A Gold loan is one of the easiest loans to apply as compared to the other loans. The eligibility criteria of a gold loan is simple as compared to the other unsecured loans. Anyone can apply for a gold loan subject to certain conditions.
What are the necessary things required to obtain a Gold Loan?
The eligibility criteria of a gold loan or any other loan describes all the necessary things that are required to apply for a gold loan. Also, the eligibility criteria of a gold loan is really simple as compared to the other loans. The best part about a gold loan is that anyone can apply for a gold loan, any person who has some gold jewellery or gold coins is eligible to take a gold loan. Most of the people know a bit about the credit of a gold loan, its eligibility criteria, documents required, etc. The eligibility criteria of a gold loan is really simple so that any person who possesses some gold coins or some gold jewellery can apply for a gold loan and is eligible for a gold loan. As a borrower, you do not need to give any income proof documents like the salary slips or the bank statements. Also, eligibility criteria for a gold loan varies from bank to bank. The EMI can be calculated with the help of a Gold loan EMI calculator. Following are some of the basic guidelines of a person who can apply for a gold loan from any bank or any other financial institution.
- Age of the applicant:
Any citizen of India who is above the age of 18 years and below the age of 70 years can apply for a gold loan. He is eligible for a gold jewellery mortgage. However, most of the banks also demand a co-borrower if the age of the applicant is above 70 years.
- Profession of the applicant:
Most of the banks and the financial institutions in India offer gold loans or jewellery mortgages to the salaried employees, self-employed professionals and the businessmen. It also includes the farmers and traders.
- Accepted quality of the gold:
For the eligibility of the gold loan or the jewellery loan, a borrower can deposit the gold in any form like jewellery, some coins or as ornaments.
- Purity of the gold- The minimum purity of the gold that is deposited must be between 18 karats to a maximum of 22 karats or 24 karats. The minted gold coins are only accepted if they are 24 karats and a maximum weight of 50 grams. The approved amount of finance is determined mainly by the weight and the current market value of the gold that is deposited.
Documents That are required for a Gold loan:-
The following are the documents that are required for a Gold loan are:
- Identity proof:- Pan card, Aadhar card, Passport, Voter ID.
- Address proof:- Driving license, electricity bill, passport, rent agreement, gas bill, etc.
- Additional items:- two passport size photograph.
Some of the banks also ask for the income proof documents:-
- Salary slips ( of the last three months)
- Bank statements ( of the last three months)
- Form 16 of the last financial year
What is a Gold loan?
A Gold loan is a loan that is offered by the banks or the non-banking financial institutions to the customers who are in need of a loan. By availing a gold loan, a person can make use of the gold that has been lying in his locker for ages. Now, you can not only look good by wearing gold but can also make smart use of it with the help of a gold loan. You do not have to sell your gold to get some money. Here, in a gold loan, you just need to provide that gold to the bank or to the money lender as a security or collateral and after the successful repayment of the loan, you will get your gold back in no time.
Why should you apply for a Gold loan?
- It is really easy to apply for a gold loan. A person can also apply online for a gold loan.
- The eligibility criteria is really simple in a gold loan.
- There is minimal documentation in a gold loan. SBI Gold loan provides minimal documentation.
- Your gold will be in safe hands.
- You can also get a discount if you provide extra collateral.
Also Read:- Features that celebrates Gold Loan borrowers
