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.
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.
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:
Individuals fulfilling the eligibility criteria need to keep the following documents handy to avail an immediate loan against Aadhaar 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.
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.
Individuals who choose to avail a gold loan from us are entitled to the following benefits:
In case you are unclear concerning the differences between a conventional Aadhaar card loan and our gold loan, read along.
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.
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.
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.
Yes, you can avail a gold loan with us even if you’ve already availed an Aadhaar card loan.
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.
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.
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.
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.
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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