Did you know you can also get a loan using your Aadhaar card? Yes, you can get a loan of up to ₹2,000 with just your Aadhaar card. The only condition is that you should only apply for a loan from regulated lenders or banks. Read all the terms and conditions carefully before clicking accept. Don't be fooled by someone pretending to be a loan provider. Let us explain how you can get a loan using just your Aadhaar card and the entire process.

First, select a safe lender.
For small loans of up to ₹2,000, you'll typically find offers from bank apps, NBFC apps, or affiliate platforms. Before applying, ensure the lender is a regulated entity, not a random "instant cash" app operating on its own. RBI's digital loan regulations are based on this very principle: loans must be issued by a regulated entity, provide clear information, and have appropriate channels for grievance redressal.

Have Basic Documents Ready
Even if a loan is described as "Aadhaar-based," most lenders require two things to disburse and identify you: an active bank account and a working mobile number linked to your Aadhaar for OTP authentication. Aadhaar OTP-based e-KYC requires your specific consent for authentication.

Apply on the Official App or Website
Download the bank or NBFC's official app, or use a reputable platform that clearly indicates which regulated lender it is offering. Avoid clicking on loan links sent via WhatsApp, SMS, or social media. The RBI and the government have repeatedly warned people about unauthorized digital loan apps and scams that misuse KYC documents.

Carefully Complete the KYC Process
During KYC, you will typically be asked for your PAN card, Aadhaar number, and the OTP received on your Aadhaar-linked mobile number. Some lenders may also use video KYC. Here are two quick safety rules: Enter the OTP only on the lender's own screen, and never share your Aadhaar OTP with any "support person" on a call. Aadhaar authentication is based on consent, and you should treat the OTP like a password.

Read the loan details before accepting.
For a loan of Rs. 2,000, the biggest risk is not the principal amount, but the charges. Before accepting, review the Key Facts statement or equivalent summary and check the interest rate, processing fee, any "platform fee," late fee, and exact repayment date. RBI's digital loan framework is designed to allow borrowers to clearly see the costs and know who is responsible for the loan.

Make sure the money and installments go to the right place.
A good practice is to ensure that loan amounts are deposited into your bank account and installments are sent to a registered lender, not to a personal UPI ID or an unknown account. If an app asks you to make payments elsewhere, consider it a warning and stop using the app.

Make payments on time and don't extend the loan.
Small "instant" loans can become incredibly expensive if you miss the due date and repeatedly extend them. Set reminders, pay early if there's no penalty, and keep proof of payment.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.