With the government’s focus on financial inclusion, getting a loan on Aadhar card by government has become easier and faster than ever. Today, your Aadhar card is not just an identification document; it’s a key to accessing various government-backed loans that support personal, business, agricultural, and educational needs.
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Generate wealthsEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D)
A Loan on Aadhar Card by Government refers to financial assistance offered through government schemes where the Aadhar card is used for identity verification, KYC, and streamlined loan processing. Instead of lengthy documentation, your Aadhar card lets you access instant loans through schemes like PMMY, PMEGP, and others designed to uplift self-employed individuals and small businesses.
These loans don’t require heavy collateral and are processed digitally, thanks to Aadhar e-KYC integration.
Key Features and Benefits of Loan on Aadhar Card by Government
Easy Eligibility: Aadhar simplifies applicant verification, reducing the need for multiple documents.
Government-backed Security: Loans are provided under verified, regulated schemes ensuring transparency and reliability.
Quick Processing: With Aadhaar-based eKYC, the approval and disbursal processes are faster.
Low Interest Rates: Many government schemes offer subsidized interest rates to support micro and small businesses.
Digital Access: Applicants can apply online via government portals or public sector banks.
Government Schemes Offering Loan on Aadhar Card
Several government initiatives provide loan on Aadhar card. Here are some popular ones:
Pradhan Mantri Mudra Yojana (PMMY)
Under the PMMY scheme, small business owners, self-employed individuals, and startups can get collateral-free loans up to ₹10 lakhs. The Aadhar card is used as the main KYC document for Shishu, Kishor, and Tarun loan categories.
PMEGP (Prime Minister Employment Generation Programme)
This initiative supports micro-enterprises in manufacturing and service sectors. Applicants can get loans up to ₹25 lakhs for manufacturing and ₹10 lakhs for the service sector, verified through their Aadhar-based KYC.
Stand Up India Scheme
Designed for women entrepreneurs and members of SC/ST communities, this scheme provides loans ranging from ₹10 lakhs to ₹1 crore. Aadhar plays a key role in identity verification and subsidy tracking.
Kisan Credit Card (KCC)
Farmers can benefit from short-term loans to buy seeds, fertilizers, or equipment. Linking Aadhar ensures direct benefit transfer and easier access to credit.
Eligibility Criteria for Loan on Aadhar Card by Government
To apply for a government loan using your Aadhar card, you generally need:
Indian citizenship and a valid Aadhar card
Minimum age of 18 years
Proof of income or business ownership (depending on the scheme)
Active bank account linked with Aadhar
Basic business or project plan (for business loans)
Documents Required for Loan on Aadhar Card by Government
Minimal documentation is required due to Aadhar-based eKYC. However, you may still need:
Aadhar card (mandatory)
PAN card
Bank passbook or statement
Passport-size photographs
Business plan or address proof (if applicable)
How to Apply for Loan on Aadhar Card by Government
Follow these simple steps to apply:
Visit the official government loan scheme website (such as mudra.org.in or pmegp.gov.in).
Choose the loan type that fits your requirements.
Fill out the online application form and complete Aadhar-based eKYC.
Upload necessary documents.
Submit and wait for verification.
Once approved, the loan amount is directly transferred to your linked bank account.
Advantages of Aadhar-Based Loan Process
Reduces paperwork and waiting time.
Makes loan access easier in rural and semi-urban areas.
Ensures transparency and security through biometric verification.
Helps track subsidies and benefits directly through JAM (Jan Dhan–Aadhar–Mobile) linkage.
Conclusion
A loan on Aadhar card by government is an effective way for citizens to access affordable credit with minimal hassle. These loans not only empower entrepreneurs and farmers but also promote digital and financial inclusion across India. Whether you’re starting a small business, expanding operations, or seeking personal credit, linking your Aadhar can simplify the entire process and help you access funds faster.
FAQs
Can I get an instant loan using my Aadhar card?
Yes, certain government and banking portals offer instant loans where Aadhar eKYC speeds up verification and approval.
Is Aadhar card mandatory for applying for these loans?
Yes, the Aadhar card is essential for identity verification, eKYC, and direct benefit transfer tracking.
How long does it take to get the loan approved?
With Aadhar-based verification, most applications are processed within a few working days, provided documents are complete.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-02-2026
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealths Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D)
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