Loans
come handy, whenever you need funds urgently, or when you’re planning to buy
property. Whether it is an unsecured loan, such as a personal loan for
financial emergency or secured loan, your loan application is subject to the
verification of necessary documents. These documents bear testimony to your
identity, income and residence.
With
Aadhar, the unique identification number becoming mandatory for all Indians,
the question on every borrower’s mind, at the time of loan application, is, if
Aadhar is also mandatory for loan application and if Aadhar online download will suffice.
Is Aadhar Mandatory?
Although
lenders have not made Aadhar mandatory for borrowers to access any line of
credit yet, there is no denying that loan processing can be accelerated with an
Aadhar card. This is because, the document verification process reduces drastically
when you provide your Aadhar card as an identity proof.
This
is especially true of online or instant loans that are verified by using e-KYC
based on Aadhar. Thus, if you are in urgent need of funds, you can avail an
easy personal loan online by sharing a copy of your Aadhar.
Documents Required for
Personal Loan and Home Loan
When
applying for a Personal Loan or Home Loan, you need to furnish a set of
different documents, which are required for the verification of your
credentials. Here’s a brief lowdown on the different sets of documents required
for Personal Loan and Home Loan.
The
required documents for personal loan are:
● Identity
proof (Aadhar/Voter ID/passport/driving license)
● Address
proof (Aadhar/Voter ID/passport/driving license)
● Bank
statements of three months
● Latest
salary slip and Form 16
Unlike
a personal loan, that is unsecured and for a shorter tenor, a home loan is a
secured form of credit and a long-term commitment, which makes its
documentation more comprehensive.
Apart
from the above-mentioned documents, the required
documents for home loan include:
● Certified
proof of employment
● IT
returns (3 years)
● Bank
passbook and account statement
● Utility
bills not more than 3 months old
● Insurance
policy receipts and other investment proof
● Letter
from a recognised public authority verifying your current place of residence
Self-employed
individuals would need to furnish further documents such as
● Professional
or business introduction
● Photocopy
of registration of business
● Certificate
of practice
● Advance
tax receipts
● Balance
sheet and profit and loss account of business
These
documents, as mentioned above, need to be furnished as income and address proof
that remains standard across lenders. Apart from these, you would also need to
furnish the lender with a set of property documents that include the likes of
the deed of sale, possession certificate, tax receipts, approved copy of the
building plan, No Objection Certificate (NOC) from the housing society among
others.
As
mentioned earlier, whetting of your personal documents becomes easier for the
lender, if you can furnish your Aadhar details upfront, as it is considered a
universal identity proof. It will thus bring down your processing time. Do not
fret if you do not have a hard copy of your Aadhar card handy as the Aadhar
online download link can provide you access to get Aadhar card instantly, of which you can
take a printout for submission.
What Purpose Does
Aadhar Serve?
Until
a decade ago, there was no uniform official ID in India This led to a number of
complications in various levels within the Government and among the public at
large.
With
the introduction of Aadhar by the Government of India in 2010, a unique
official ID has been created, which is considered the world’s largest biometric
database. The presence of Aadhar makes everything from getting a SIM card for
your phone to availing a loan easy.
Here’s
why:
● As
Aadhar is a valid proof of residence in itself, it removes the need for a
lender to assess individual documents for identity and address proof. In the
past, with each individual borrower submitting a different identity and address
proof, the whetting process for lenders was not only lengthy, but also often
led to discrepancies because of the sheer volume of documents to be handled.
● With
Aadhar, the need to whet these individual documents is eliminated, and you can
expect faster processing of your loan application.
Thus,
if you are planning to take a loan soon or anticipate the need for credit in
the near future, you are better off with an Aadhar card. Thus, when you make a
loan application, all you have to do is furnish a copy of your Aadhar card.