English, Fake News

Government has not launched any scheme offering loans solely based on Aadhaar card


A series of videos are being circulated across social media platforms alleging that the government is offering loans exclusively based on Aadhaar cards, whether for personal use or to set up their own business (here, here & here). These videos assert that loans ranging from Rs. 50 thousand to Rs. 10 lakhs are being disbursed with government subsidies and without requiring any collateral. Additionally, the accompanying social media posts share links to portals where individuals can purportedly access these schemes. In this article, we fact-check the authenticity of the assertions made in these posts.

Archived versions of these posts can be found here, here, & here.

Claim:  Government is offering subsidized loans, and without requiring any collateral exclusively based on Aadhaar cards.

Fact: Although the government is extending collateral-free loans to individuals for starting their enterprises, there exists no government scheme specifically providing loans solely based on the Aadhaar card. While some banks/NBFCs are providing loans with minimal documentation, primarily using Aadhaar authentication, these are not directly subsidized by the government. Additionally, individuals must fulfill other conditions established by the bank besides possessing an Aadhar card. Hence, the claim made in the post is FALSE.

While the utilization of Aadhaar for banking transactions and accessing government entitlements is on the rise, primarily due to its status as a key KYC document, it is inaccurate to assert that the government is issuing loans solely based on Aadhaar card information. Contrary to the viral claim, our investigation did not reveal any information about a government scheme or initiative that provides loans exclusively based on Aadhaar.

The government does provide collateral-free, subsidized loans through initiatives such as Mudra Yojana, Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), etc., to support individuals in initiating their businesses. However, it’s important to note that these loans are not secured against Aadhaar. Individuals interested in availing themselves of these loans must meet the specific eligibility criteria outlined by each respective scheme.

Misleading advertisements :

However, it’s essential to note that banks and NBFCs are offering instant loans with minimal documentation, relying solely on Aadhaar authentication for verification. These financial institutions advertise these loans with misleading titles such as ‘instant personal loan on Aadhaar card’, ‘Aadhaar Card Loan’, ‘How to Get a 50000 Loan On Aadhaar Card’, etc., which may mislead people into thinking that these loans are akin to those obtained through a credit card.

However, it’s important to note that these loans are not extended against the Aadhaar card itself. Banks and NBFCs that offer these loans consider Aadhaar as the primary document due to its inclusion of biometric information, which facilitates easy verification of an individual’s authenticity and identity. It’s important to emphasize that these loans are not secured against Aadhaar.

In addition to Aadhaar, individuals seeking these loans must also fulfill other requirements set forth by the bank. Moreover, these loans are not subsidized; they accrue interest, and, crucially, they are not part of a direct government scheme or initiative.

No such Aadhaar loan scheme:

As news about these Aadhaar loans spread rapidly on social media, the government, through its official fact-checking wing PIB, has repeatedly categorically debunked the news as false (here, here, here & here). It has been explicitly clarified that the government is not implementing any such scheme.

Given that these viral posts prompt users to visit specific portals and provide Aadhaar and other information like a bank account, it is recommended to refrain from sharing sensitive details such as Aadhaar, as this could potentially result in the leakage of personal information and, in some instances, lead to financial fraud.

To sum it up, no, the government hasn’t launched any scheme providing loans solely on Aadhaar cards.


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