How to take a loan with Aadhar and PAN card

By admin | Mar 16, 2021

An instant personal loan will come to aid when you need extra funds in emergency situations. Be it medical expenses, home renovation, paying your child’s school fees or simply paying off your existing bills at the end of the month. A personal loan can help you with that and much more. It gives you the freedom to access extra funds and utilize them for your needs.

Banks and lending institutions have a set of prerequisites when you apply for a loan. You will need to provide proof of employment, proof of residence, PAN card, Aadhar card, etc. On the basis of the documents provided, the bank or lending institution will consider your application and process your loan. Once approved, you will receive your money directly to your bank account.

While banks do provide personal loans, they take several weeks to process your application. When you need money urgently, you can opt for an emergency loan app instead that will approve your loan instantly and disburse the promised amount in 24-48 hours or less.

When applying for a loan, stay prepared beforehand so that you get the loan amount without wasting any time. In order for you to do so, you will need to keep your PAN card, Aadhar card and other such documents ready.

Personal Loan on Aadhar card

The Aadhar card is an identification number that many Indians are familiar with. It was launched as an umbrella identification system by the Indian Government in 2010. The Aadhar card provides a unique 12 digit alphanumeric code to every Indian citizen. Aadhar is created using the person’s biometric fingerprint and iris scan. It serves as an individual’s proof of identity and is accepted by many institutions as an address proof as well. However, Aadhar cannot be used as proof of citizenship. Aadhar stores each user’s biometric data and serves to verify their identity and authenticity to prevent frauds. An Aadhar card is also used by many lending institutions to get permission for eKYC, without which you cannot mandate NACH or ENACH or your EMI payments.

Personal Loan with PAN card

Your Permanent Account Number (PAN) card is a 10 digit alphanumeric code that is assigned to every Indian. Your PAN acts as identification proof and is mainly used when conducting background checks by lending companies, making financial transactions, and filing income tax returns. Many banks and lending institutions will also ask you to provide the PAN number before they grant a loan or even to conduct transactions exceeding certain limits.

Applying for a loan with Aadhar and PAN card

Many lending institutions accept Aadhar card and PAN card as proof of identity. Besides that PAN card can also be used as proof of address and Aadhar to fulfil eKYC. To apply for a loan with Aadhar and PAN card, you can follow the steps below:

  • Visit the loan app or website 
  • Enter your personal details and loan requirements
  • Your loan amount will be approved in-principle 
  • Upload Aadhar card, PAN card and other required documents 
  • Your documents will be verified and your loan will be disbursed within 24-48 hours.

The non-availability of either of these identification numbers will create complications in your loan application. You will find it increasingly cumbersome to conduct even basic transactions if you don’t have your Aadhaar or PAN card. In case you do not have a PAN or Aadhar it is strongly advised to apply for both these identification documents at the earliest.

Besides an Aadhar and PAN card, you should also keep copies of the following documents ready to fasten up your loan application process.

  • Proof of Identity: Passport/ Driver’s License/ PAN Card/ Voter’s ID/ Aadhaar Card 
  • Proof of Address: Recent Electricity Bill/ Telephone Bill/ Property Tax Receipt/ Voter’s ID Card/ Passport 
  • Income Proof: Salary slips or Income Tax Returns and Bank Statements

Also, be careful when filling out the loan application and give correct personal details. Every lending institution will have a verification round during which they thoroughly check if the data that you’ve provided matches with the documents you’ve uploaded. In case there is a mismatch, there’s a high chance that your loan application will be rejected and you will not receive your money in time. Any discrepancies will also have a negative impact on your credit score.

Once your loan application is approved and you pass all the background checks, the loan amount will be disbursed to your bank account. Personal loans are a better option during emergencies because they allow you to opt for flexible loan tenure and repayment options and also offer competitive interest rates.

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