During economic crises, one can face an immense cash crunch and financial difficulties.Hence, many willing borrowers are looking for an alternative financial avenueto meet the immediate monetary requirements. A gold loan is a viable option to secure credit against pledging gold jewellery to the lender.
Although, makesure to consider a few gold loan eligibility criteria before applying for a gold loan in India to make the experience of loan approval hassle-free.
Gold loan eligibility criteria
The flexibility in eligibility parameters makes a gold loan suitable option for acquiring credit. Take a look at the following eligibility criteria:
● Any salaried, self-employed Indian citizen can apply for a gold loan.
● Individuals aged between 21 and 70 years are eligible.
● The minimum purity of your collateralised gold ornaments must be 18 karats. It can go up to 22 or 24 karats. An approved loan amount depends on the market value and weight of the gold and the applicable LTV rate.
Documents required for a gold loan
The documentation process varies with each bank. Nevertheless, keeping these following common gold loan documents ready will help in the quick disbursal of loan amounts.
● Identification proof - Aadhaar card, Voter ID,PAN card or passport
● Residential proof - Ration card, passport, bank account statement, Aadhaar card, etc.
● Some financial institutions often ask for additional documents like passport-sized photographs of an applicant. Also,some may ask for income proof like salary slips or bank account statements of the last 3 months or Form 16, etc.
Meeting the eligibility criteria is crucial for a quick disbursal of the loan amount. Along with it, make sure to discuss with your lender regarding the required documents. Keep those documents ready to avoid delays in loan disbursal.
