How To Apply For Rs. 5000 Loan On Aadhaar Card?

Home » Blogs » How To Apply For Rs. 5000 Loan On Aadhaar Card?

Imagine needing a small amount of money, like ₹5000, to cover an urgent expense. It could be anything rent, overdue bills, groceries. But, with traditional loan applications, you’d need to gather a mountain of paperwork and wait for lengthy approvals. Not anymore! Your Aadhaar Card is your gateway to hassle-free financing.

This unique 12-digit number serves as your primary KYC (know your customer) document, eliminating the need for piles of paperwork. Thanks to biometric data from your Aadhaar card, lenders can verify your identity and address instantly, speeding up the loan approval process.

No collateral required, no questions asked, unlike traditional loans that often demand collateral, Aadhaar Card-based loans are unsecured, meaning you don’t have to cough up any hard assets like gold or property.

Whether it’s an unexpected medical bill, a dream international trip, a wedding celebration, or a new gadget, Aadhaar Card loans can cover a variety of needs.

The amount can be as small as ₹5000, making it perfect for immediate requirements. Applying online has never been easier.

Thanks to digitisation and your Aadhaar card, you can now apply for a loan right from the comfort of your home. With your Aadhaar data, you can complete the documentation procedure, also known as e-KYC, online. Let’s look at some features of this type of loan.

Benefits of 5000 Rupees Loan on Aadhaar Card 

1. Instant Disbursal: Get your hands on the cash you need in no time! Aadhaar card loans are known for their speedy processing and disbursement.

2. Minimal Documentation: No more piles of paperwork! Just provide your Aadhaar card details and you’re good to go.

3. Fast Processing Time: Unlike traditional loans, Aadhaar card loans are processed and approved within minutes, saving you time and effort.

4. Flexible Repayment Tenure: Choose a repayment plan that fits your financial situation, with tenures of up to 72 months.

5. No End-Use Restrictions: Use the loan amount for any urgent cash need, whether it’s medical expenses, travel, or an unexpected bill.

6. No Collateral Required: No need to pledge any assets like property or gold. Aadhaar card loans are unsecured, making them easily accessible.

So, if you’re facing a financial crunch, don’t worry! Your Aadhaar card is here to support you through.

Also, Read: How To Get A Personal Loan On Aadhaar Card?

Purpose of 5000 loan on an Aadhaar Card:

Get a quick ₹5,000 loan using your Aadhaar card. This loan can help you fast when you need money for:

1. Health costs: Get help paying for doctor visits, hospital stays, and medicine.
2. School costs: Use it for school fees, books, and other learning materials.
3. Living costs: Helps with your daily expenses like house rent, food, and bills.
4. Work costs: Can be used for your job needs, like buying goods, advertising, and paying workers.
5. Personal needs: Good for personal things like wedding costs, holiday trips, or fixing your car.

Getting this loan is easy and fast because there’s not much paperwork, but we would suggest that you should go through the interest rates offered by the banks before taking up a 5,000 loan on aadhaar card.

Interest Rates Offered by Banks on Rs 5000 Aadhaar Card Loan:

1. Axis Bank: Starting from 10.49% annual interest

2. IndusInd Bank: Annual interest begins at 10.25%

3. IDFC Bank: Interest rates commence at 10.49% annually

4.HDFC Bank: Interest rates initiate at 10.50% per annum

5. ICICI Bank: Starting from 10.50% interest annually

6. Kotak Mahindra Bank: Interest rates begin at 10.99% per annum

7. Federal Bank: Annual interest rates range from 11.49% to 14.49%

Now, let’s look at how much amount you would have to pay monthly if you take a loan of 5,000 on Aadhaar card:

Also, Read: How To Get a 10000 Loan On Aadhaar Card?

Calculate Your EMI for 5000 Aadhaar Card Loan

To calculate the Equated Monthly Installment (EMI) for a loan, we can use the formula:

 EMI = P x R x (1+R)^N / [(1+R)^N-1] 

where:

• P is the principal amount (the initial amount of the loan),
• r is the monthly interest rate (annual interest rate divided by 12),
• n is the number of months.

Let’s assume an average interest rate from the ones provided, as the exact rate might depend on the bank and other factors. Taking an average of the rates provided (which range from 10.25% to around 14.49%), let’s use an approximate rate of 12% per annum for calculation purposes.

First, we convert the annual interest rate to a monthly interest rate by dividing by 12:
r = 12% / 12 = 1% per month = 0.01 (as a decimal)

Then, we use the formula with:

P=5000
r=0.01
n=12

Let’s calculate the EMI using these values.

The calculated Equated Monthly Installment (EMI) for a ₹5,000 loan using an Aadhaar card at an approximate average annual interest rate of 12% for a period of 12 months would be approximately ₹444.24 per month.

Also, Read:  How to Apply for a ₹1000 Loan on Aadhaar Card?

Eligibility Criteria for 5000 Aadhaar Card Loan:

1. Age: You must be between 21 and 65 years old to apply for the loan.

2.Documents: Your Aadhaar card is the primary document required for the application process.

3. Employment: Whether you’re salaried or self-employed, you’re eligible to apply.

4. Income: Your monthly salary must meet the minimum income criteria set by the lender.

5. Credit Score: A credit score of 650 or above is generally considered desirable for loan approval.

6. Bank Account: An active bank account linked to your Aadhaar card and internet banking facility is essential.

Is Only an Aadhaar Card Sufficient for 5000 Loan On Aadhar Card?

An Aadhaar card can be sufficient to apply for an instant ₹5,000 loan, but additional criteria must typically be met. While the Aadhaar card facilitates electronic Know Your Customer (e-KYC) processes, making it easier to apply for loans online with minimal documentation, most lenders also require proof of income and a check of your credit history to approve the loan.

1. Income Requirements: Many lenders require you to have a minimum monthly income to qualify for the loan. This income must be verifiable and usually needs to be credited directly to a bank account.

2. Credit Score: A minimum credit score (often around 650) might be necessary, depending on the lender. The credit score helps lenders assess your creditworthiness and repayment capacity.

3. Employment Status: You generally need to be employed, either salaried or self-employed, to apply for such loans. The stability and nature of your employment might also be considered.

Documents Required for 5000 loan on an Aadhaar Card

Even for a small 5,000 loan on Aadhar card, additional documentation, such as 

• proof of income, 
• proof of address and 
• a recent photograph may still be required,

Now that you know the documents, let’s break down how you can apply for a Rs 5,000 loan.

How Can I Get 5000 Loan With Only An Aadhaar Card?

Here’s how you can apply for a Rs 5,000 loan on aadhaar card?

Thanks to digitization and your Aadhaar card, you can now apply for a loan right from the comfort of your home. Follow the steps below: 

1. Go to the lender’s site or app

2. Sign up with your phone number

3. Input personal info and income details

4. Choose loan amount & tenure

5. Add bank details for direct disbursement

It’s important to understand that while the Aadhaar card facilitates the application process by simplifying the KYC requirement, some lenders might still require additional proof of income or check your credit score to assess your creditworthiness and repayment capacity. Ensure you review the lender’s requirements and terms thoroughly before applying​!

4 Points To Remember Before Applying for ₹5,000 Aadhaar Card Loan

Here are some points to consider before applying for a ₹5,000 loan using an Aadhaar card:

1. Verify Eligibility: Confirm that you meet the lender’s requirements, such as age and income criteria, before applying.

2. Review the Loan Terms: Carefully examine the loan agreement, especially the interest rates, fees, and repayment conditions.

3. Evaluate Repayment Ability: Ensure you have the financial capacity to repay the loan comfortably within the agreed timeframe.

4. Keep a Healthy Credit Score: While not always required for small loans, maintaining a good credit score can enhance your likelihood of getting approved.

No need to step out or gather physical documents. E-KYC saves you time and effort, letting you access the funds you need faster. So, if life throws you a financial curveball, don’t panic! Your Aadhaar card is your key to convenient and affordable financing. Just remember to repay your loan responsibly to maintain a good credit score.

Also, Read: How to Get Rs. 2 lakh Personal Loan on Aadhaar Card?

 FAQs On 5000 Aadhaar Card Loan:

1. Is an Aadhaar Card Loan Genuine or Deceptive?

 An Aadhaar-based cash loan can be legitimate if acquired from authorized lenders. However, caution is advised against potential scams or unethical practices.

2. What’s the Interest Rate for A ₹5,000 Aadhaar Card Loan?

Interest rates for Aadhaar card loans typically start at 9% per annum. However, the exact rate you’ll be offered depends on your individual circumstances, such as your credit history and repayment tenure.

3. Do I Need to Provide Collateral to Get An Aadhaar Card Loan?

Nope, Aadhaar card loans are unsecured loans, meaning you don’t need to put up any collateral, like property or gold, to qualify for the loan.

4. How Long Does it Take to Receive the Loan Amount with An Aadhaar Card Loan?

The best part about Aadhaar card loans is their speedy processing time. Once your application is approved and verified, you can expect to receive the loan amount directly into your bank account within a few minutes.

5. How do I Obtain A ₹5000 Loan without A Salary Slip? 

Explore alternatives like online lenders or microfinance institutions, which might offer different eligibility criteria, enabling you to secure the loan without a salary slip.

Also, Read: Apply for a Rs. 50,000 loan on an Aadhaar Card