To apply for a Gold Loan in India, you must fulfil specific eligibility conditions such as age, Indian citizenship, and ownership of eligible gold jewellery. In addition to these requirements, you’ll need to provide essential documents for verification. This guide walks you through all the requirements, what documents you’ll need, and how to apply for a Gold Loan.
Eligibility Requirements for Gold Loan in India
Gold Loan eligibility is straightforward, as it's a secured product backed by your gold jewellery. Here's what you broadly need to qualify:
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Indian citizenship: You must be a resident Indian.
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Age criteria: Typically between 18 and 75 years, though some lenders may extend this range.
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Gold form: Gold jewellery or ornaments are accepted. Gold bars or bullion are not eligible. Certain gold coins (sold by banks and of 22 carat or higher purity) are also eligible.
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Gold purity: Your jewellery should be between 18 and 24 karats.
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Ownership: The gold must belong to you or an immediate family member, with proper proof of ownership provided upon request.
Documents Required
To complete your application, you need the basic KYC documents, such as:
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Identity proof: Aadhaar Card, PAN Card, Passport, Voter ID, or Driving Licence.
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Address proof: Aadhaar Card, Passport, utility bills, Driving Licence, or similar documents.
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Passport-sized photographs: Recent photos that meet sizing requirements.
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PAN card: May be mandatory for loan amounts exceeding ₹5 lakh, in line with regulatory norms.
Also Read: 7 Benefits of Taking a Gold Loan
How to Apply for a Gold Loan
Applying for a Gold Loan is quick and hassle-free, especially if you have all your documents and collateral ready.
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Start your application online: Go to your lender's website and select the Gold Loan option. Click on 'Apply Now'. Alternatively, you can visit a branch to start the process in person.
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Complete the digital form: Provide your personal and loan-related information in the form.
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Submit KYC documents: Submit your identity and address proof for verification.
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Review your loan eligibility and offer: After submitting your details, the lender will assess the purity and weight of your gold and generate a loan offer based on the evaluation.
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Receive the loan amount: Once you accept the loan offer, the approved amount will be transferred directly to your bank account. The collateral will be held by the lender for the duration of your loan.
Also Read: Why Choose Poonawalla Fincorp for Your Gold Loan Needs?
To Conclude
By understanding the Gold Loan eligibility criteria, the documents required, and the loan process, you can easily avail a Gold Loan. With minimal paperwork, competitive rates, and quick disbursal, Poonawalla Fincorp offers Gold Loans, a reliable choice to unlock the value of your gold.
FAQs
Does my credit score affect my eligibility for a Gold Loan?
No, your credit score typically doesn't have as much impact on your Gold Loan eligibility. Since it's a secured loan backed by gold jewellery, lenders focus on the collateral's value rather than your credit history.
Can I use gold coins or bars for a Gold Loan?
Most NBFCs require only gold jewellery or ornaments to be pledged. Gold bars and bullion are not usually accepted for pledging, while only certain gold coins are allowed. But you should confirm with your lender to better understand the terms.
How can I determine the maximum loan amount I can get from a Gold Loan?
The maximum loan amount you can receive depends on the weight and purity of the gold you pledge. Lenders typically offer up to 75% of the assessed value, with the actual loan amount based on market conditions and the final value of your gold.
How does a gold loan rate compare to conventional loans?
Gold Loans usually offer attractive interest rates when compared to conventional loans because their value is backed up by gold. So, they are the most expensive ones for short-term financial needs.
How do the prevailing market conditions affect my Gold Loan?
The prevailing market conditions, particularly gold prices, directly impact the value of your pledged gold. When gold prices are high, you may qualify for a larger loan amount or better gold loan rates.
What is the minimum loan amount for a Gold Loan?
Lenders may impose a minimum loan amount, which varies by institution. However, this threshold is typically low, allowing borrowers to access small loans for urgent needs.
What is the loan tenure for a Gold Loan?
Gold Loans typically offer flexible loan tenures ranging from a few months to several years, depending on your repayment capacity and loan terms.
How is the final value of my gold determined for the loan?
The final value of your gold is determined by an evaluation process that assesses its weight, purity, and current market value. This value is used to calculate the loan amount, subject to the loan-to-value ratio.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply