Getting a personal loan in India has become as easy as having a PAN Card and an Aadhar Card. Let us explore how you can apply for an instant personal loan in India in a matter of minutes, in today’s article.
What Is a Personal Loan?
Before we dive into the nitty gritty of applying for a personal loan with just your PAN Card and Aadhar Card, it is important that you understand the exact meaning of a personal loan.
In simple terms, a personal loan can be understood as a lending instrument through which you can borrow any amount of money between ₹10,000 all the way to ₹25 lakhs while enjoying low rates of interest, flexible repayment and most importantly instant disbursement.
The concept of a personal loan is not exactly new to India, however it has been gaining a significant amount of interest in the past few years mainly due to the insurgence of fintech startups who now specialize in rendering this service.
Before the wave of personal loans arrived in India, lending was mostly a tedious and taxing process with long waiting lines at the bank and other financial institutions. If you wanted to borrow money, you would have to fill lengthy application forms, submit them via the lending agent or visit the branch of the lender and have to wait for at least 10 to 15 days for the lender to review your lending application and subsequently approve it, if you met all the criteria.
But this was not the end of the process. If you wanted a loan from a bank, it was mandatory that you had hard copies of every important document, right from your latest bank statements, to your Aadhar Card and your PAN Card.
But over the past few years, with the insurgence of new age lenders, this scenario is slowly changing in India and for the better. Today, you can apply for any amount of personal loan with the tap of a finger and all you need is your eKYC documents.
But in order to get successfully approved, there are some steps which you need to follow. They are as mentioned below:
Choose a Lender of Your Choice
Presently there are numerous lenders in the market, all of whom specialize in giving out instant personal loans. But just because there are multiple lenders who specialize in this domain, this does not mean that you approach all of them and apply for a personal loan.
While you are choosing a lender for a personal loan, you need to make sure that you not only synergize with the lender in terms of their eligibility criteria but also on the specific needs you want to be fulfilled, such as instant disbursal, low rates of interest and a flexible repayment plan.
Once you choose the lender of your choice, the steps to apply for a personal loan are quite simple.
- Visit the official website of the lender or download their mobile application.
- Start the application process by entering your registered mobile number.
- In the next step, enter your first and last name, followed by your residential address and also your email address.
- Now comes the step for sharing your eKYC details i.e. your Aadhar Card and PAN Card. In this step, you need to share both these credentials with the lender.
- The lender will automatically verify all the details you have submitted, and you can conclude the application process by uploading your income certificate and latest bank statements.
Once all the steps are completed, the lender will review your application and if you have met all the requirements, your application will get approved.
- Getting a personal loan in India with just a PAN Card and an Aadhar Card have become so easy, mainly because of the fact that all major documents are now stored on the government cloud and are interlinked with each other.
Things to Remember
Although it is majorly true that the barrier to getting a personal loan in India has reduced significantly, there are some major aspects you need to remember while applying for a personal loan.
Share Accurate Details
A lot of times personal loan applications simply get rejected because borrowers tend to share incorrect information with the lender. While it can be argued upon, if this is done intentionally, the fact remains that if you want your loan application to be approved quickly you need to share correct information with your lender.
This means that you need to cross check both your eKYC credentials as well as your basic credentials before you submit the application. Along with this, you need to make sure that you have enough time on your hands when you are filling out the application, as a lack of time is often the root cause for sharing incorrect information.
Do Not Apply With Multiple Lenders
The next aspect you need to keep in mind while applying for a personal loan is to restrict yourself just to a single lender and not approach multiple ones at the same time. While this might appear to be a very small issue at first, the aftermath of this can be quite disastrous.
The reason behind this is simple, everytime you submit your application to a lender, they will access your credit report to determine whether you are creditworthy or not. Each of these enquiries are treated as hard enquiries by the credit bureau, and the greater their number, the greater will be the negative effect on your credit score.
Along with this, multiple applications also display the fact that you are desperate for a loan and lenders might treat this with suspicion as it increases the risk of you not being able to repay your loan on time.
Applying for a personal loan in India of 2020 has become as easy as having both your Aadhar Card and your PAN Card ready with you. Just follow the steps mentioned in this article and you will have the loan amount in your account in no time.