The financial services sector in India is growing fast, and there are many new lenders and loan apps in the market. However, it can be challenging to get a personal loan due to the increasing scrutiny of lenders and stricter lending norms. Most lenders insist on “compulsory” furnishing of Aadhaar ID at the time of loan application to be used for identification and verification purpose. What about those who do not possess an Aadhaar ID? Here is the good news – you can still apply for a loan without an Aadhaar ID. Read on to know more.

What is Aadhaar?

According to the Unique Identification Authority of India, Government of India website, Aadhaar number is a 12-digit random number issued by the UIDAI (”Authority”) to the residents of India after satisfying the verification process laid down by the Authority. Any individual, irrespective of age and gender, who is a resident of India, may voluntarily enroll to obtain an Aadhaar number. Person willing to enroll has to provide minimal demographic and biometric information during the enrolment process which is totally free of cost. An individual needs to enroll for Aadhaar only once and after de-duplication only one Aadhaar shall be generated, as the uniqueness is achieved through the process of demographic and biometric de-duplication.”

Is Aadhaar ID Compulsory for Personal Loans?

In short, the Aadhaar ID is just another primary document, valid for identification and address verification. It is mainly preferred by financial institutions and services for loans, ITR filings, to avail subsidies, applications for PAN cards and Passports, etc. It just makes the entire process of a loan application, verification and approval faster, smoother and more manageable. However, there is tremendous confusion around if it is a compulsory document for personal loans. There is no rule that personal loans cannot be availed if the borrower does not possess an Aadhaar ID. One can very well apply for a personal loan by using the Aadhaar ID as a supporting document along with other required documents. Or furnish any other ID issued by the Government of India like a Passport, Voter ID, PAN card or Driving License as a supporting document should you not possess the Aadhaar ID.

Personal Loan Eligibility Criteria

In the light of this information, the eligibility criteria for personal loans on online loan apps are as follows,

  • Must be an Indian citizen, between the age of 18 years and 60 years
  • Must have a decent credit score of 750 and above

Most loan apps allow you to check your eligibility by filling in your basic details in an online form on their website/app. Once you fulfill the terms and conditions and get a credit line, you can select a loan of your choice, upload your KYC documents and get instant approval.

Documents Required for Online Personal Loan Application

  • Duly filled out an online application with a clear photograph of the applicant.
  • Legitimate KYC documents
  • Identity Proof: Driving License, Voter ID, PAN card, Aadhaar ID, Passport or any Govt. of India issued ID
  • Address Proof: Passport, Aadhaar ID, Bank Passbook, Utility Bills like electricity bills.
  • Income Proof: ITR Returns and Monthly Salary Statements
  • Additional document as mandated by the lender.

Most lenders today consider one or more of the above as basic eligibility criteria for loan application purposes. So without any worry, feel free to explore personal loans on online loan apps even if you do not possess an Aadhaar ID.

Anil Sumra

Anil Sumra is a Digital Marketing Expert with more than 10 years of experience. He loves to write on various financial topics online to create financial awareness. He holds a bachelor’s degree in Finance & Management.

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