Efficient Aadhaar Integration – Business Loan Applications

Aadhaar Card has become one of the most important personal identification documents of our time. The government issued ID is regulated by the Aadhaar Act and managed by the Unique Identification Authority of India. Here are some steps taken by the government to make Aadhaar an integral part of the Indian financial system.

• Mandatory linking of Aadhar number to personal and business bank accounts : The government has mandated the linking of Aadhar and personal / business bank accounts due the fact that aadhar is an identification document which cannot be duplicated or forged because it takes person’s identity based on their fingerprints and retina scan along with others. Hence, to secure the finances to ensure there’s no dummy account and to attach and confirm an identity to the bank account, it is mandatory to link Aadhar to one.
• Mandatory linking of Aadhar number to the Permanent Account Number (PAN) : Permanent account number (PAN) is one the most important documents for an individual or business to do any sort of financial transactions, as it records data related to debt transactions and other financial transactions to help the authorities determine credit taking capacity of the concerned. Linking Aadhar to PAN is essential as it ensures that there are no dummy PAN being issued for an individual. As soon as an individual makes an application for a new PAN, they’d be asked for their Aadhar number which will help the authorities know if the person is already a holder of permanent account number or not.
• Mandatory linking of Aadhar number to mobile numbers : Since we are living in a digital age, mobiles are leveraged for almost everything. Be it personal, social or financial tasks. This increases the risks of fraud and unlawful activities. To curb the same, and to attach an individual’s identity to a mobile number, the government has mandated the linking of Aadhar number to mobile numbers, so that in case of any fraud or unlawful activities from a mobile number, the authorities can catch hold of the mobile number holder to investigate and take action further.
• Linking Aadhar number with LPG Connection, Ration Card and Voter ID : The government has gone a step further by mandating the linking of Aadhar with other ID proofs like ration card, voter card, etc. as these ID proofs are valid as Know Your Customer (KYC) documents and can be used to for multiple purposes both financial and non financial, like applying for a loan, etc. to curb practices where an individual applies for a fresh aforementioned identification document with the purpose of wiping past records, the government has mandated linking these documents to Aadhar to avoid issuance of IDs with different ID number for an existing applicant.

Also Read: Aadhaar Card Update/Correction

The deep integration of Aadhar number with other financial and identification services means that the Aadhar Card has become a one-for-all KYC document. An Aadhar Card contains your official name, date of birth and registered residential address, plus it is linked to your verified mobile number – all of which are details sought by financial institutions when verifying a loan application. When you link all your documents with your Aadhaar number, it becomes very easy for lenders to verify your personal and financial details. This in turn facilitates faster business loan approvals when you submit Aadhar as a KYC document. And it becomes feasible for the lenders to release loans efficiently.

Not only this, the government runs schemes where the benefits are to be reached to the marginalized population offering easier loans to boost productivity of a sector. This is a loan on adhar card released to the beneficiary where only basic KYC documents are taken to verify the identity.

Today, you can get a business loan online in India by submitting only a few essential documents, such as your Aadhar Card, Business Registration Certificate, Business Account Statements and Tax Compliance Certificate. Moreover, Non-Banking Financial Institutions such as Lendingkart Finance, offer business loan interest rates which are more flexible than commercial bank rates.

Although some might have a question about the feasibility and chances of approval of a loan on Aadhar card alone, however as highlighted earlier the applicant will have to produce enough documents to make it a serious application for the lender’s consideration. As lack of documentation indicates high risk, such loan applications often end up in the bin.

Lendingkart also promises loan amount disbursal within 3 days of document verification, which is incredibly faster than getting a business loan from a bank. To get a Lendingkart Business Loan you have to simply sign-up for a free-account and provide a few details about your business. Lendingkart loan amount calculator and business loan interest rate calculator will then process your details and offer a custom business loan amount, just for you.

Once you confirm the amount, your business loan application will be processed pending document verification. You can simply upload digital copies of your documents in your account and track the entire business loan application online.

Link your Aadhaar to your bank accounts and mobile numbers today, the deadline for doing so has been extended beyond 31 March 2018 for an indefinite period. But the linking is still mandatory and comes with its own benefits. One of the major benefits being by linking Aadhaar card loan processing gets faster as it helps the lenders verify the identity quickly, and cross verify the originality of your other documents.

Conclusion

The Aadhar card is an important identification document for personal identification in India, administered by the Unique Identification Authority of India. The government has taken numerous steps towards making Aadhar a part of the financial system so that fraudulence and other related issues decrease and safety increases. It involves linking Aadhaar with bank accounts for both individuals and businesses, PAN numbers, mobile numbers, among others, like LPG connections, ration cards, and voter IDs. These links help to eliminate duplication of IDs and ensure strong security in transactions. 

The new Aadhar will serve as a fully KYC document, incorporating personal information that includes a person’s name, date of birth, address, and verified mobile number. Thus helping the authorities to verify the identity with ease leading to rapid processes. As more and more documents get linked to an Aadhaar number, institutions can get streamlined verification in place to get the approval for a business loan speedily.

Non-banking financial companies like lendingkart have used Aadhar for faster processing of loan applications. With attractive interest rates, and quick disbursal often in 3 days of application approval. Aadhar enables the lenders to make the KYC assessment in a quick and efficient way, cutting down both time and costs, which as a benefit is passed on to the customer in the form of low wait time, and attractive rates. Application requires minimal documentation, including Aadhaar, business registration, account statements, and tax compliance certificates. Online tracking of loan applications is also possible, also the customer can contact the helpline number to check real time status. Although the deadline to link Aadhaar has been put indefinitely, it remains an essential requirement, thereby ensuring many benefits such as safe financial transactions and easy processing of loans.

To apply online for a business loan with Lendingkart.

Frequently Asked Questions

Can I use my Aadhaar card as a valid identity proof when applying for a business loan?

Yes, you can typically use your Aadhaar card for business loan as valid identity proof when applying in India. It serves as a government-issued document confirming your identity and address, simplifying the application process and verification for lenders.

What are the benefits of using an Aadhaar card when applying for a business loan?

Business loan on an Aadhaar card application in India offers several benefits. It streamlines the process, reduces paperwork, and speeds up verification, leading to quicker loan approvals. Additionally, it enhances transparency and reduces the risk of identity-related fraud, benefiting both lenders and borrowers.

Is it mandatory to link my Aadhaar card with my business loan application?

Linking your Aadhaar card with business loan application is not mandatory. However, it is best to check with your business loan provider since each provider may have varying needs.

How can I link my Aadhaar card to my business loan application?

To link your Aadhaar card to your business loan application, provide your Aadhaar number to the lender during the application process. The lender will guide you through the necessary steps to ensure your Aadhaar details are associated with your loan application, facilitating the verification process.

Are there any privacy concerns related to using Aadhaar for business loans?

Yes, there have been privacy concerns regarding Business loan Aadhaar card usage. These concerns include data security, potential misuse of personal information, and the need for firm safeguards to protect individuals’ sensitive data. It’s essential to ensure lenders comply with data protection regulations and prioritise privacy.