Aadhar card

Aadhaar Loan in India : How to Get a Government Loan Using Aadhaar Card (Schemes + Step-by-Step Guide)

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Aadhaar Loan in India : How to Get a Government Loan Using Aadhaar Card (Schemes + Step-by-Step Guide)

India’s push toward digital governance has made the Aadhaar card a cornerstone of citizen identity. It’s not just a means of identification—it’s also your gateway to accessing government welfare schemes, including low-interest and subsidized loans for farmers, students, women, small business owners, and underprivileged groups.

If you’re looking to apply for a government loan using your Aadhaar card, this guide will walk you through the process, schemes available, eligibility, required documents, and smart tips to improve your chances of approval.

 Why Aadhaar Matters for Government Loans

The 12-digit Aadhaar number issued by UIDAI enables:

  • e-KYC (Electronic Know Your Customer) for quick verification

  • Direct Benefit Transfer (DBT) to Aadhaar-linked bank accounts

  • Prevention of duplicate/fake loan applications

  • Faster loan approvals without excessive paperwork

Thanks to Aadhaar integration, loan application processes have become faster, more transparent, and easier to track.

 Benefits of Aadhaar-Linked Loans

  • Quick online verification via OTP

  • Minimal paperwork

  • Direct subsidy disbursal into bank accounts

  • Access to various Central and State government schemes

  • Eligibility for MSMEs, farmers, women, SC/ST, and youth

  • Easy status tracking and digital documentation

 Top Government Loan Schemes Requiring Aadhaar

1. PM Mudra Yojana

  • For: Micro/small businesses and startups

  • Loan: Shishu (₹50,000), Kishor (₹50k–₹5L), Tarun (₹5–₹10L)

  • Apply: mudra.org.in

2. PMEGP (Prime Minister’s Employment Generation Programme)

3. Stand-Up India Scheme

  • For: SC/ST and women entrepreneurs

  • Loan: ₹10 lakh to ₹1 crore

  • Apply: standupmitra.in

4. Udyogini Scheme

  • For: Women in rural areas

  • Subsidy-based business loans

  • Aadhaar and income proof required

5. Kisan Credit Card (KCC)

  • For: Farmers

  • Loan: Up to ₹3 lakh at 4% interest

  • Aadhaar linked to land records is a must

6. NSFDC Loans

  • For: SC/ST individuals

  • Loans for shops, poultry, dairy, tailoring, etc.

  • Aadhaar and caste certificate needed

7. Vidya Lakshmi Portal (Education Loans)

 Eligibility Criteria (Common Across Schemes)

  • Indian citizen with valid Aadhaar card

  • Bank account linked with Aadhaar

  • Age: 18+ (some schemes may require 21+)

  • Must belong to the eligible group (e.g., SC/ST/Women/Farmer/MSME)

  • Must not be a loan defaulter

  • Viable business or education plan

 Required Documents

Prepare these before applying:

  • Aadhaar card (linked to mobile)

  • PAN card (for loans > ₹50,000)

  • Bank passbook (Aadhaar-linked)

  • Business/education proposal

  • Income certificate

  • Caste certificate (if applicable)

  • Passport-size photo

  • Rent/land proof (if applicable)

How to Apply Online – Step-by-Step

  1. Visit the official portal of the scheme (e.g., Mudra, PMEGP)

  2. Click on Apply/Register

  3. Enter Aadhaar number and OTP (linked to mobile)

  4. Fill out the loan application form

  5. Upload scanned documents

  6. Submit and download application reference number

  7. Track your application status online

 Offline Application (via CSC)

For those not comfortable online:

  • Visit the nearest Common Service Centre (CSC) or BC welfare office

  • Carry your Aadhaar, business plan, and other documents

  • The operator will fill the form for you

  • Get a printed acknowledgment for future reference

 Loan Amount, Interest & Repayment (Examples)

Scheme Loan Amount Interest Rate Repayment Term
Mudra Shishu Up to ₹50,000 7–12% 3–5 years
PMEGP ₹1L to ₹25L ~12% 3–7 years
Stand-Up India ₹10L to ₹1Cr ~10% 7 years + grace
KCC Up to ₹3L 4% (subsidized) Seasonal (1 year)

 Tips for Quick Approval

  • Ensure Aadhaar is linked to bank and mobile number

  • Submit a clear, realistic proposal

  • Use templates or help from CSC/NGOs

  • Avoid fraudulent information or duplicate applications

  • Keep mobile number updated for OTPs

 State-Level Loan Portals

State Portal
Karnataka sevasindhu.karnataka.gov.in
Telangana tsobmms.cgg.gov.in
Andhra Pradesh navasakam.ap.gov.in
Tamil Nadu tamilnadumahalir.org

 Final Words

Whether you’re a budding entrepreneur, student, or farmer—Aadhaar-linked government loans offer an easy, paperless way to access credit and grow. With the right documents and awareness, you can secure funding under powerful schemes like Mudra, PMEGP, or Stand-Up India. So, check your eligibility, prepare your proposal, and apply today for a brighter future.