Gold Loans are a famous financial product in India due to their easy accessibility and quick processing time. These Loans are secured against gold, making them more accessible to those with low credit scores or those who cannot get other Loans. Let us understand the eligibility criteria needed to get the Loan:
Age criteria
The borrower should be at least 18 years to apply for a Gold Loan. However, some lenders may have a higher age limit, and the maximum age limit can vary between lenders
Gold ownership
The borrower should be the rightful owner of the gold they wish to pledge as collateral. The gold should be in the borrower's possession and provide proof of ownership
Type and quality of gold
Generally, gold coins, bars, and jewellery are acceptable as collateral. Some lenders may have specific requirements regarding purity. This makes it essential to check the lender's requirements before applying for a Gold Loan.
Loan amount
Depending on the gold value pledged as collateral, anyone can approve the Loan amount through Gold Loans. Most lenders offer Loan amounts that vary from thousands to lakhs of rupees. However, the Loan amount changes depending on the pledged gold value.
Credit score
Since Gold Loans are secured, lenders do not typically consider the borrower's credit score. Those with low credit scores can also consider a Loan against Gold.
Income
Specific lenders could ask for income documentation to assess the borrower's potential for repayment. It is valid for Loans that are of large amounts. However, since most lenders do not have tight income limits for Gold Loans, many may consider them.
Citizenship
Borrowers should be Indian citizen to apply for a Gold Loan in India. Some lenders may also demand that the borrower resides in the place where the Loan is requested.
Documentation
Lenders may have different requirements for supporting documents when applying for Gold Loans. However, most require documentation like identification, address, and gold ownership proofs. Additionally, some lenders seek extra documentation, such as income proof. The documentation gets submitted on the borrower's preferred Banking app or their lender's website
Conclusion
Gold Loans are a popular financial product in India due to their easy accessibility and quick processing time. The eligibility criteria for Gold Loans are mentioned. Applying for a Gold Loan online is an easy option for those who wish to apply at the ease of their home or office.
Gold Loans can be considered convenient for those who want quick access to funds, especially in financial emergencies. Besides Gold Loans, a Personal Loan also provides immense financial support to people during emergencies.
