Loan Against Gold in India
A gold loan is a secured loan that is backed by a gold object or items. Because of its immediate availability, it is the most popular borrowing option in times of need. Even though there are other investment and financing options available today, the value of a gold loan cannot be overstated. A gold loan is an excellent way to meet an urgent financial need. It also acts as a Credit Health Tonic, as simply storing your gold in a safe and obtaining a low-interest loan can help you improve your credit history. Just as you would check the gold rate in India before making a new gold purchase, you should also check your CIBIL score before applying in order to know your eligibility for a gold loan before applying.
Eligibility for Gold Loan
Anyone who owns gold jewellery is eligible for the loan. It is, however, only available to people over the age of 18. By submitting a piece of gold jewellery to the branch, you can obtain the loan (within the karat range of 18K to 24K). The price of that gold jewellery may fluctuate in response to changes in the Indian gold rate.
Documents Required for a Home Loan Application- Because this is a secured loan against a gold item, the paperwork does not include any proof of income.
As a result, only the basic KYC documents listed below are required:
- Two passport size photograph
- ID Proof such as Driving Licence/PAN Card/Form 60/61/Passport Copy/Voter ID Card/Aadhaar Card/Ration Card.
- Address Proof such as Driving Licence/Voter ID Card/Ration Card/Aadhaar Card/Passport Copy/registered lease agreement with not older than 3 months utility bills in the name of landlord.
How to Apply?
A gold loan, like any other loan, can be obtain online as well as offline. Despite the fact that the majority of customers prefer the offline approach, lenders are now providing gold loan options online as well. Simply go to the lender’s official website or compare online and fill out the required information. The following information must be enter into the online application form:
- Full Name of Borrower
- Email Address
- Phone Number
After you submit the form, a representative will contact you. Your application will be process further after the gold and personal information you provide are verify.
Calculation of Loan Amount
The type of security submitt determines the amount of the gold loan. The maximum loan amount available against a gold item is determine by its weight and current market value at the time and date of application. Other factors such as the type of gold and the borrower’s ability to repay and CIBIL score are also consider. It is important to make a CIBIL score login in order to keep a regular check on your credit score. Furthermore, coins and bars are more valuable than jewellery, with up to 80% of the value of gold provided after appraisal. A gold loan becomes not only more accessible, but also has a higher loan-to-value ratio with this feature.
Once the gold has been validate by the loan provider and the application form has been fully complete, a gold agreement is sign. The lender receives the gold, and the loan is disburse. When the documentation is complete, the loan is disburse immediately. Because all other loans take at least a day to disburse, this is the quickest way to obtain a loan. Almost all lenders accept payments via the internet. The repayment procedure for an online gold loan is simple. To access the payment desk and complete the online payback process, enter your login ID and password from your online application. Cash, EMI, check, and DD are all acceptable methods of payment. The loan is process for disbursement only after proper verification of the gold supply. If it is discover that the gold item is false or stolen, that a bill is missing, or that the paperwork is not authentic, the chances of rejection increase. Otherwise, because the loan is grant on the basis of gold grade and basic KYC documentation, there are few chances of rejection.