Personal Loan on Aadhaar Card: Eligibility and Benefits

As of August, 2025, 53 crore loans and more had been issued under such government schemes that leverage Aadhaar at their central role. Indian citizens can also avail instant loans on the basis of their Aadhaar card, which can be used as a means to get access to quick funds.

With minimal documentation, fast processing, and stress-free financing, Aadhaar card can be utilised for funds in times of financial emergencies. Personal loans based on Aadhar cards are known for their ease and hassle-free experience. Individuals seeking quick financing tools consider these loans. However, it is essential to understand their features, benefits, eligibility and compare across top loan providers.

Key Features and Benefits of Instant Aadhaar-based Loan

The key features and benefits of instant Aadhaar-based loans include:

• Quick e-KYC Verification: The e-KYC process is straightforward, easy and quick as it utilises Aadhar-linked biometrics and one time passwords for verification. This ensures an effortless identity confirmation, speeding up instant loan approvals.
• Minimal Documentation: The documents required for a personal loan based on Aadhar are minimal. Aadhaar serves as identity and address proof, significantly mitigating the need for additional paperwork, making loan application smooth and hassle-free.
• Unsecured Loans: In most cases, no collateral is needed against the loan application, making it accessible across different categories of borrowers. 
• Flexible Loan Amounts: Loans as small as ₹10,000 to as big as ₹50 Lakhs can be borrowed through Aadhar cards.
• Quick disbursals: These loans are processed and disbursed quickly. 
• Online applications: The loans are applicable online through convenient, safe and digitalised platforms. 

Eligibility process

While the process of applying for a personal loan based on Aadhar card is simple, the eligibility criteria needs to be checked beforehand:

• Valid Aadhaar Card: The main identity proof and basis of this loan is Aadhar card. A valid Aadhaar card is mandatory for the loan application.
• Age Requirement: This loan is generally available for individuals in the age bracket of 18-60 years. 
• Credit Score: Credit scores of, typically, 600 or more are considered eligible for this loan.
• Steady Income: Applicants must have a proof of steady income such as employment or self-employment details.
• Bank Account Linkage: Ideally, the applicant’s Aadhar must be linked to an active bank account. 
• Supporting Documents: A range of other supportive documents may be required. These can include: PAN card, salary slips, bank statements, etc. 

Read: Your Guide to Getting an Instant Loan for Salaried Professionals

How to Apply for a Personal Loan using Aadhaar Card?

The following steps guide one to apply for a personal loan on Aadhaar card:

1. Choose a Lending Platform: The first step requires research and selection of a suitable lending platform. Financial marketplaces like Bajaj Markets offer a wide range of personal loans through different lenders. 
2. Start the Application: Visit the platform’s website or mobile app and locate the personal loan application section. Personal information such as name, contact information, requested loan amount, and tenure preference are required.
3. Upload Aadhaar and Documents: A scanned copy of Aadhaar card is essential to be uploaded. Alongside, other documents such as bank statements, utility bills, etc may be needed.
4. Complete Aadhaar e-KYC: One can authenticate the lender to verify Aadhaar via OTP or biometric verification linked with the bank account.
5. Submit Application: Carefully review and submit the final application. 
6. Approval Notification: The lender conducts a thorough background check and assessment before determining eligibility. If the applicant is eligible, approval is usually granted within hours. The lender may contact the borrower for any required clarifications.
7. Funds Disbursal: Upon approval, the sanctioned amount is directly transferred to the borrower’s bank account.
8. Repayment plan: The borrower can choose a repayment schedule that suits their financial capability and start EMI payments as per the agreed terms.

Conclusion

Personal loans against Aadhaar cards represents an ideal shift in India’s credit landscape, harmonising technology with financial inclusion. Aadhaar helps verify identity quickly and requires very little paperwork, making it easier and fairer for many people to get loans - especially those who faced problems with traditional lending methods. This new way of lending benefits a wide range of borrowers by giving them faster, simpler access to funds.

With flexible terms, attractive interest rates, and a vibrant marketplace of online lenders, Aadhaar-based personal loans enable quick and transparent access to funds for myriad needs. The journey of borrowers, from application to disbursal, embodies the future of seamless digital finance in India.