Aadhar Card Loan in India

Aadhar Card Loan

The inflation rate in India was under control until 2014. However, since then, the price level in the Indian economy has been rising at the fastest rate. In October 2020, as per the Consumer Price Index (CPI), the inflation rate was above 7.5%, which is the maximum since 2014. Owing to the increasing prices, the cost of living in India has significantly increased.

Hence, financing essential expenses, such as medical emergencies, children’s education, and weddings, have become a challenge for most individuals in India. To combat this issue and fulfil their financial requirements, they are now opting for financial products, such as an Aadhaar card loan.

What Is An Aadhaar Card Loan?

A loan against Aadhaar card is a variant of an unsecured loan and is similar to a personal loan. However, it can be availed from a financial institution by just submitting an Aadhaar card as the main KYC document. Since this document contains the biometric details of an individual, banks have now started the e-KYC process, which has simplified the verification process of a personal loan on Aadhaar card.

Nevertheless, you must be familiar with the Aadhar card loan details before deciding to apply for such form of credit.

What Are The Eligibility Criteria For An Aadhaar Card Loan?

Before contacting a financial institution to apply for a loan on Aadhaar card, you must check whether you are eligible for the same. Here are the requirements:

  • Nationality: An applicant must be a citizen as well as a resident of India.
  • Credit Score: Applicants must possess a credit score of at least 750.
  • Stable Income: Only salaried and self-employed individuals can apply.
  • Age: All applicants must be between the age of 21 and 60 years.

Individuals fulfilling the eligibility criteria need to keep the following documents handy to avail an immediate loan against Aadhaar card:

  • Income proof documents such as latest salary slips, bank account statements of the last 6 months and Income Tax Returns of the past two years (for self-employed individuals)
  • Aadhaar card
  • PAN card

The documentation process of one financial institution may be slightly different than that of another.

Owing to the rigid eligibility criteria and lengthy documentation process, availing an emergency loan on Aadhaar card becomes a challenge for most individuals. If you are struggling to meet the eligibility criteria or do not possess the necessary documents, alternative credit options, like a gold loan, can bail you out immediately.

How Can A Gold Loan Help?

Unlike a collateral-free personal loan, a gold loan is a secured loan that you can avail from a lender by pledging your gold ornaments. However, it’s essential to note that the purity level of the gold must be between 18 to 22 carats. This form of financial assistance comes without any end-use restriction. Hence, it is now gradually becoming a preferred option for many business owners as well.

However, when choosing a gold loan provider, individuals must make sure that they are getting the best facilities and a hassle-free experience. Rupeek has garnered enormous popularity for providing the most efficient and cost-effective gold loan solutions. Our wide range of features and best-in-class customer service has made us one the leading gold-backed personal loan providers in India.

Why Choose Rupeek Gold Loan Over An Aadhaar Card Loan?

Individuals who choose to avail a gold loan from us are entitled to the following benefits:

  • Doorstep Loan: Once you place a request with us, our loan manager will arrive at your location within 30 minutes to complete KYC verification and the gold valuation process.
  • Minimal Documentation: Individuals can avail a gold-backed Aadhaar card loan without salary documents; only KYC documents are required.
  • Flexible Payments: We have flexible repayment options. You can choose to repay your gold loan in easy monthly instalments. Or, you can choose to pay the entire amount at the end of the tenure or as per your convenience.
  • Fast Loan Disbursal: Once our loan manager completes all the mandatory formalities, the sanctioned loan amount is transferred instantly into your bank account.
  • Cheapest Interest Rates: With us, you can avail a gold loan by paying the lowest interest rates, starting at 0.49% p.m. However, it’s imperative to note that our interest rates are subject to change based upon your location and the scheme you wish to avail.
  • Zero End-use Limitations: Similar to an Aadhaar card loan, our gold loan comes without end-use limitations. You can avail such form of a credit to finance a wide range of expenses. You can even utilise the amount to start your own business.
  • Relaxed Eligibility Criteria: Contrary to an instant cash loan on Aadhaar, our eligibility criteria are much more lenient. We do not strictly check past credit records when sanctioning a loan. Hence, one can apply for a gold loan even with a low CIBIL score. Moreover, individuals above the age of 18 can avail our services.
  • Credit Line Against Gold: Besides a regular gold loan, we offer a gold loan overdraft facility known as Rupeek Quick, which one can avail to fund various expenses. You can withdraw cash into your account as per your convenience from a pre-set credit limit and pay interest only on the amount you utilise.

