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Tata Capital > Blog > Personal Use Loan > ₹20,000 Loan on Aadhaar Card

Personal Use Loan

₹20,000 Loan on Aadhaar Card

₹20,000 Loan on Aadhaar Card

Sometimes, unexpected situations arise when you need an immediate financial buffer; this is where a Rs. 20,000 loan on Aadhaar cards comes in. Now, individuals can access instant, paperless loans, with the only documentation required being their Aadhaar card. Skip the long processing, documentation, and application process with nothing but your 12-digit Aadhaar! Whether it is a medical emergency, an unplanned mandatory trip, overdue bills, or unexpected purchases, this minor, easy financial fix can be a lifesaver. Below, we review everything you need to know to utilise this new offering. 

Interest Rates & Charges for Rs. 20,000 Loan on Aadhaar Card

When availing of a small cash loan on your Aadhaar card, it is essential to take note of the different interest rates that may apply. These include:

ChargesDetails
Interest RateThis refers to a percentage charged by the lender on the loan amount that you borrow. Depending on the lender, this could range from 10.99% to 14.99% or more. 
Interest Rate (Govt. Banks)This refers to a percentage charged by the government on the loan amount that you borrow. This could range from 7.3% to 12%. 
Repayment TenureThis refers to the time period for which you’ve taken the loan. This also varies according to the lender, and could range from 2 to 5 years. 
Processing FeeThis is a charge levied by the lender to process your loan application. This is usually around 5% of the loan amount.
Pre-closure FeeThis refers to the fee levied by the lender in case you decide to repay your loan amount entirely before the end of the loan tenure. This is typically around Rs. 500 plus taxes. 

Eligibility for Rs.20,000 loan on Aadhar Card

Like other loans, to avail of the Rs. 20,000 loan on your Aadhar Card online, you must meet specific eligibility criteria, including:

  • Citizenship: To apply, one must be an Indian citizen.
  • Age range: Individuals should be between 21 and 65 years of age.
  • Documentation: Applicants should have an active Aadhar Card. They must also have active bank accounts and provide the necessary documentation.
  • Income: A reliable source of income, be it via a job or through self-employment, is a must.
  • Credit history: The applicant’s CIBIL score should be 685 or more. 

It is important to note that these are the general requirements that most lending institutions typically require for an Aadhar card loan of Rs. 20,000. However, variations might occur depending on the specific financial institution. They may have their own income and credit score requirements. Because of this, it is vital to research various lenders and their loan terms to choose the one that best aligns with your needs. 

Documents Required for Rs. 20,000 Loan on Aadhar Card

Here is a general list of documents you might need to furnish for a Rs 20,000 loan on an Aadhar card:

  • Aadhar card
  • Proof of income
  • Address proof
  • Bank statements
  • Other relevant financial documents

How to Apply for An Instant ₹20,000 Personal Loan on Aadhaar Card?

You need to follow these simple steps to get an amount of Aadhar card loan of Rs . 20,000 in your account.

  • Step 1: Visit your lender’s website and check their loan offers.
  • Step 2: Sign in by filling in the required details and the loan requirements
  • Step 3: Upload a copy of your Aadhar Card and PAN card.
  • Step 4: Once documentation is done, your application will undergo a screening and approval process.
  • Step 5: Upon approval, the lender will disburse the sanctioned amount to your bank account.

But before you apply for an Aadhar card loan online, carefully go through the loan terms and the fine print associated with it.

If you don’t have a PAN card, you can submit your driver’s license, salary slips, or Voter ID/passport.

Features and Benefits of Rs. 20,000 loan on Aadhar Card

Apart from being pretty convenient, this quick loan scheme also provides you with:

  • Swift Approval: You don’t have to wait for an extended processing, approval, and disbursement procedure. With an Aadhar card loan of Rs. 20,000, you can get the money you need in minutes.
  • No Collateral: This loan falls into the unsecured category, meaning that your lender won’t ask you to put up any of your assets as collateral or security.
  • Flexibility: You can choose your loan amount and tenure per your financial requirements. The maximum loan amount is Rs.20,000, and the maximum tenure is two years.
  • Minimal Documentation: Loan documentation is typically quite extensive. Thankfully, the only document you require for this small loan is your Aadhar card. However, the documentation requirement varies between lenders. However, they’re usually minimal.

How to calculate EMI for a Rs.20,000 loan on an Aadhar card?

You can use the Tata Capital personal loan EMI calculator to calculate your EMI for a Rs 20,000 loan on an Aadhar card. Simply add your loan amount, duration, and rate of interest. The calculator will instantly calculate your monthly EMI, total amount payable, and total interest payable. Alternatively, you can also make these calculations using the following formula:

A = P (1 + r/n) *nt

A= total amount paid in interest

P= principal

r= interest rate

t= tenure

n= compounding frequency

For instance, let’s say you take a Rs 20,000 loan on an Aadhaar card at an 11% interest rate for 18 months. Adding these numbers to the formula, your total interest amount will come to Rs 3,535. And so, you will have to pay Rs 23,535 (Rs 3,535 + Rs 20,000) over the tenure of 18 months.

