Personal Loan on Aadhaar card

What is an Aadhaar card personal loan?

An Aadhaar card personal loan is an unsecured loan you can get from banks or NBFCs in India, secured by your Aadhaar card. Aadhaar helps lenders complete e-KYC through a one-time password (OTP) sent to your registered mobile number. This ends the need for physical paperwork, speeding up the loan process.

Who is eligible for a personal loan with an Aadhaar card?

You are eligible for a personal loan with an Aadhaar card if you are an Indian resident with a valid Aadhaar linked to your mobile number. You must be between 21 and 60 years of age. Salaried applicants usually need a minimum monthly income of ₹15,000, while self-employed applicants should show stable business income. Most lenders prefer a CIBIL score of 650 or above. You should also have at least one year of job or business continuity.

Is an Aadhaar card alone enough to get a personal loan?

No. Aadhaar card alone does not guarantee a loan. It only helps with quick identity verification. Banks still check your income, credit score, and repayment ability before approving the loan.

They look at:

• Your monthly income
• Your credit history
• Existing loans or EMIs
• Your overall repayment capacity

(For loans above ₹50,000, a PAN card is compulsory.)

Types of personal loans available with an Aadhaar card

There are several types of personal loans in which Aadhaar is primarily used for KYC.

Instant digital personal loan

• These loans are fully online and very fast.
• Aadhaar OTP is used to complete e-KYC.
• They are common on loan apps and fintech platforms.
• They work well for urgent expenses.
• Approval and money transfer often take place within a day.

Salaried personal loan

• These loans are for people working in private companies, government jobs, or multinational companies (MNCs).
• You need to submit salary slips and bank statements.
• Aadhaar makes the verification process quicker.
• Interest rates are usually lower than those of other personal loans.

Self-employed personal loan

• These loans are meant for business owners, freelancers, and professionals.
• You need to provide income tax returns and business bank statements.
• Aadhaar helps speed up the KYC process.
• Approval depends on the stability of your business income.

Small or short-term personal loan

• These loans are usually between ₹10,000 and ₹50,000.
• They are often marketed as “personal loans onan Aadhaar card only.”
• Basic income checks are still done.
• Interest rates are higher because the risk is higher.

Bank or NBFC personal loan

• These are regular personal loans offered by banks and NBFCs.
• Aadhaar is used as identity and address proof.
• If your credit score is good, you get better rates and higher limits.

Personal loan on Aadhaar card for salaried vs self-employed

The table below outlines the differences in Aadhaar card personal loans for salaried versus self-employed applicants.

Parameter	Salaried personal loan on Aadhaar card	Self-employed personal loan on Aadhaar card
Who it is for	People working in private companies, government jobs, or MNCs	Business owners, freelancers, and professionals
How Aadhaar helps	Aadhaar makes the verification process quicker	Aadhaar helps speed up the KYC process
Key income proof	Salary slips and bank statements	Income-tax returns and business bank statements
Approval basis	Based on salary income and related documents	Approval depends on how stable your business income is
Interest rate trend	Interest rates are usually lower than those of other personal loans	Not specified

Documents required for an Aadhaar card personal loan

The documents listed below are required for an Aadhaar card personal loan.

Category	Documents required
Common documents for everyone	Aadhaar card for OTP-based e-KYC; PAN card (mandatory for loans above ₹50,000); recent photograph; bank account details or cancelled cheque
For salaried applicants	Last 3 months’ salary slips; bank statements for the last 3 to 6 months; Form 16, if available; employee ID card or offer letter

What are the features of an Aadhaar card personal loan?

Here is a list of features and benefits available to applicants for a personal loan using their Aadhaar card.

1. Aadhaar is used for quick OTP-based e-KYC and identity verification.
2. Unsecured loan, so no collateral or security is required.
3. Fully online application with minimal paperwork.
4. Flexible loan amount and repayment tenure.
5. Available from banks, NBFCs and loan apps.

