How to Avail a Personal Loan on Aadhaar

The Aadhaar Card was launched in 2010 by the Government of India so that the Indian citizens could entertain the benefits of various public and private sector services. For those who don’t know, Aadhaar Card is simply a unique 12 digit number that’s made after the collection of the iris scans and fingerprints.

There’s so much to discuss the benefits of an Aadhaar Card. Other than helping you avail various services, it even acts as proof of citizenship. Let’s brief in a few points what basically is the whole and main intention of an Aadhaar Card.

  • A common identity for the Indian citizens
  • The Aadhaar Card eliminates the need for a middleman or broker for availing various government services.
  • It eliminates the need of carrying various documents as a single Aadhaar  Card can act as age proof, address proof, etc.

Steps To Follow To Apply For a Personal Loan Through Aadhaar Card:

Gone are the days, when you had to physically visit a branch to get your personal loan sanctioned. Thanks to digitalization, the process of applying for a personal loan can take place online right at your own convenience. In the market, various lenders can help you to perform a comparison of the best personal loan offers among the leading banks and financial institutions. Such platforms work in accordance with the financial institutions, and henceforth, extracting you the various offers and discounts.

The online process of applying for a personal loan on aadhar card is very simple and straightforward! There’s no requirement for any kind of physical documents. All that is required is a scanned copy of an Aadhaar Card. That being said, let’s see how the process unfolds:

  • Visit the lenders or the respective portal to perform the loan offers comparison.
  • Choose the Apply Online option under the personal loan section.
  • Fill up the respective details that are required including employment, personal and professional details.
  • That’s it! Your first half part is done! You now have to just wait until some representative doesn’t reach out to you for the background verification process.
  • Submit a scanned copy of your Aadhaar  Card, and any other documents, if required
  • The team will now verify your application, and if everything is fine, then your loan amount will be deposited directly into your bank account only.

Impact of Aadhaar on Personal Loan:

Money laundering was high in India, and that’s why a few years back, the Government of India made Know Your Customer (KYC) documents a compulsion for the avail of financial services. The banks and other financial institutions have to compulsorily collect the KYC documents from their customers.

In the initial phase, KYC verification was a kind of hectic process as it was physical and a lot of documents used to be required. However, over time, the process eased, and today banks themselves promote e-KYC as much as they can. Aadhaar Card includes the essential biometric information of the individuals, which makes the whole online verification possible and quite fast.

Since the advent of the Aadhaar Card, the overall process seems to have become smoother, and even the time has significantly reduced. Personal loans are mostly opted for by individuals, as in many cases, it’s required for emergency purposes. The Aadhaar database contains the personal details of the individuals, therefore, making it easy to get the loan approved at the earliest.


1) Is it possible to apply for a personal loan through an Aadhaar Card, in case you don’t have your PAN card?

Ans: Yes, it’s very much possible! However, you may have to provide a lot of additional documents, to act as proof of validation in place of a PAN card. The documents could vary from your salary slips to your Voter ID card. It all comes down to the lender, as what all he is looking for.

2) Is there a requirement for a co-applicant when applying for a personal loan through an Aadhaar Card?

Ans: Normally, there’s no requirement to apply for a personal loan along with a co-applicant, in the case of an Aadhaar Card.

3) How much time will it take for the loan amount to be credited to my bank account?

Ans: If you have met the eligibility criteria, and all your documents are submitted, then the verification process will be done easily and faster. Once the verification is done, it’s just a matter of 2-4 before the amount gets credited to your bank account.


Aadhaar Card has acted as a major boon for the individuals who are looking to apply for a personal loan, as this single card makes the whole process a lot smooth, systematic and timely. If you meet the eligibility criteria and have an Aadhaar Card with you, then in today’s time, hardly any bank or financial institution would refrain from allocating you the loan amount.