Most lenders in India have a fundamental requirement of identity proof for applicants as a KYC document. The Aadhar Card is the primary identity proof of an Indian Citizen. It is a unique 12-digit number issued by the Indian Government that serves as proof of identity and address. It is a mandatory document for applying for instant Personal Loans in India. You can apply for Instant Online Loans through an e-KYC procedure and submit the Aadhar Card online.
What are Online Instant Loans?
Online Loans may be secured or unsecured. The difference between the two is the presence of collateral against the loan. Instant Loans are generally short-term loans for a smaller amount against a higher rate of interest. These loans are granted quickly without a lot of documentation. However, an Aadhar card is a compulsory document that the borrower needs to furnish while applying for an instant Personal Online Loan in India. The interest on Personal Loans in India varies based on factors such as Credit Score, Income, Existing Debt, etc.
Why is an Aadhar Card important for an Instant Online Loan?
1. It is a unique identity and address proof
An Aadhar card has a 12-digit unique number issued by the Government of India to Indian citizens that acts as an identification number and address proof of the loan applicant. Hence, it is genuine proof of citizenship and the identity of each Indian citizen.
2. E-KYC verification can be done in real-time
The electronic KYC can be done in real-time immediately during an Instant Personal Loan application. The verification result is immediate and quick, allowing the loan to get sanctioned on the same day as the application.
3. One document has verifiable proof of all details
The Aadhar card is a common document that can prove all personal details like date of birth, address, photo of individual, citizenship, etc. Therefore, the applicant need not furnish multiple biometric verification documents for an instant Personal Loan.
4. Aadhar card is linked to the mobile number
The link between Aadhar cards and mobile numbers helps expedite the verification process for the loan application and also helps in weeding out fraudulent borrowers using illegitimate SIM cards. It subsequently safeguards the interest of the lending institution and reduces the risk of bad loans.
5. Suitable for emergency loan requirements
In India, people often apply for Instant Personal Loans in emergencies, and the requirement of funds needs to be fulfilled as quickly as possible. Due to the ease of biometric verification and identification, Aadhar cards make sanctioning such emergency loans quicker and easier. The E-KYC methods on various loan agency websites or applications are user-friendly and less time-consuming.
6. Safeguard from money laundering and fraud
The Government of India made KYC mandatory for all loan applications to prevent fraud and money laundering cases. The well-set up and configured E-KYC largely prevents the usage of forged documents due to the link between mobile numbers and Aadhaar cards and PAN of Indian Citizens.
7. The Available mode of proof for all Indian Citizens
Aadhaar cards are a government document almost every citizen of India has. It makes it convenient for citizens to choose a lending institution in the organised sector for Instant Loans. It will subsequently reduce informal lending and exploitation among borrowers and lending institutions.
How to Apply for an Instant Loan online with an Aadhaar card?
Most lending institutions have applications and websites that are very user-friendly and allow even non-tech savvy people to apply for instant Personal Loans conveniently. Of course, some applications’ intricate details and processes may vary while using.. However, the broad procedure for loan application is as follows.
- Visit a lending institution’s website
- Apply for the suitable loan option on the chosen lending institution’s website or application.
- A representative or agent may contact the applicant for the same
- The Aadhaar card and other required documents must be scanned and submitted online as per instructions for verification.
- After verification, the Personal Loan amount will be sanctioned and credited.
Nowadays, instant Personal Loans are the most suitable and favorable method to finance immediate fund requirements. The verification procedures and reduced time lapse between application and sanction incentivize more people to approach the lending institutions and formally apply for instant Personal Loans online. It promotes lending and borrowing in the formal sector, and the Personal Loan interest rates are regulated. Moreover, the Indian economy is fast-growing and such developments for financing are available to a larger market, regulating the functioning of borrowing and lending efficiently.