How to Get an Emergency Loan on Aadhaar Card

The process of obtaining an Emergency Loan using your Aadhaar card involves steps as simple as finding a lender, submitting your Aadhaar card, and receiving swift loan approval. It fulfils your monetary requirements instantly, making it an ideal solution in times of crisis. Explore the step-by-step process of availing an Emergency Loan on an Aadhaar card, along with its features and benefits, in this blog. Keep reading to know more!

What is an Emergency Loan on Aadhaar Card?

An Emergency Loan on an Aadhaar card is a quick Personal Loan offered to Indian citizens where the Aadhaar card serves as key identity and address proof. This simplifies the application process, enabling you to apply for the loan at any time and receive faster disbursement during emergencies.

The maximum loan amount you can receive depends on factors like your income, credit history, and lender policies. As long as you meet the basic eligibility criteria, you can apply and get funds swiftly to manage unforeseen expenses. With no end-use restrictions, it's a boon in times of urgency.

ALSO READ:- How to Get Instant Cash Loan Within 1 Hour?

Eligibility & Documentation Requirements For Emergency Loan On Aadhaar Card

Eligibility

Before you apply for a Personal Loan, ensure you meet these basic eligibility requirements:

• Age Requirements: Between 21 and 65.

• Income Proof: Salaried individuals need a minimum monthly income of ₹15,000-₹30,000, self-employed individuals need ₹15 Lakh per annum.

• Employment Stability: A minimum of 1-2 years of total work experience, with a defined period of continuous employment with your current employer.

• Credit Score Requirements: A CIBIL score of 650 or above is considered a good credit score for most lenders.

Documentation

As part of the loan application process, here are some of the basic documents required:

• Aadhaar Card: Needless to say, you can't apply for this loan unless you are a holder of your own Aadhaar card issued by UIDAI (Unique Identification Authority of India).

• PAN Card: Holding a PAN card is a must, as it serves as further identity verification.

In some cases, you may need additional documentation to further assess your repayment capacity, like bank statements and salary slips to verify income, or address proof such as a rent agreement or utility bill (especially if it differs from the Aadhaar address).

Note: The list of documents and eligibility criteria mentioned above is indicative. Lenders may request additional documents or proof during the processing stage, depending on your financial profile and the urgency of your request.

Fast-Tracking Loan Approval With Aadhaar e-KYC

The feature of linking your Aadhaar Card with your mobile number is enabled by the UIDAI (Unique Identification Authority of India). Ensure you do this before applying for an emergency loan. Your Aadhaar Card plays a key role in terms of ease of approval, and linking it will help you get your Personal Loan application approved quickly.

Process of Availing an Emergency Aadhaar Card Loan

By linking your Aadhaar Card to your loan application, you can enjoy a seamless and swift borrowing experience. Here's how to apply for an Emergency Loan on an Aadhaar card, and how you can expect the process to go:

• Finding a Lender - To avail of a loan with minimum documents, you need to find a reliable lender or financial institution that offers this service. Major NBFCs leverage the Aadhaar Card's unique identification features to expedite the approval process.

• Online Application Process - Visit the lender’s official website and begin the loan application. Enter key personal details such as your name, Aadhaar number, contact details, and the loan amount.

• Aadhaar Card Verification - To speed up the Personal Loan verification process, the lender will use Aadhaar-based e-KYC verification to authenticate your identity. This digital verification removes the need for extensive paperwork, enabling a hassle-free process.

• Documentation - Simply upload the necessary documents and fill out your loan application form.

• Loan Verification - The bank will now evaluate your application to determine if it can lend you the requested sum. After a quick evaluation, you will receive the terms for your loan.

• Repayment Terms - Carefully review the repayment schedule and monthly EMI amount to ensure you'll have an easy repayment process.

• Funds Transfer - Upon your acceptance of the loan offer, the approved loan amount is transferred directly to your registered bank account, usually within a few hours or the same day.

• Repayment - You now have the flexibility to repay the loan in affordable EMIs as per your selected tenure. Timely repayment also positively affects your credit history so ensure you manage payments well.

