Aadhaar Card Loan: You’ve probably come across ads for “instant loans based on Aadhaar” numerous times. But is it really true that possessing an Aadhaar card makes it easy to secure a loan? The answer is no. Aadhaar primarily assists with identity verification and accelerates the KYC process. That’s all it does. A bank or NBFC will only approve your loan once the entire loan process is finalized.
Only agree to loan offers if absolutely necessary
Banks and NBFCs assess a customer’s age, income, and ability to repay. If someone proposes a loan solely based on your Aadhaar card, exercise caution. Experts recommend that you should only consider taking a loan when you genuinely need it. If a bank or NBFC is offering you a loan without much hassle, it’s wise to refrain from accepting it unless you have a definite need.
Consider some questions before borrowing money
Experts suggest that you should reflect on a few questions before taking out a loan. The first one is, how soon can I repay the loan? This is important because a shorter loan term means you’ll pay less interest. Accepting a loan offer based only on the EMI could be detrimental. Longer loan terms may reduce the EMI, but they also lead to increased interest costs.
Be particularly cautious when borrowing through an app
It’s perfectly fine to take a loan exclusively from a bank or NBFC. If you’re applying for a loan via an app, ensure that it is registered with the RBI. The RBI keeps a list of approved digital lending applications. You can find information about NBFCs in this directory. Additionally, be careful when using loan apps. If a loan app requests access to your contacts, photos, or call logs, proceed with caution.
The bank also reviews the customer’s credit history
Banks or NBFCs utilize your Aadhaar for digital KYC. You can verify your identity using an OTP or complete KYC through a quick video call. Make sure to have your PAN ready for this process. Banks or NBFCs will also check the credit history of the customer.
They check the customer’s credit history using their PAN. Before accepting a loan offer, it’s important to understand the interest rate, processing fees, late fees, and prepayment charges. A loan of Rs. 20,000 becomes Rs. 25,000 after interest and other fees are paid. The loan amount should be credited directly to your account.
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Sweta Mitra
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...
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