In case you are unclear concerning the differences between a conventional Aadhaar card loan and our gold loan, read along.

What Are The Differences Between An Aadhaar Card Loan and Gold Loan?

Given below is a tabular representation of the differences between a loan against other card and Rupeek’s gold loan:

Point of Difference

Aadhaar Card Loan

Rupeek’s Gold Loan

Type of loan

It is an unsecured loan; one does not need to keep collateral.

It is a secured loan; the loan amount is sanctioned to the borrower against the pledged gold. 

Disbursal time

The disbursal time of an Aadhaar and PAN card loan varies from one financial institution to another. Usually, it takes anywhere between 1-7 days.

The loan amount is transferred into your bank account immediately after the KYC, and our authorised loan manager completes gold loan valuation process.

Interest rate

Aadhaar card loan interest rate depends upon the income and credit score of the applicant. An individual with a high credit score has to pay a low interest rate and vice versa.

Our gold loan interest rates do not depend upon an applicant’s income or credit score. Depending on the scheme you choose, it can be as low as 0.49% per month.

Credit score requirement

You need a credit score above 750 to avail an Aadhaar card loan from a financial institution.

Your credit score is not taken into account when availing a gold loan from us.

Loan amount

The maximum loan amount that one can avail depends upon the financial institution. However, banks and NBFCs usually sanction up to Rs. 50 lakhs.

The maximum loan amount that you can avail from us is Rs. 1.5 crores.

Flexibility of repayments

The repayment terms are not as flexible as that of a gold loan.

As an alternative to paying the loan amount in monthly EMIs, you can choose to pay the entire payable amount at your terms during the tenure.

Loan tenure

The tenure of immediate loans against Aadhaar card can be anywhere between 1 to 5 years.

Our gold loan has a tenure of 6 months.

In recent years, our gold loan solutions have garnered enormous popularity in India. The wide range of benefits has been vital in helping individuals to fulfil their financial requirements with ease. Apply for a gold-backed Aadhaar card loan via our app and satisfy all your financial requirements without any hassle.

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Benefits of Gold Loan over Aadhar Card Loan.
  • <1 lakh
  • 2 lakh
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  • 5 lakh
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  • 20 lakh
Comparision Parameters Aadhar Card Loan Gold Loan
Interest Rate 2.39% 0.49%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
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Frequently asked questions

  1. How can I calculate the monthly EMIs for an Aadhaar card loan?

Financial institutions provide Aadhar card loan calculator that can be found online. One can use this uniquely designed tool to calculate their monthly EMIs. Enter the loan amount, interest rate, and tenure, and the monthly EMI will be displayed on your screen.

  1. Can a personal loan against Aadhaar card affect my credit score?

It only affects your credit score if you delay the loan repayment or miss out on EMIs. Timely repayments, on the other hand, improve your score.

  1. Can I apply for a gold loan if I’ve already availed a personal loan against Aadhaar card?

Yes, you can avail a gold loan with us even if you’ve already availed an Aadhaar card loan.

  1. Is GST applicable on loan against Aadhaar card?

A GST of 18% is imposed on the processing fees of a loan on Aadhaar card. However, GST is not levied on monthly EMI payments.

  1. Can I pledge all kinds of gold items?

No, our lending partners only accept gold ornaments with a purity level of at least 18 carats. Items such as coins and bars are not accepted as of yet.

  1. Can I partially release my gold ornaments?

Yes, it is possible to do a part release, but please keep in mind that the weight of individual part released gold ornaments must be 10 grams or above.

  1. What are the precautions taken by Rupeek to keep my gold safe?

Rupeek has partnered with some of the leading lending institutions of India to ensure the safety of your gold ornaments. After completing all formalities, your gold is transported to an authorised bank branch in a secured bag with a GPS-tracker. Upon arrival at the facility, the ornaments are stored in a locker under bank-grade security. Plus, we offer 100% door-to-door insurance policy.

  1. Can I know how much gold to pledge to avail a gold-backed Aadhaar card loan?

Yes, by using our gold loan calculator, you can compute the required quantity of gold with ease. Enter the desired loan amount, select the purity level of your gold, and the required quantity of gold (in grams) will be displayed on your screen.

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