No Hassle, No Collateral: Your Guide to a ₹10,000 Loan with an Aadhaar Card

Are you wondering if getting a loan with an Aadhaar card is possible? The answer is yes. A loan of ₹10,000 can be availed with an Aadhaar card. More than an identity document, the Aadhaar card provides access to many financial services without any challenges. In this article, we will enumerate what a ₹10,000 loan with an Aadhaar card is, how to apply, what the qualifying requirements are, and more. Continue reading for insight into how this innovative financial solution can assist those in need, even amidst challenging credit circumstances.

How to Apply for a ₹10,000 Loan with an Aadhaar Card Online?

Online platforms now make applying for a ₹10,000 loan easier by using your Aadhaar card. Here's an easy-to-follow guide to understand the application procedure.

1. Research and Choose a Lender

   Begin by researching reputable institutions or online lenders offering ₹10,000 loans with Aadhaar cards.

   Consider the following factors:

   1. Compare interest rates among lenders.

   2. Know loan terms, repayment periods, and fees.

   3. Assess reliability and service through borrower reviews.

2. Visit the Lender's platform

   After selecting a lender, navigate to their official website or download their app. In the loan section, look for the specific option designed for applying for a personal loan. Familiarise yourself with the interface and proceed ahead.

3. Create an Account

   Some lenders ask you to create an account on their site. Provide the required information, such as your email address and phone number, and create a strong password. If you have already made an account, log in with your credentials.

4. Fill in Personal Details

   Complete the loan application form with precise details from your Aadhaar card. Include crucial information such as Aadhaar card number, name, age, address, and contact number.

5. Enter Income and Employment Information

   Provide information about your monthly income and current job situation. Some lenders can request more financial information, so be prepared to provide the relevant information.

6. Select Loan Amount and Tenure

   Choose the loan amount of ₹10,000 and select the repayment period that aligns with your financial capacity. Ensure the tenure is feasible for your repayment capabilities.

7. Upload Required Documents

   Scan or take clear photos of the required documents, including your Aadhaar card, PAN card, proof of address, income proof (such as salary slips or bank statements), and documents specified by the lender.

8. Submit the Application Form

   Verify the details and legibility of all uploaded documents and submit the application form.

9. Verification and Approval

   The lender will initiate the verification process based on the information provided. If additional details are required, they may contact you for further details. Upon successful verification, the ₹10,000 loan amount will be approved.

Characteristics and Advantages of a ₹10,000 Loan with an Aadhaar Card

A ₹10,000 loan with an Aadhaar card provides several features and benefits for emergency financing requirements. Here are some crucial characteristics and advantages:

1. Transparent Terms and Conditions

   Lenders prioritise clarity by presenting borrowers with transparent terms, covering loan agreements, interest rates, and associated charges. It fosters trust and ensures borrowers make informed financial decisions.

2. Emergency Fund Accessibility

   ₹10,000 Aadhaar card loans provide a reliable solution for unforeseen expenses or crises. Quick disbursement and easy accessibility make these loans practical during urgent financial situations and offer timely support.

3. Flexible Utilisation

   Borrowers enjoy versatile usage of the ₹10,000 loan without rigid restrictions. Whether for debt reduction, wedding expenses, travel, education, or home upgrades, the loan provides flexibility to address diverse financial needs.

4. Credit Score Improvement

   Timely repayment positively impacts the borrower's credit score. Establishing a track record of punctual payments and diversifying credit types can significantly enhance the borrower's overall credit profile, unlocking better financial opportunities.

5. Expedited Approvals

   Aadhaar card loans streamline the application process by requiring minimal documentation. The feature alleviates the burden on borrowers, eliminates the need for extensive paperwork, expedites the loan approval process, and provides a hassle-free experience.

Eligibility Criteria for ₹10,000 Aadhaar Card Loan

To be eligible for a ₹10,000 Aadhaar card loan, the following requirements must be met:

1. Indian Residency

   Only Indian residents are eligible for Aadhaar-based loans.

2. Age Requirements

   Applicants must be at least 21 years old, with an upper age limit of 65 years

3. Employment Status

   The applicant should be currently employed, or associated with a public/private company or an MNC.

4. Credit Score

   A minimum credit score of 650 or above is required.

5. Income Proof

   Only income transactions directly credited to the bank account are considered valid income proof.

Documents Required for a ₹10,000 Loan with an Aadhaar Card

To apply for a ₹10,000 loan with an Aadhaar card, you must submit the following documents:

Common Documents for All:

1. Submit a duly completed and signed loan application form accompanied by a passport-size photograph.

2. Provision of identity proof, such as Aadhaar Card, Voter ID, PAN Card, Driving License, etc.

3. Aadhaar Card, Voter ID, Driving License, Utility Bills, Passport, etc for address proof.

Additional Documents for Salaried Individuals:

1. Salary slips for the preceding 3 months.

2. Proof of Income Tax Return/ Form 16.

Additional Documents for Self-employed Individuals:

1. Income Tax Return, Profit & Loss account, balance sheet, and income computation for the last 2 years

2. Provision of Form 26 AS, Income Tax Challan/ TDS Certificate (Form 16A) for the declared income tax

EMI Calculation for a ₹10,000 Loan with an Aadhaar Card

Let's take an example where Rakesh took out a loan of ₹10,000 with an Aadhaar Card. The loan has an annual interest rate (R) of 7.2%, compounded monthly and the loan is to be repaid over 12 monthly instalments (N).

Here,

P = Principal amount of the loan (₹10,000)

R = Rate of interest per annum ([7.2/12/100] = 0.006)

N = Number of monthly instalments (12  months)

To manually calculate the EMI on a ₹10,000 Aadhaar card loan, you can use the formula:

E = P*r*(1+r)^n/((1+r)^n-1)

Example Calculation: For a ₹10,000 loan with an Aadhaar card at 7.2% monthly interest rate:

N is 12 months

R is 7.2% = 7.2/12/100 = 0.006

EMI = ₹10,000 * 0.006 * (1 + 0.006)^12 / ((1 + 0.006)12 – 1)

= INR 866

After evaluating this expression, you should get the monthly EMI amount of around ₹866 based on the given assumptions.

Conclusion

Getting a ₹10,000 loan with an Aadhaar Card is a great way to meet your urgent financial needs. The simple online application procedure, speedy financial distribution, and flexible EMI options make it an easy alternative for people needing immediate financial assistance. An Aadhaar card loan offers the ease of applying from the comfort of your own home and repaying in reasonable instalments. Say goodbye to complicated processes and experience the convenience of receiving quick funds using your Aadhaar card.