In recent years, getting a loan has become much easier in India, thanks to digital technology and Aadhaar. Gone are the days when you needed to submit a big bunch of documents or visit the bank multiple times. Now, with just your Aadhaar card, you can apply for a loan from the comfort of your home.
Let’s understand what Aadhaar-based loans are, how they work, and how you can apply for one without any confusion.
What is an Aadhaar-Based Loan?
An Aadhaar-based loan is a personal loan that you can get using your Aadhaar card as the main document for verification. It’s especially helpful for people who don’t have too many documents but still need quick financial help.
Your Aadhaar card acts as both your identity proof and address proof. When linked with your mobile number and bank account, it becomes a powerful tool to get instant loans, especially small cash loans.
Why Are Aadhaar-Based Loans Popular?
There are several reasons why more and more people are choosing Aadhaar-based loans:
1. Minimal Documents
You don’t need to provide multiple proofs. Most lenders ask only for your Aadhaar card, PAN card, and sometimes salary slips or bank statements.
2. Quick Disbursement
As Aadhaar helps in e-KYC (online verification), lenders can process your application fast. Many platforms even offer instant loan approvals.
3. Apply from Anywhere
You can apply for an Aadhaar loan online using your phone or laptop. No need to visit a bank or NBFC office. Or you can easily apply for a loan through BigMudra, it is easy and you can choose and compare loans from various banks and NBFCs that fits your needs.
4. Safe and Transparent
With Aadhaar authentication and online platforms, the process is secure and transparent. You know your EMI, interest rate, and tenure clearly.
Who Can Get an Aadhaar-Based Loan?
Anyone who meets the following conditions can apply:
- Indian citizen
- Age: 21 to 60 years
- Regular monthly income
- Aadhaar linked with mobile number and bank account
- Basic credit score (varies by lender)
If you are a salaried employee, student, homemaker, or self-employed, you may be eligible depending on the lender’s rules.
Read More: Which Bank Has the Lowest Personal Loan Interest Rate in 2025?
Types of Loans You Can Get on Aadhaar Card
Here are some popular types of loans available on Aadhaar:
1. Personal Loan
This is the most common loan. It can be used for any purpose like education, wedding, travel, or emergency expenses.
2. Small Cash Loan on Aadhaar Card
These are short-term loans ranging from ₹2,000 to ₹50,000. Many lending apps offer such loans with quick approval.
3. PM Aadhar Card Loan
Under some government-linked schemes, people from rural or low-income groups may get small-ticket loans using Aadhaar. These may be provided through microfinance or NBFCs.
How to Apply for an Aadhaar Loan Online?
Follow these simple steps to apply for a loan on Aadhaar card online:
Step 1: Choose a Trusted Lender
Select a reliable bank, NBFC, or loan app. Make sure the platform is RBI-registered.
Step 2: Check Your Eligibility
Use the lender’s website or app to check if you’re eligible. Usually, this involves entering your income and Aadhaar details.
Step 3: Upload Documents
Upload your Aadhaar card, PAN card, and bank statements or salary slips (if needed).
Step 4: e-KYC Verification
The lender will verify your Aadhaar details through OTP sent to your Aadhaar-linked mobile number.
Step 5: Get Instant Approval
Once verified, you may get approval within minutes to a few hours.
Step 6: Receive Money
The money will be credited directly to your Aadhaar-linked bank account.
Fees and Charges For a Loan On Aadhaar Card
Get instant loan approval on your Aadhaar Card at competitive rates. Below is the table of fees and charges. However it can vary depending up on the lenders requirements:
| Charge Type | Details |
| Processing Fee | ₹500 to ₹2,000 or 1% to 3% of the loan amount |
| Interest Rate | 10% to 30% per annum (varies based on credit score and lender) |
| Loan Amount | ₹5,000 to ₹2,00,000 (depending on the lender and eligibility) |
| Tenure | 3 months to 24 months |
| Late Payment Fee | ₹100 to ₹500 or 2% to 4% per month on overdue EMI |
| Foreclosure Charges | 0% to 4% of the outstanding amount (some lenders allow free prepayment) |
| Documentation Charges | Usually Nil (since it’s a paperless Aadhaar-based loan) |
| Bounce Charges | ₹300 to ₹500 per bounced EMI |
| Convenience Fee | ₹100 to ₹500 (sometimes applicable for online processing) |
Documents Required For a Loan On Aadhaar Card
Below is the list of documents required while applying for a loan on Aadhaar card:
| Document Type | Details Required |
| Aadhaar Card | Must be linked with your mobile number and PAN; used for e-KYC verification. |
| PAN Card | Required for income verification and credit check. |
| Photograph | Recent passport-size photograph (may be needed for offline or NBFC loans). |
| Income Proof | Salary slips, bank statements, or ITR (for salaried/self-employed individuals). |
| Bank Account Details | Account number, IFSC code, and recent bank statement (for loan disbursal). |
| Address Proof | If Aadhaar doesn’t have an updated address, provide a utility bill or rental agreement. |
| Employment Proof | Offer letter, ID card, or appointment letter (for salaried applicants). |
Things to Remember Before Taking an Aadhaar Loan
Before you apply for an Aadhaar loan, keep these points in mind:
1. Interest Rate
Check the interest rate before signing up. Some small cash loans may charge higher interest.
2. Loan Tenure
Shorter tenure means higher EMIs. Choose a plan that suits your monthly budget.
3. Hidden Charges
Always read the terms and check for processing fees or penalties on late payments.
4. Repayment
Make sure you repay the loan on time. Defaulting may affect your credit score.
Is it Safe to Take a Loan Using an Aadhaar Card?
Yes, it is safe if you’re applying through a trusted lender or RBI-approved platform. Aadhaar verification is done through OTP, and your data stays protected.
Avoid shady apps or websites that promise “free loans” or ask for money upfront. Always check reviews, RBI registration, and data privacy terms.
Benefits of Aadhaar Card Loans
Here’s a quick list of benefits for you:
- Quick approval and disbursal
- No physical paperwork
- Available 24×7, even on holidays
- Suitable for small and big needs
- Simple application process
Final Thoughts
Getting a loan with your Aadhaar card is now easy and fast. Whether you need a small cash loan, emergency money, or funds for personal use, many platforms allow you to apply online using your Aadhaar.
But be smart. Always compare lenders, understand the terms, and choose a repayment plan you’re comfortable with.
With the right platform and timely repayment, Aadhaar-based loans can be a simple and safe solution for your financial needs.
FAQs
1. Can I get a loan if I have only an Aadhaar card?
Yes, many lenders offer loans with just an Aadhaar card and PAN card. Some may ask for income proof.
2. Is PM Aadhar Card Loan real?
There’s no official government scheme called PM Aadhar Card Loan. But some private lenders use this name to offer micro-loans.
3. Can I get a loan without a salary slip?
Yes, some platforms give small cash loans on Aadhaar card without salary slips, especially to self-employed or gig workers.
4. How much loan can I get?
It depends on your income and credit history. Usually, it ranges from ₹2,000 to ₹2,00,000.
