A Comprehensive Guide to Understanding Aadhaar Cards for Loan

Like your face depicts your individual identity as a human, one of your documents, an Aadhaar card, ascertains your existence as a citizen of India. Introduced in 2016, the Unique Identification Authority of India (UIDAI) enabled it to gather geographic and biometric details of Indian citizens to help them leverage various government schemes and services easily.

According to Statista reports, 39.2 million Aadhaar cards were generated solely in 2023, and 1.3 billion card holders have been verified to date. Since Aadhaar has become a key identification document, you can get its benefits for applying for loans, getting subsidies, opening a bank account, and much more.

In this blog, we have covered all the details you should know about Aadhaar and its benefits.

Breaking the Basics of Aadhaar Card

Aadhaar is a unique 12-digit identification number which UIDAI issues. It is designed for your quick verification process if you live in India, recognising your demographics (name, date of birth/age, address, EID- the enrolment number, barcode) and biometric data (photograph, iris scan, all ten fingerprints).

Once you are allotted Aadhaar details, they serve as proof of your identity throughout your life and don’t expire.

How Do You Apply for an Aadhaar Card?

If you want to apply for a home, education, or any loan, you must first generate your Aadhaar card information. Here is how you can apply for it:

Search for an Enrolment Centre
You can locate any enrolment centre nearby or visit the UIDAI website to find it online.
Fill in the Necessary Details
You get an application form that asks for all your basic details, including name, address, contact information, and more.
Submit the Documents
While filling in the details, you must also provide documents proving your identity. It may include a passport, voter ID, and utility bills.
Biometric Data Collection
At the enrolment centre, you need to make biometric data submissions like fingerprints, iris scanning, and photographs.
Collect Acknowledgement
After all the formalities, you get an acknowledgement slip that mentions the enrolment ID, which helps you track your application status.

After completing this process, you can download e-Aadhaar from the UIDAI website or receive it at your residence via postal mail.

Why Do You Need an Aadhaar Card?

The benefits of Aadhaar card information are not just confined to your identification but extend to offering the following benefits as well:

Government Subsidies
With your Aadhaar details, you can avail of subsidies on scholarships, pension schemes, edibles, and more.
Banking and Financing
If you link your online Aadhaar card with your bank, it simplifies the funds transfer to your account directly.
Income Tax Returns
Verifying ITR details can be cumbersome, but Aadhaar details can reduce the documentation needs, making the process hassle-free.

How Does Aadhaar Benefit You When You Apply for a Loan?

In times of survival and catering to your dreams, loans can bring financial freedom to your life. Now, you must be wondering how Aadhaar card details can support you in this financial landscape. Let’s have a look at the benefits here:

Smooth KYC Process
Know Your Customer (KYC) is a crucial process in financing for identity and address verification to get the services. Aadhaar details simplify this process through E-KYC, reducing the time, effort, and paperwork needed to process your loan. Moreover, your biometric and demographic data helps mitigate fraud risks.
Quick Loan Approvals
Online Aadhaar cards enable quick loan approvals. The digital verification process speeds up the loan approval process through hassle-free documentation. It adds to your convenience if you apply for personal or small business loans.
Wide Credit Accessibility
The Aadhaar card enables a vast segment of the population, including those with low CIBIL scores, to access financial services. Those living in rural areas without traditional identification forms or new-to-credit users can access banking and loan facilities with their online Aadhaar cards.

Simplifying Loan Application Hassles with Aadhaar

Aadhaar details have become an inevitable part of people in India that bridge the gap between people and essential government schemes. Not just that, it also holds major significance in the financial sector for easing loan applications.

Aadhaar simplifies KYC procedures, enables faster approvals, and increases access to credit. Even if you have a low CIBIL score, you can apply for different loans using it. Whether you are seeking to apply for a home, business, or personal loan, you can make the process smoother and more efficient with KreditBee on attractive terms.

To check your loan eligibility, download the KreditBee app now!

Frequently Asked Questions (FAQs)

Since Aadhaar has become a primary document you need in every sector, it increases the accuracy of your loan application. Moreover, the digital verification process also reduces the chances of any fraudulent activities.

Yes, you can apply for a loan with your Aadhaar card if your CIBIL score is low. The interest rates on loans may differ for different lenders. Do your research to choose a reliable lender to understand if it matches your criteria.

Usually, you can apply majorly for personal and small loans using Aadhaar, but the requirements may vary by lender. Before applying, ensure you check the lender’s criteria to avoid any difficulties later.

Yes, linking your Aadhaar card with your bank account is often an important step in the loan application process. It simplifies the documentation process by providing lenders with a secure and efficient way to verify your identity and financial information. This can lead to faster loan approval and disbursal, as it reduces the need for additional paperwork and manual verification.

Yes, only if you choose reliable digital lending platforms. Some platforms are completely online and offer loan application services 24*7, anywhere at any time. Always check their terms and conditions before applying for a loan.

AUTHOR

KreditBee As a market leader in the Fintech industry, we strive to bring you the best information to help you manage finances better. These blogs aim to make complicated monetary matters a whole lot simpler.