Gold Loan Eligibility: Basic Requirements
Gold Loan Eligibility is something that you should understand before applying for a gold loan. A gold loan can be described as a secured loan where you will pledge your gold jewellery/ornaments with the bank or NBFC or any other Financial Institution and get a loan amount in return.
Biggest advantage of this loan type is that the process is generally simple. Because gold is kept by lender as the security,;the approval process can be quicker than a personal loan.
Gold Loan Eligibility: Basic Requirements
- Age
Borrower must be adult to get a gold loan. The general minimum age requirement is 18 years. However, some lenders may have their own age limit criterias. - Gold Ownership
The gold you pledge must be owned by you or a family member. The lender may accept gold jewellery, ornaments and sometimes coins. Each lender has different rules. - Gold Purity
Gold purity also plays an important role in your eligibility for a gold loan. The lender checks the purity and weight of your gold. The loan amount is decided based on the value of your gold.
Gold of higher weight and higher purity can also be eligible for a higher amount of loan.
Gold Loan Eligibility: Basic Requirements
- DOCUMENTS REQUIRED:
Basic documents are required to avail a gold loan. Such documents include Aadhaar card, PAN card, address proof, passport-size photo and bank account details. The document
requirement can vary from one lender to another. Therefore, it is better to check the official list of documents required by a lender before submitting an application for obtaining a gold loan
from that lender. - INCOME REQUIREMENT:
There is no compulsory income proof for gold loans since the loan is given against your gold. However, for higher loan amount, the lender can verify your income or repayment capability.
Salaried and self-employed persons, farmers, homemakers and small business owners can all eligible can apply for gold loan as long as you meet your lender’s criteria. - Credit Score.
As gold loan are secured loans so people having bad credit score can apply for gold loan, Still few lenders may check your credit history also. Timely payments are very important to repay the loan because in case you make a late payments you may have pay additional charges and risk of getting the gold auctioned.
Repayment Capacity
Before taking a loan check your repayment capacity, just because you qualify does not mean you necessarily borrow the highest amount possible from the lender.
Take a sufficient loan that you will be able to repay by the due date. This will aid in keeping your gold secure and preventing you from being burdened by financial stress.
Gold Loan Eligibility: Basic Requirements
Gold Loan Eligibility: Basic Requirements
Conclusion
Gold Loan Eligibility is usually easy and simple to obtain, but before applying for a Gold Loan you should keep in mind the Age, Documents, Gold Purity, Charges, Interest Rates and Repayment Terms.
Be sure to choose a lender that you trust, keep your loan receipt in a safe place and read through the loan agreement before you sign it.
Disclaimer: This article is strictly for informational purposes only. Gold loan rules, eligibility criteria, fees, and interest rates may differ from lender to lender.
Gold Loan Eligibility: Basic Requirements