A financial emergency can emerge at any time, so knowing about the various forms of secured and unsecured loans available in the market is a must. The most common loan that an individual usually opts for is a personal loan, but it is unsecured and requires a high CIBIL score. Therefore, knowing about the alternative is essential. The best loan that can be dispersed with minimum time and carries a low rate of interest rate is the Gold loan. So, let’s look at the gold loan eligibility and what are the various gold loan documents required.
Know About the Gold Loan
The gold loan is a secured loan offered to the borrower against the gold by Financial Institutions or other loan providers. For the acceptance and processing of the loan request, one can only submit the 18 to 24 carat of gold. The usual amount of the gold loan sanctioned based on the gold quantity, current market value, and gold loan documents are around 90% of the total value of gold articles. The loan amount and the gold loan rate are based on the gold items the borrower pledges and the time
Eligibility For Gold Loan
The gold loan is one of the loans that the majority of the loan seekers can attain. This financial option is also available to those who fail to maintain a high CIBIL score. At the same time, a gold loan can help build the CIBIL score if paid on time and there are no lapses in EMIs.
The primary gold loan eligibility criteria include the following conditions:
- The applicant should be between 21-70 years of age.
- The loan usually comes with multiple repayment options.
- The applicant should have a savings account.
- The applicant should be working either salaried or self-employed and should have relevant proof for the same.
Documents Required For Gold Loan
Apart from the above gold loan eligibility, knowing the complete set of gold loan documents is essential. The critical documents required are as follows:
- KYC documents
The KYC refers to Know Your Customer. It is quite a common aspect in the financial area linked to the customer identification process, which involves gathering customer information based on the identity and address proof of the customer. The set of documents collected under KYC helps keep track of individuals’ financial conditions and avoids the chances of any fraudulent practices. The KYC has two sets of documents included:
Proof of identity is the photo identity card, including Aadhar Card, PAN Card, Voter ID, Driving License, Passport, or any other photo ID issued by a state or central government.
Proof of Address is the address document that includes Aadhar Card, Voter ID, Driving License, Passport, utility bills, or any other address document issued by a state or central government.
- Recent Photograph
The applicant usually needs to submit a set of 2 photographs to process the gold loan request. The photographs must be the latest, usually not more than 3-6 months old, and colored with a light background.
- Income Proof
The income proof is usually asked at a later stage if required. These can be the statement of your existing salary account, salary slip, income tax statement, Form 60, or a combination of details of your permanent account, such as your account number or form number 60, as defined by the Income Tax Act of 1962.
Benefits of Gold Loan
The entire process of applying for the gold loan and checking the gold loan eligibility is straightforward. The benefits of a gold loan are:
- It is the fastest way to get funds in an emergency.
- The repayment schedule is based on applicant convenience.
- The loan amount depends on the value of the security.
- The interest rate is comparatively low.
- It helps to build the CIBIL secure while ensuring your gold is safe.
Based on the gold loan documents, the value of gold, and the tenor, the gold loan interest rate is calculated. So, if you are planning to apply for a gold loan, start with accessing your gold loan eligibility. You can approach leading lenders like Bajaj Finserv for hassle-free processing and minimal paperwork.