Has your lender asked you to submit your Aadhaar card, but you don’t understand why they need it? In this article, you will learn what Aadhaar is and why you need to submit your Aadhaar to your lender to get a business loan.
What is the Aadhaar identification?
Your Aadhaar is a 12-digit numerical ID issued by the Unique Identification Authority of India (UIDAI). Aadhaar is an identification document by many governments and non-government services to verify your identity and particulars.
Here is a sample of an Aadhaar card:
All residents of India (Indians and foreign nationals) must have an Aadhaar ID. So, if you are not enrolled yet, you can visit your nearest Aadhaar Enrolment Centre to get yourself enrolled in Aadhaar.
Why do I need my Aadhaar card when applying for a business loan?
Your Aadhaar and PAN are very important in your business loan application process. Your Aadhaar is one business loan document that acts as your proof of identity. Lenders use this to do your KYC. They use your Aadhaar to verify your demographic and biometric information.
Your Aadhaar is used as proof of your following personal details:
- Your name
- Your date of birth
- Your gender
- Your permanent address
Residents of India must enrol in Aadhaar. So, if you haven’t enrolled yet, you can visit your nearest enrolment centre to get yourself enrolled in Aadhaar.
Your Aadhar is linked to your PAN, and your PAN is linked to your bank and income tax accounts, making it easier for the lender to verify your personal and financial details. It also helps them understand your company’s financial situation before lending to you.
Once your KYC is done, your lender will verify your other business loan documents, such as your proof of business ownership, proof of residence, and financial history. So, it is advisable to have these documents ready before you apply for a business loan to speed up the lender’s assessment process.
At CreditEnable, our goal is to maintain transparency and get your business loan fast. So, when you use our technology platform to apply for business funding, no surprises are waiting for you. We check your eligibility for the loan upfront and give you a complete list of business loan documents our lender partners will need to process your application. The faster we get all your business loan documents, the sooner we can match you with an appropriate lender, and you get your business loan.
If you have your business loan documents already in order, apply for a business loan with CreditEnable today!
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