualify. This includes those with a slightly lower CIBIL score or individuals who might not have a broad financial history.

Technological Advancements: NBFCs are at the forefront of adopting new technologies. By leveraging Aadhaar and PAN card digital verifications, they’ve streamlined the loan application process, ensuring swift and efficient processing.

Diverse Loan Offerings: Catering to a vast demographic, NBFCs provide an array of loan products tailored to specific needs. Whether it’s a micro-entrepreneur from a tier 3 city or someone from an urban centre seeking a personal loan online, there’s something for everyone.

Customer-Centric Approach: NBFCs often prioritise the customer experience. By offering services like quick query resolutions, online account management, and digital loan tracking, they’ve enhanced the overall borrowing journey.

Summing Up

With instruments like Aadhaar and PAN cards playing pivotal roles, obtaining a personal loan online is no longer a cumbersome process. However, as always, borrowers should remain informed and cautious, ensuring they make the best choices for their financial well-being.