20000 Loan on Aadhaar Card : Check Eligibility, and Steps to Apply

20000 loan on aadhar card

An Aadhaar card is primarily a unique identification number that serves as an identity and address proof. But, did you know that the same Aadhaar can also help you secure personal loans during cash crunches?

Yes, your Aadhaar is not just a relic of questionable photography skills but a golden ticket to getting a Rs. 20,000 personal loan.

Continue reading the blog to understand how the usefulness of your Aadhaar card far exceeds your photo’s sharpness.

personal loan

Features  & benefits of Using an Aadhaar Card for Rs. 20,000 Personal Loan

Aadhaar card loans come with several features such as:

Small Loan Amount

Aadhaar cards are not connected to CIBIL reports, making it difficult for banks to gauge your creditworthiness. As a result, financial institutions offer small and easily repayable loans.

Minimal Documentation

Aadhaar card loans require minimal documentation as the government ID acts as your identity, DOB (date of birth), and address proof. Some banks require a PAN card and additional KYC documents to approve the loans. But, the requirement varies.

Instant Approval

These loans are often approved and disbursed in a few minutes due to low documentation requirements and a smaller loan amount. So, Aadhaar card loans are perfect for situations where you urgently require money, such as a personal loan for a medical emergency.

No Collateral

The loans do not require collateral as the banks lend out small amounts. And, the no collateral feature makes personal loans more accessible to people without any significant assets to their name.

Flexible Repayment Options

The best part? Even though it is a Rs. 20,000 loan, the repayment term is the same as any other regular personal loan. In other words, your monthly EMIs are more manageable.

How Can I Get 20000 Loan With Only An Aadhaar Card?

In India, obtaining a loan of ₹20,000 using only an Aadhaar card is feasible, particularly through various fintech companies and microfinance institutions that offer small personal loans with minimal documentation. Here’s a general process:

Steps to Apply for a ₹20,000 Loan on Aadhaar Card

Applying for a Rs. 20,000 loan using an Aadhaar card is as simple as, if not simpler than, applying for regular personal loans. However, the process is slightly different. Let’s see how to apply for an Aadhaar card loan. 

Eligibility Criteria for 20,000 Loan on Aadhaar Card

First, check your eligibility for the personal loan. Now, different banks have different criteria. So, go through the documents and online requirements carefully.

For example, some banks may conduct additional credit checks through your PAN card. While other banks may ask for income proof like pay slips and P/L statements, amongst other documents.

But, generally, you need to fulfil the following criteria, you need:

  • To be between the ages of 21 and 60
  • To be an Indian citizen
  • A valid Aadhaar card
  • A stable income source
  • A minimum salary requirement between Rs. 12,000 and Rs. 20,000

Again, these are the basic criteria, and the actual criteria may differ based on the loan provider.

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

Documents Required for 20,000 Loan on Aadhaar Card

Well, water is wet, and Aadhaar loans require a valid Aadhaar card.

However, banks may ask for additional documents to complete their KYC process. Here are all the documents you might require during the verification procedure.

For Salaried Individuals

Identity proofDriver’s License
PAN Card
Address proofElectricity Bill
Water Bill
Income proofLast six months’ bank statements
Salary slips
Work experience proofEmployment certificate with at least 1 year of experience

For Self-Employed Individuals

Identity proofDriver’s License
PAN Card
Address proofElectricity Bill
Water Bill
Income proofLast six months’ bank statements
ITR for the past 3 years
Business registration certificate

Banks and NBFCs with low-documentation policies do not require these documents and can complete the loan process only with an Aadhaar card. Moreover, a good credit score also reduces the number of documents you require to prove your credibility.

Note: Check with your loan officers before moving forward with your application.

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

Interest Rates and Additional Charges on 20000 Aadhaar Card Loan

Compare interest rates and additional processing charges of different banks before finalising one. The goal is to find the most flexible loan with low interest rates and a long repayment period.

Usually, the interest rates start from as low as 9% per annum and can go beyond 20% per annum, depending on the financial institution’s regulations.

In addition, every bank charges a loan processing fee of 2.5% to 6% of the total amount, along with GST. Sometimes, they deduct the processing fee from the disbursed amount. So, consider this while applying for the loan amount.

Tip: Negotiate for a lower interest rate if you opt for the offline loan application route.

How is EMI calculated on a Rs.20,000 loan on an Aadhar card?

The EMI is Determined by Three Main Factors:

  1. Loan amount: This is the Rs.20,000 in your case.
  2. Interest rate: This is the rate charged by the lender on the loan amount. It is expressed as a yearly percentage.
  3. Loan tenure: This is the total duration of the loan, for which you will be making monthly payments (EMIs) to repay the loan.

EMI is calculated using a formula that considers these three factors.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

  • P – Principal Amount 
  • R – Rate of interest 
  • N – Number of years or months 

Now to make you understand better, we have broken down the process for you below:

Repayment Plan for 20,000 Loan on Aadhaar Card

Present a solid repayment plan to your loan officers to build their confidence. The more confident they are about your repayment ability, the more likely they are to approve your application.

The repayment plan also helps you budget for your monthly EMIs. Consequently, it is easier to afford the instalments without drastically altering your lifestyle.

