Impact of Aadhar Card on Personal Loan

When there was no concept of Aadhar, loan seekers invested a lot of time and efforts in collecting multiple documents for address and identity proof. There was a time when having a lot of physical documents created confusion in verifying personal details of the borrowers. It often led to differences and delay in an instant loan approval. Hence, it became crucial to introduce a unique identification document for Indian citizens that gives complete clarity about identity and address proof. That’s how Aadhar Card was introduced in 2010; it is a useful document for both lenders and borrowers dealing with a personal loan.

The impact of Aadhar card has reduced the time taken for personal loan approval. It is one of the mandatory documents required for loan application. With paperless documentation technique, Aadhar card soft copy is to be uploaded on the instant loan app or credit portal for paperless document verification. So, the arrival of Aadhar card is indeed a boon that enables different sectors of the society to apply for a personal loanwith great ease.

Earlier, the scenario was time-consuming, where borrowers carried loads of documents, waited in the queue and further anticipated loan approval for a long time. With the launch of the Aadhar card, many people find it easy to apply for loans online. The process has become hassle-free as one document serves as a proof for identity, address, age and citizenship.