Gold is a valuable metal that is widely utilized for various applications, including industrial, commercial, and investment purposes.
In this kind of loan, the consumer offers his/her gold jewellery to the lender as security. The loan amount is then sanctioned by the lender based on the market value of the collateral. In this article, we will discuss how to apply for a gold loan.
It’s a fast and straightforward solution to meet one’s financial demands. Whether it’s a wedding, a family trip, or your child’s further education, we’ve got you covered.
These loans are offered at a cheaper interest rate by financial institutions and NBFCs. The application for gold loan online is simple, fast, and convenient. You may verify your gold loan eligibility and EMI while applying online.
How do gold loans work?
After checking the documentation, the lender examines your gold and approves a loan amount. The lender then approves the loan amount based on the assessment.
Who is eligible to apply for a gold loan?
To be qualified for a gold loan, you must meet the following requirements:
- You must be either salaried, self-employed, businessman, farmer, or a trader.
- Borrower must be between 21 and 60 to qualify for a gold loan.
- You must provide your KYC papers, which are outlined below in detail.
How to apply for a gold loan?
Jewellery credits are a convenient way to meet short-term monetary needs. To complete the process, you will be required, after some verification, to go to the branch in person.
Every financial organization follows a similar method. We’ll talk about how to get a gold loan in Coimbatore. Here’s how to do it:
Fill out the online application: First, you must complete the online application. At this point, basic information such as name, phone number, email address, date of birth, Pan number, desired financing amount, and pin code will be requested.
Verification: You will be contacted by a representative from the university to confirm your information. The representative will walk you through the whole process and point you in the right direction, as to what you are supposed to do next.
Visit branch: You must bring the required documentation and the gold, to the branch, for verification. After the verification, your funds will be disbursed immediately.
Disbursement of the loan: After that, you will get a financial statement with a credit for the amount of money you borrowed.
As you can see, the technique is pretty straightforward. You will not need to go from pillar to post to get jewellery financing. It’s an easy procedure to follow. When the time comes, you should utilize the gold, you purchased as an investment.
Documents required for gold loan application
Only a few documents are needed for jewellery credit. You must submit the paperwork in person at the branch closest to you. The following is a list of documents needed for a gold loan:
KYC documents: Know Your Customer (KYC) is a procedure in which financial organizations confirm your identification and analyze your creditworthiness.
They assess the risks associated with extending credit to you. An Aadhaar and a PAN card would be required for KYC.
Address proof: Since phone numbers and email addresses may frequently change, it is preferable to communicate with you at your home address. Submit your driver’s license, passport, or gas bill together with the gas book for address verification.
Financial records: Financial institutions must verify your cash flow and liquidity; therefore, you’ll need to produce specific financial paperwork. You’ll need to provide your most recent six-month financial statement for this.
Options for repaying the gold loan
Your lender determines how you will repay your gold loan. Most lenders need you to pay the interest each month and the principal after the loan term.
Gold loans may be the finest financial answer when you demand immediate cash. These are some of the most affordable options when it comes to loans.
Furthermore, when you apply for a gold loan, they demand a few papers and easy qualifying conditions to get a loan. As a result, compared to others, they are one of the top choices.