Gold has been one of the most valued investments for quite a long period. Considered a tangible good that one can trade for money in times of emergency, gold has helped various people meet their funding needs. But that’s not it. In the recent period, the demand for gold loans has been increasing quite rapidly. Right from the banks to the NBFCs, every financial institution has seen a surge in the number of people seeking gold loans. This increases the need to know about gold loan eligibility. So, let us have a quick look at the various aspects of a gold loan.
Basics Of The Gold Loan
Gold loans are secured loans offered to borrowers by financial institutions such as banks and non-banking finance companies (NBFCs). It is a loan sanctioned very quickly and can even be availed with a low CIBIL score.
The gold loan interest rate is determined by the borrower’s amount pledged and the length of time. You can submit only gold in the range of 18 to 24 carats for loan approval and processing.
The typical amount of a gold loan sanctioned based on the gold quantity, current market value, and gold loan papers are around 80% of the entire worth of gold products. The gold loan eligibility is quite similar to that of any other loan.
Eligibility For Gold Loan
While applying for a gold loan at any financial institution, one needs to fulfil a few criteria. These basic gold loan eligibility conditions make you a perfect candidate to apply for the loan. The primary criteria include the following:
- The age of the applicant should be between 18-75 years.
- The applicant should be an Indian citizen.
- The applicant should be working either salaried or self-employed and should have a relevant proof for the same.
- A co-applicant might be required if the age of the applicant is above 70 years.
- The gold to be pledged for the loan should be a minimum of 18-24 karats.
Though this is the basic gold loan eligibility criteria, additional documents must be submitted to apply for the gold loan.
Documents Required For Gold Loan
Once the applicant is through the basic gold loan eligibility criteria, you must submit a few additional documents to get approved. The main documents included for gold loans are as follows:
- KYC documents
Know Your Customer or KYC refers to the government-issued identity proofs that can help the lender know about the applicant. The main aim of these documents is to track the applicant’s financial background, address, date of birth, and other aspects to assure genuineness. The main types of KYC documents for gold loans include:
Proof of identity like Aadhar Card, PAN Card, Voter ID, Driving License, Passport, or any other photo ID issued by a state or central government.
Proof of Address like Aadhar Card, Voter ID, Driving License, Passport, utility bills, or any other address document issued by a state or central government.
- Recent Photograph
The general requirement is a set of 2 recent photographs. The picture should have a light background with visible eyes and preferably 3-6 months old only. Avoid the old pictures to get approved under the gold loan eligibility criteria.
- Income Proof
This is an additional requirement. It can be a statement of an existing salary account, a payslip, an income tax statement, Form 60, or a combination of permanent account data, such as your account number or Form 60, as stated by the Income Tax Act of 1962.
Once the eligibility requirement and the basic documentation needs are fulfilled with a minimum CIBIL score, the applicant can submit gold for the loan process. The loan is disbursed usually within 48-72 hours, making it the best option for all kinds of immediate personal needs.
Gold loans are the best when an individual is looking for quick funds. As the gold loan eligibility criteria are simple and basic, they can be easily applied by any individual. To know more about gold loans and various other pre-approved offers, visit the Bajaj Finserv website. Compare the various options, interest rates, and check for the one that is best suited to your needs before applying.
