Most people are unaware of the fact that financial emergencies don’t give you time for preparation. You will be enjoying your life like any other day and urgent cash need burdens you all of a sudden. Situations like these demand immediate funds. Be it an urgent cash need to meet medical bills, shortage of funds during marriage, or a sudden travel plan. In any of these cases, you cannot wait to collect funds from multiple sources, nor you could tolerate the formalities required to obtain a loan from a bank. A small cash loan on Aadhar card can prove to be a real help in such cases.
What is Small Cash Loan on Aadhar Card
As the name suggests, a small cash loan on Aadhar card is a type of unsecured loan which can be obtained easily on a valid Aadhar card. This should not be confused with a personal loan because a personal loan cannot be approved only on Aadhar card.
The loan amount in a small cash loan generally varies from between Rs 10,000 to Rs 1,00,000, unlike a personal loan, which can be of up to Rs 50,00,000 as well. Furthermore, the interest charged by lenders on a small cash loan depends upon several factors like the borrower’s credit score, borrowing history, etc. The interest rate is usually between 11-25 percent depending upon the lender.
A small cash loan on Aadhar card is generally required when the need for funds is quite urgent and the requirement is also small. You can click here for small cash loan on Aadhar card but before doing that, remember that although a cash loan can be sanctioned on Aadhar card, the eligibility criteria and other documents required can vary from lender to lender.
Eligibility criteria for a small cash loan vary from lender to lender.
Standard Eligibility for Small Cash Loan on Aadhar Card
The eligibility criteria to obtain a small cash loan on Aadhar card is not as strict as that of other loans. Different lenders demand different eligibility fulfillment from the applicants. This being said, one should meet some minimum criteria, which is standard across the industry.
- Age limit: The loan applicant must be between 21-58 years of age
- Income: The applicant must have a monthly income of at least Rs 15,000
- Residence: The applicant must be a resident of India
These are the most basic requirements that one needs to meet to obtain a small cash loan on Aadhar card. Although some lenders do not ask you to produce any document to approve the loan, you should keep some necessary documents ready to ensure that the loan gets approved as quickly as possible. We will learn the same in the next section.
Documents Needed for Small Cash Loan on Aadhar Card
The documentation required to get a cash loan approved on Aadhar card is mostly to confirm your identity and your loan repayment capacity. You may require to furnish these documents to the lender for processing your loan application:
- Aadhar Card: As obvious as it is, the Aadhar card is the most important document that you need to have while applying for a small cash loan. Aadhar card helps the lender to complete the KYC process easily and verify yourself to proceed further with your loan application. Also, furnishing a valid Aadhar card eliminates the need to produce any other document like PAN card, Voter ID card, etc for identity verification. Moreover, you can also complete the KYC verification online, as some lenders also provide the e-KYC feature to their customers.
- Bank statement for income proof: The amount of cash loan that can be approved depends on your monthly income. Some lenders do not ask for any income proof but you should have these documents with you in case you need to furnish the same if needed. In general, most lenders who ask for income proof, require 3 months of payslip/bank statement to verify your monthly income.
A small cash loan on Aadhar card can come in handy when there is an urgent cash need and you cannot afford to waste your time in completing loan formalities. The best part about such loans is that they can also be availed online and the process, from filling in the required details to loan approval is entirely digital. You just need to enter a few details and enter the loan amount needed. You can also select the amortization period at your convenience. The lender, after verifying your details and checking your eligibility will approve the loan and transfer the sanctioned amount right into your bank account. You can use the disbursed amount immediately and fulfill your urgent cash need.
It is also recommended that you should compare offers from all the lenders before applying for the loan. Decide your loan requirement, plan your repayment schedule, and choose the best lender out there in the market who offers a completely hassle-free loan application process and provided you with the best interest rate.