A significant portion of Indian households purchase gold for religious and important occasions, and then they store it in bank lockers. Yet, people who are familiar with the price of gold on the domestic market use the gold to obtain a low interest gold loan. The advantages of gold loans have led to their widespread popularity. The easy documentation process and other benefits of taking out a gold loan make this credit line very popular. Many benefits of gold loans enable you to pay for expenses without using up all of your hard-earned savings.
A loan secured by gold gives quick finance that is approved quickly and transferred into the borrower’s bank account within 30 minutes. Without requiring any further collateral, lenders offer the loan amount depending on the combined value of the gold jewellery. The borrower may utilise the loan proceeds in whatever way they see fit without having to justify each expense. A gold loan application can be submitted online without going to the lender’s corporate headquarters. It requires less time to apply for a loan. Gold loans have a reduced paperwork requirement, which speeds up disbursals and saves time throughout the application process.
A loan secured by gold jewellery, gold bars, or gold coins is known as a gold loan. It is surely one of the safest methods for arranging quick cash for your demands, whether they are personal or professional. A gold loan is more accessible to obtain than other sorts of loans since the gold’s value secures it. Reputable lenders then take control of the gold and keep it secure in closed vaults. You may get a low interest gold loan if the lender finds you eligible.
The following are some examples of frequently used eligibility criteria:
- You must be more than 18 years and not more aged than 70 years.
- You must be an employee, independent contractor, farmer, or business owner.
- You must pass the minimum carat threshold imposed by the lender, which is generally between 18 to 24 karats.
- You must possess all required documentation for the gold loan.
What paperwork is required for a gold loan?
You must have the necessary gold loan documents on hand when applying for a gold loan. These records consist of the following:
- Valid and active identity proof like Aadhar card, PAN card, Voter ID card, Passport, Driving license, Ration card, passport-sized photographs, and Form 60/61.
- Valid and active address proof like Voter ID card, Driving license, Ration card, Aadhar card, Passport, Utility bills, Income proof, and lease agreement.
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Checklist for a gold loan:
Each lender has a different process for applying for a gold loan. Nonetheless, a few of the fundamental requirements for the gold loan process are as follows-
- Assembling your golden articles- All of the gold items, like gold ring, necklace and other pure gold jewellery, etc., that you want to pledge in advance should be kept. Make sure that the karat ranges from 22 to 24.
- Purity check- The lender will examine the purity of your possessions when you have all the required paperwork and gold jewellery. Then the lender will offer you up to 75% of the gold’s market worth. You may also get a low interest gold loan.
- Documentation- You can start the identification and address verification process once the value of the pledged products has been established.
- Receive funds- You can receive money once everything is in order. Confirm the loan’s terms and make on-time payments to avoid fees.