Get the Tata Capital App to apply for Loans & manage your account. Download Now


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

Tata Capital > Blog > Personal Use Loan > How to get an Instant Small Cash Loan on Aadhaar Card

Personal Use Loan

How to get an Instant Small Cash Loan on Aadhaar Card

How to get an Instant Small Cash Loan on Aadhaar Card

In an era where financial agility is more important than ever, having access to quick and hassle-free loan options can be a game-changer. The Aadhaar card, a unique identification document in India, has revolutionized the way we access financial services, including the procurement of small cash loans. This article will guide you through the seamless process of applying for a small cash loan using your Aadhaar card, a facility that combines convenience with efficiency, making it an ideal choice for immediate financial needs.

Understanding Aadhaar Card Loans

The Aadhaar card, a unique identification number issued by the Government of India, has simplified the way financial transactions and verifications are done in the country. It's not just an identity proof but also a gateway to various financial services, including small personal loans. These loans are typically unsecured, meaning they do not require any collateral.

Requirements for an Aadhaar Card Loan

To be eligible for a small cash loan on an Aadhaar card, applicants must meet certain criteria:

1. Age: The borrower should be between 21 and 60 years old.

2. Credit Score: A credit score of 750 or higher is typically required.

3. Salary: A minimum net monthly income of Rs. 25,000 is necessary, with at least 2 years of work experience, including 1 year in the current organization.

4. Residence: Applicants should have been living in their current residence for more than 12 months.

5. Aadhaar Card: Must be linked with your PAN and mobile number.

Main Features of a Small Cash Loan on Aadhaar Card

1. Loan Amount: Ranges from Rs. 10,000 to Rs. 50 lakhs.

2. Interest Rate: Starts at 10.50% for private lenders and 8.35% for public sector banks.

3. Tenure: Typically 1 to 5 years, with some banks offering up to 72 months.

4. Processing Charge: Up to 2% of the approved loan amount.

5. Turnaround Time (TAT): This varies from a few hours to days, depending on the lender.

Steps to Apply for a Small Cash Loan Using Aadhaar Card

Applying for a small cash loan using an Aadhaar card is a straightforward and user-friendly process. Here are the key steps involved:

1. Choose a Lender: Many financial institutions and NBFCs offer personal loans based on Aadhaar cards. Select a lender based on your requirements, considering factors like personal loan interest rates, loan amount, and repayment terms.

2. Online Application: Visit the lender's website or app and fill out the application form for a small personal loan. You'll need to provide details like your name, income, employment information, and Aadhaar card number.

3. Document Submission: Along with your Aadhaar card, you may need to submit additional documents like PAN card, salary slips, and bank statements. Many lenders have simplified this process through online verification.

4. Loan Approval and Disbursement: If you meet the eligibility criteria and your documents are in order, the loan can be approved quickly. The disbursal of the loan amount is usually done directly into your bank account.

Advantages of Availing Small Cash Loan on Aadhaar Card

Simplified Documentation

The Aadhaar card, linked to biometric data, serves as a comprehensive identity and address proof. This reduces the paperwork required for loan approval, making the process much quicker and hassle-free. The e-KYC (Electronic Know Your Customer) process enabled by the Aadhaar card allows for a smooth and efficient verification process.

Quick Processing and Disbursal

One of the main advantages of using an Aadhaar card for a small cash loan is the speed of processing. Due to the streamlined e-KYC process and reduced paperwork, the approval and disbursal of the loan are often much faster compared to traditional loan processes. This quick disbursal is particularly beneficial in emergency situations where funds are needed urgently.

Accessible to a Wider Audience

The ease of application and minimal documentation requirements make these loans accessible to a larger segment of the population, including those who may not have access to traditional banking services. This inclusivity is crucial in a country with diverse socio-economic backgrounds.

No Collateral Required

Small cash loans on Aadhaar cards are usually unsecured loans. This means that borrowers do not need to provide any collateral, such as property or gold, to avail of the loan. This feature is especially beneficial for those who do not possess significant assets but need immediate funds.

Competitive Interest Rates

Despite being unsecured and easy to access, these loans often come with competitive interest rates. This is particularly advantageous when compared to the high interest rates of credit cards or unorganized sector loans.

Flexibility in Loan Amount and Repayment

Lenders typically offer a wide range of loan amounts, allowing borrowers to choose an amount that suits their specific needs. Additionally, the repayment terms are often flexible, with options to choose a tenure that aligns with the borrower's financial capacity, ensuring manageable EMIs (Equated Monthly Installments).

Improves Credit Score

For borrowers looking to build or improve their credit score, repaying a small cash loan on time can be beneficial. Timely repayments are reported to credit bureaus, positively impacting credit scores, which can be advantageous for future loan or credit applications.

Online Process

The entire process, from application to disbursal, can often be completed online, adding convenience and saving time for the borrower. This digital approach aligns well with today's increasingly online lifestyle.

Conclusion: Harnessing the Power of Aadhaar for Financial Needs

The ease and efficiency of obtaining a small cash loan using an Aadhaar card cannot be overstated. This process not only simplifies the borrowing experience but also opens doors to quick financial solutions, especially in times of urgent need. As you consider taking this step towards managing your immediate financial requirements, remember that choosing the right lender is crucial.

Tata Capital Personal Loan emerges as a prominent choice in this context. Known for its customer-centric approach, competitive interest rates, and flexible repayment options, Tata Capital ensures that your journey towards securing a personal loan is smooth and hassle-free. Whether it's for an unexpected expense or a planned purchase, Tata Capital Personal Loan, with its reliance on streamlined processes and customer satisfaction, stands as a reliable ally in your financial endeavours.

Leave a Reply

Your email address will not be published. Required fields are marked *