Features & Benefits Of an Emergency Loan on an Aadhaar Card

Obtaining an Emergency Loan on your Aadhaar Card comes with several convenient features and benefits, such as:

• Instant Approval: The approval process is quick, and funds are disbursed into your account shortly after verification, ideal for urgent financial needs.

• Minimal Documentation: With your Aadhaar Card as a primary ID, the need for extensive paperwork is eliminated, making the process smoother and faster.

• No Collateral Required: These are unsecured loans, so you don’t need to provide any collateral or assets as security.

• Flexible Loan Amounts: You can choose the amount you wish to borrow based on your requirements and repayment capacity.

• Convenient Repayment Options: Flexible repayment tenures and user-friendly EMI plans make it easier to manage your monthly outflow.

• Easy Online Application: The entire loan application process is digital, allowing you to apply quickly and securely from your home or office.

• No Usage Restrictions: There are no restrictions on how you use the loan amount; it can be used for medical emergencies, education, travel, or any other personal need.

Things to Keep in Mind When Applying for an Emergency Loan

When applying for an Emergency Loan, it’s important to understand a few key points that can affect your loan experience and financial health:

• Missing Repayments Can Impact Your Credit Score: Failing to repay your EMIs on time may negatively impact your CIBIL score, making it harder to get loans in the future. Always borrow within your repayment capacity to avoid missed payments or defaults.

• Flexible Repayment Tenure, Not Necessarily Short: While some emergency loans may come with shorter tenures, some also offer flexible repayment options. This allows you to select a term that fits your budget and repayment ability.

• Your Credit Score Can Influence Loan Terms: A higher credit score not only increases your chances of approval but may also get you better interest rates and favourable terms. If your score is low, consider improving it before applying.

• Collateral May or May Not Be Required: Most Aadhaar card loans are unsecured, which means no collateral is required. However, some lenders may offer secured options with different terms, so read the offer carefully. This would be beneficial if you have a low credit score since the collateral helps you get approvals.

• There May Be a Hard Credit Inquiry: When you apply for a loan, a hard inquiry may be made on your credit report. One or two inquiries may have minimal impact, but multiple applications in a short time can lower your score.

• Additional Fees Could Apply: Always check for processing fees or origination charges as part of the loan application process, which may reduce the amount you actually receive. Read the fine print to understand all charges before accepting the loan offer.

To Conclude

Getting an Emergency Loan on an Aadhaar card provides instant funds as a quick and convenient solution for immediate financial needs. With an easy application process, minimal documentation, and fast disbursal, it offers a hassle-free borrowing experience.

If you need funds for your medical expenses or any other purpose, consider applying for an Emergency Loan offered by NBFCs like Poonawalla Fincorp at competitive interest rates and no hidden charges.

Frequently Asked Questions

What documents are needed for an emergency loan on an Aadhaar Card?

Aside from your Aadhaar card, you may need additional documents like recent salary slips, bank statements, and employment proof.

How long does it take to get a Personal Loan with an Aadhaar Card?

The processing time for a Personal Loan with an Aadhaar card is typically within 24 hours after document verification. This quick turnaround is possible due to e-KYC, which streamlines the identity verification process and speeds up loan disbursal.

What types of Personal Loans can I apply for using my Aadhaar Card?

You can apply for various Personal Loans using your Aadhaar card, including travel, wedding, medical, and education loans. The Aadhaar card simplifies the verification process, making loan approvals quicker and reducing the need for extensive paperwork.

Can I get an Instant Loan on my Aadhaar Card?

Yes, you can get an instant loan using your Aadhaar card as an identification document. Many financial lenders in India accept the Aadhaar card as valid proof of identity for loan applications, confirming its role as a key identity proof. This further enables instant loan approval.

How much loan can I get on my Aadhaar Card?

The loan amount you can get on your Aadhaar card depends on various factors. These can include your income, credit history, repayment capacity, and the policies of the lending institution. The specific loan amount would be determined by the financial institution based on its evaluation of your eligibility criteria.