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Personal loans that are borrowed using an Aadhaar card are based on KYC procedures. The loan amount ranges between Rs 10,000 to Rs 35 lakh.
1. Age- Those applying should be residents of India with an age range of 20 to 60 years. Applicants below 40 years are generally given loans at lower interest rates as they are considered more creditworthy.
Individuals who are employed in the public or private sector or are self-employed with a minimum of one year of steady income are eligible to apply for personal loans using their Aadhaar card.
1. Interest Rates- The rates of interest in these loans are usually between 10.49 per cent and 14 per cent per annum.
Repayment loan tenures can go up to 8 years. It also varies from financial institutions. The processing fee is between 0.5 per cent to 5 per cent of the loan amount, along with applicable taxes.
In order to apply for these loans, the first step is to research and select a lender. This is followed by finding the Aadhaar-based loan facility, filling in the application form, submitting documents and waiting for approval and disbursement.
Compiled by Syed Muskan