Now, let’s look at an example repayment plan:

Loan AmountInterest Rate (p.a.)Tenure (months)EMI (Rs.)Total interest paid (Rs.)Total principal amount repaid (Rs.)

As you can see, there’s a trade-off. For lower EMIs, you need a longer repayment period and end up paying more interest. On the other hand, the EMIs are higher when you want to reduce the total interest paid to the bank.

Therefore, choose the option that is most suitable to your current financial condition.

Also Read:  How To Apply For ₹5000 Loan On Aadhaar Card?

How to Apply for Rs. 20,000 Personal Loan on Aadhaar Loan?

After everything is ready, it is quite easy to apply for an online Aadhaar card loan:

Step 1: Shortlist your loan providers

Step 2: Compare their interest rates and finalise one

Step 3: Check their eligibility criteria

Step 4: Fill out the online application

Step 5: Upload your Aadhaar number

Step 6: Upload other documents

Step 7: Enter the loan amount and repayment period

Step 8: Verify the details

Step 9: Click on submit

For Offline Method:

  • Visit your nearest bank or NBFC branch
  • Discuss the eligibility criteria with your loan officer
  • Negotiate for a lower interest rate
  • Fill out the application
  • Provide attested copies of your Aadhaar card and other documents
  • Authenticate your Aadhaar ID through biometrics or a QR code

Loan Disbursal

After the verification, the loan amount is disbursed within 24 hours if everything’s in order.

Is Only an Aadhaar Card Sufficient for Rs 20,000 Personal Loan?

While an Aadhaar card is crucial for applying for a Rs 20,000 personal loan, as it facilitates the e-Know Your Customer (e-KYC) process, it is generally not sufficient by itself. Lenders typically require additional information before making a decision on lending:

1. Proof of Income: Lenders often require you to show a certain minimum monthly income to ensure that you have the means to repay the loan. This income must be verifiable and usually needs to be directly deposited into your bank account.

2. Credit Score: A favorable credit score, often around 650 or above, is typically necessary. This score helps lenders assess your reliability in repaying the loan.

3. Employment Status: For loan approval, you generally need to be employed, either as a salaried individual or self-employed. Lenders also look at how stable and consistent your employment is.

How to Avoid Rejections of Aadhaar Card Loans?

Even though it’s unlikely, some banks and NBFCs might reject your loan application. So, here are 4 things that you can do to avoid unnecessary rejections.

Maintain your CIBIL

Keep your credit score above 650 to ensure faster approval of your loans. Paying all EMIs without delays and timely repayment of other loans helps increase your credit score.

Close Existing Loans

Banks prioritise individuals with little to no existing debts as it decreases their risk exposure. Furthermore, closing your existing loans lowers your debt-to-income ratio which is another green flag for your lenders.

Avoid Multiple Loan Applications

Loan application inquiries are also recorded in your CIBIL report. Applying for multiple loans can raise concerns and lower your credit score. So, it’s best to apply for a single Aadhaar card loan.

Double-Check your Information

Always re-verify your personal information, ID numbers, spelling, and financial figures before applying. Getting your application rejected due to silly mistakes is the last thing you want.


While the loan process is stress-free and quick, the initial steps are time-consuming. For one, you can get overwhelmed by the sheer number of Aadhaar card loans available in the market. This is where Credmudra comes in.

Credmudra is an online loan aggregator platform that does the research and comparison for you. And, after a thorough analysis of your profile, it connects you with suitable lenders that offer flexible terms. In addition, you get:

  • Self-serve knowledge base to understand various financial terms in your application process
  • Pre-underwriting services if you have no credit history

In other words, Credmudra does all the heavy lifting for you while you sit back and submit your loan application documents.

Sign up for free and explore the various Aadhaar loans available on the platform.

5 Things to Remember Before Applying for Rs 20,000 Personal Loan Using An Aadhaar Card:

Before applying for a Rs 20,000 loan using your Aadhaar card, consider these key points:

1. Check Eligibility: Make sure you meet the lender’s eligibility requirements.

2. Understand the Terms: Carefully review the loan terms, focusing on the interest rates, fees, and repayment conditions.

3. Repayment Capacity: Evaluate your financial situation to confirm you can afford to repay the loan without strain.

4. Credit Score: Having a good credit score can lead to more favorable interest rates.

5. Compare Options: Look at different lenders to find the most advantageous loan terms that suit your needs.

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


1. How to Check Aadhaar Card Loan Eligibility?

Banks offer loan documents where they mention the eligibility criteria for Aadhaar loans. Check with your loan providers before moving ahead with your loan application.

2. Do I need a PAN Card to Apply for an Aadhaar Card Loan?

While not necessary, some lenders may ask for a PAN card to check your credit score and complete the KYC process.

3. What is the Interest Rate on an Aadhaar Card Loan of Rs 20,000?

The interest rate for an Aadhaar card loan varies from 9% to over 20%, depending on the bank.

4. Can I Get an Aadhaar Card Loan without a Salary Slip?

Yes, you can get an Aadhaar card loan without a salary slip. However, you need to mandatorily produce bank statements for the past 6 months to show your financial stability.

5. Will I need a Co-Applicant for an Aadhaar Card Loan?

No, it is mandatory to get a co-applicant or guarantor for an Aadhaar card loan. However, getting one increases your chances of securing a loan.

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


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