Benefits of a personal loan with an Aadhaar card

Here are some benefits of a personal loan with an Aadhaar card

1. Faster loan approval and a hassle-free and straightforward application process.
2. Can be used for any personal need.
3. Easy access even for first-time borrowers.
4. Helps save time by avoiding branch visits and physical documents.

Eligibility Criteria for Aadhaar Card Personal Loan

Eligibility rules for an Aadhaar Card personal loan differ slightly from lender to lender. Most follow these basic rules.

Citizenship

You must be an Indian resident with a valid Aadhaar card linked to your mobile number.

Age

• Usually between 21 and 60 years.
• Some banks allow repayment up to 75 or even 80 years.

Income

• Salaried applicants should earn at least ₹15,000 per month.
• Self-employed applicants usually need ₹25,000 or more.

Work history

At least one year of job or business continuity is required.

Credit score

• Banks usually want a CIBIL score of 650 or above.
• Some loan apps accept lower scores but charge higher interest.

Documents required for an Aadhaar card personal loan

Below is a list of documents required when applying for an Aadhaar card personal loan –

Common documents for everyone

1. Aadhaar card for OTP-based e-KYC
2. PAN card (mandatory for loans above ₹50,000)
3. Recent photograph
4. Bank account details or a cancelled cheque

For salaried applicants

1. Last three months’ salary slips
2. Bank statements for the last three to six months
3. Form 16, if available
4. Employee ID card or offer letter

For self-employed applicants

1. Income tax returns for the last two or three years
2. Business bank statements for six to twelve months
3. GST registration, if applicable
4. Business registration proof

Best banks and NBFCs for personal loans on an Aadhaar card

Here are the best banks and NBFCs that offer personal loans on an Aadhaar Card –

Banks (lower interest rates)

HDFC Bank

• Interest usually starts from around 9.99% per year.
• Loan amount can go up to ₹40 lakh.

Kotak Mahindra Bank

• Interest starts from around 9.98% per year.
• Flexible repayment options are available.

IDFC First Bank

• Interest starts from about 9.99% per year.
• Popular with salaried employees.

Axis Bank

Interest generally ranges between 9.99% and 22% per year.

ICICI Bank

• Interest starts from around 10.45% per year.

NBFCs and Loan Apps (Faster Approval)

Bajaj Finance

• Loan amounts up to ₹55 lakh.
• Known for fast processing.

Aditya Birla Finance

• Interest starts from around 10.99% per year.

Tata Capital

• Easy documentation and smooth online process.

Piramal Finance

Focuses more on short-term, small loans.

Fees and charges for Aadhaar card personal loan

It is important to understand all costs before applying for an Aadhaar card personal loan.

Processing fee: Usually between 1% and 4% of the loan amount.

Interest rate: Banks usually charge 10% to 18% per year. NBFCs and loan apps may charge 18% to 36% per year.

Stamp duty: Usually between ₹100 and ₹500, based on state rules.

GST: 18% GST is charged on the processing fee.

All charges together can increase the total loan cost by 3% to 8%.

Using an EMI calculator gives a clearer picture.*

How to apply for a personal loan with an Aadhaar card

Here are the online and offline steps that are required to apply for a personal loan with an Aadhaar card –

Online method

Step 1: Go to the lender’s website or app.

Step 2: Fill in basic personal and income details.

Step 3: Complete Aadhaar OTP verification.

Step 4: Upload income and bank documents.

Offline method

Step 1: Visit the bank or NBFC branch.

Step 2: Submit physical documents.

Step 3: The loan is disbursed after verification.

Tips to increase loan approval chances

1. Keep your CIBIL score above 650.
2. Show steady income and job stability.
3. Avoid cheque bounces.
4. Do not miss EMI payments.
5. Apply for an amount you can repay.
6. Choose banks for lower interest rates.
7. Choose NBFCs for faster approval.