How to Avoid Rejection for Rs.20,000 Aadhar Loan

As easy and hassle-free as it seems, there’s still a chance for your loan application to be rejected or delayed. To make sure that doesn’t happen, here are some fool-proof tips you can follow:

  1. Maintain a good credit score: If you want speedy approvals, pay attention to your credit score. Lenders usually favour buyers with higher credit scores, as it indicates good financial habits. Hence, the higher your score, the faster the approvals.
  2. Don’t make too many applications: When shopping around for favourable loan offerings, make sure you don’t apply for multiple loans, as too many applications can quickly bring down your credit score and creditworthiness. In some instances, lenders will outright reject your application.
  3. Fill forms correctly: When applying, ensure you put in all information correctly. If the lender finds any discrepancies, they will return the application for correction or reject it entirely.

With these simple tips, you can procure an Rs. 20,000 loan on Aadhar card without hiccups.

Tips to Get a Small Cash Loan on Aadhar Card

To ensure a smooth process during your small cash loan application, here are some steps to take:

  • Ensure your Aadhaar and bank account are already linked.
  • Research all your options and select an authorised lender who suits your requirements and provides online loan applications for a seamless process.
  • Try maintaining a good credit score and a stable source of income.
  • Ensure you complete all the required documentation promptly.
  • Remember to select a repayment plan that aligns with your financial needs and objectives.

Conclusion

As you can see, this instant Rs.20,000 loan on an Aadhar card provides a quick, hassle-free, and convenient way to get some cash. It doesn’t require extensive documentation, doesn’t have strict eligibility requirements, and allows you to make repayments flexibly via a tenure of your choice.

But before you opt for this quick loan, remember to assess your liabilities and make a borrowing decision accordingly.

If you require more than Rs. 20,000 and want a process as simple and disbursement as quick as an Aadhar card loan, Tata Capital is here to make that happen.
With our personal loans, you can borrow up to Rs. 35 lakhs for a maximum tenure of 7 years and affordable interest rates starting at 10.99%. And all this with our simple 4-step application process, super-fast disbursals, and flexible terms.

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FAQs

What CIBIL score is required to avail ₹20,000 Personal Loan on Aadhaar Card?

The CIBIL score required to avail of a Rs 20,000 personal loan on an Aadhaar card can vary with lenders. Generally, a credit score of more than 650 is considered good.

What is the minimum age to apply for ₹20,000 personal loans by Aadhaar card?

The minimum age to apply for a Rs 20,000 personal loan by Aadhar card is 21 years. The maximum age is 65 years.

Do I need a salary slip to avail 20000 personal loan on Aadhaar card?

While some lenders might require a salary slip to avail 20,000 personal loans on an Aadhar card, others might not. This will depend on the list of documents your chosen lender requires to process the loan.

How do I get a small cash loan on an Aadhaar Card?

To get a small cash loan on an Aadhar card, visit your lender’s website, sign in and share the required details and loan requirements. Next, upload a copy of your Aadhar card and PAN card. Once your application is approved, the lender will disburse the loan directly into your account.

Can I apply for a small cash loan on my Aadhaar card if I have a low credit score?

Unfortunately, a low credit score reduces your chances of getting a small cash loan on your Aadhar card. Aim to maintain a CIBIL score of 685 or higher for a smooth application.

Can a salaried person apply for Rs 20,000 Aadhaar card loan, if he is earning Rs 15,000 per month?

Yes, a salaried person can apply for a Rs 20,000 Aadhar card loan, even if they’re earning Rs 15,000 per month. Lenders consider many criteria other than income, such as your CIBIL score, credit history, age, residential status, etc., to approve or reject the loan application.

How much loan can I get with a CIBIL score of 700?

The loan amount you can get with a CIBIL score of 700 depends on your chosen lender’s policies and eligibility criteria.

What credit score is needed for a Rs 20,000 Aadhaar card loan?

A credit score of 650 and higher will help qualify you for a Rs 20,000 loan. However, the approval of the loan will depend on other factors, such as age, current liabilities, income, etc.

What is the repayment tenure for this loan?

The repayment tenure for these loans varies depending on the lending institution. It is essential to choose a tenure that aligns with your loan repayment ability. 

Do I need to have a bank account to apply for this loan?

Yes, in most cases, one must have a bank account to apply for an Rs. 20000 loan on Aadhaar card. This is where your loan amount will be deposited, as well as where your EMIs are deducted.

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