8 Important Factors to Consider Before Applying for a Personal Loan 

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8 Important Factors to Consider Before Applying for a Personal Loan 

Personal loans offer immediate funding for emergencies or unexpected cash requirements. Access to this facility, however, requires you to submit a few documents. Thankfully, these requirements are minimal and straightforward. 

In fact, you can apply for some personal loans with just your Aadhaar card. Loan provisions like these are easy to avail because you can get approval with minimal paperwork. Bajaj Finserv Personal Loan, Mahindra Finance Personal Loan, or IIFL Personal Loan are some of the top offerings you can opt for that offer this benefit. 

However, minimal and straightforward document requirements are not the only factors you must consider. You need to consider a few other factors to choose the right lender and have a seamless borrowing and repayment experience.

To know about these factors, the steps to apply for a personal loan with an Aadhaar card and more, read on.

8 Factors to Consider Before Applying for a Personal Loan with an Aadhaar Card

Credibility of the NBFC

Considering the finances at stake, you should check the lender’s credibility before applying for an Aadhar card Loan. Loan offers like these are usually offered by reputed lenders, but you still need to check their credibility. This means assessing the offering across several parameters. 

One of these is checking the experience and reviews of existing and past customers. You should also check your years of experience to ensure that it is a lender that can help you borrow easily. 

Further, you should look at transparency regarding figures, including the charges. This will enable you to have a seamless repayment experience and eliminate the risk of unexpected costs.

Reliable lenders also maintain frequent communication throughout the loan process. With thorough research on your lenders for loans with an Aadhaar card, you can avoid unnecessary charges and potential scammers. 

Maximum Loan Amount 

Assessing the maximum loan amount offered is crucial because it helps ensure you can get the required funding easily. Lenders providing a personal loan with an Aadhaar card have different caps on the amount you can borrow.

Choosing a lender that offers the maximum amount can enable you to get high-value funding quickly. Note that the personal loan amount depends on your eligibility and creditworthiness. 

To get a higher amount on your loan with an Aadhar card, you must maintain a good score and meet all requirements. 

Interest Rates Offered 

NBFCs or other financial aggregators calculate your interest rates based on various factors. However, they generally have a range within which your interest rate will be. Your interest rate determines your borrowing costs. 

A lower interest rate means a lower interest payout and vice-versa. As such, you must choose a lender offering the best deal. You can increase your chances of securing a lower interest rate by improving your credit score and eligibility. 

Maximum Tenure 

Tenure is the duration over which you will repay your loan with interest. The advantage of getting a personal loan with an Aadhaar card, especially from NBFC, is that you get flexibility in choosing your tenure. 

For example, with IIFL Personal Loan, you can get 42 months, and 96 months with Bajaj Finserv. Using the EMI calculator, you can assess which tenure would give you the desired instalment amount matching your budget requirements. This way, you can research and compare various options to identify a lender offering favourable loan terms. 

Eligibility Requirements

Eligibility criteria are initial checks set by lenders, and these vary across each. Although these requirements are generally simple, some lenders may have stringent criteria. These can make it challenging to get approval for your loan with an Aadhaar card. 

On the contrary, some lenders, including NBFCs, have relaxed terms, enabling you to get hassle-free access. Some typical requirements are with respect to your age, income, and credit score. Remember that, to apply for a loan with minimal documents, you must have a valid Aadhaar card. It is a key aspect of the KYC process. 

Repayment Options

Lenders offer a personal loan with an Aadhaar card with flexible repayment options. In such cases, being careful and diligent is crucial because the options may vary for lenders. Moreover, your repayment plan affects how comfortably you can repay the funds. 

Some lenders offer a flexi loan method, wherein you can reduce your EMI amount by focusing on interest and principal turn by turn. Choosing the most feasible options ensures you do not strain your finances at any point.

Estimated Turnaround Time

Turnaround time refers to the complete time taken for a loan to process, from your application to the disbursement by the lender. When applying for a loan with an Aadhar card, choose a lender offering quick approval. 

Options like IIFL Personal Loan and Bajaj Finserv Personal Loan come with quick turnaround time, enabling you to get immediate access to funds. This becomes especially beneficial when you need funds to cover emergency expenses. 

Additional Changes

Banks and NBFCs charge a small fee for processing your loan application. This loan fee covers the fees of the agent helping in processing the loan. The processing charges vary across lenders and depend on the loan amount you get. 

For example, if a lender is charging a 1% processing fee and you get approved for a loan of ₹5 Lakhs, the processing fee will amount to ₹5,000. In addition, there may be other charges that the lender may levy as well. 

For example, you must pay a late penalty charge if you are late on a payment. On the other hand, if you wish to close the personal account before the end of your tenure, foreclosure charges will apply. 

All of these get added to the borrowing cost of your personal loan, and can’t be overlooked. Choose a lender with transparent and minimum charges to keep your borrowing cost manageable.

Steps to Apply for an Aadhaar Card Loan 

Applying for a personal loan with an Aadhaar card is easy, quick, and simple. Here are the steps you need to follow: 

  • Step 1: Visit the lender or NBFC’s website of your choice
  • Step 2: Fill in your details and loan amount
  • Step 3: Enter your 12-digit UID number (if required) and other details
  • Step 4: Upload other required documents, if any 
  • Step 5: Recheck information and submit your application

When you apply for a personal loan with an Aadhar card, the lender may require a few additional documents. This depends on the provider you choose. 

However, the additional documents are also simple. Some common documents required for an Aadhaar Card Loan are:

  • KYC documents: PAN card, driver’s license, voter’s ID.
  • Income proof: Last three months’ bank account statement/salary slips/ ITR
  • Passport size photograph 

With the above tips and steps, you can choose between the options, such as a Bajaj Finserv Personal Loan or an IIFL Personal Loan. By applying for a personal loan with an Aadhaar card, you can get approval in just a few simple steps and avail of funds with ease. 

Remember, comparing lenders allows you to leverage your creditworthiness and get a better offer on your personal loan with an Aadhaar card. Moreover, be sure to check your eligibility and loan fee structure on the lender’s website before applying. With this, you can negotiate the best offer and have a stress-free experience.

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