Gold Loan with Only KYC Documents: Everything You Need to Know

According to the Reserve Bank of India guidelines, you can apply for a Gold Loan using your standard Know Your Customer (KYC) documents. Since Gold Loan is a secured form of loan, the gold you pledge as collateral reduces the lender’s risk, simplifying the application process. Continue reading to know more about this!

Can you apply for a Gold Loan with only KYC documents?

Yes, you can apply for a Gold Loan by using only your KYC documents. For the lenders, your pledged gold serves as the primary security for the loan. Lenders can review your credit history and repayment capacity during the loan verification process and may request additional documents.

Essential KYC Documents for a Gold Loan Application

As per RBI guidelines, it’s important to complete KYC to verify your identity and address, prevent fraud, and ensure transparency.

Provide the following KYC documents for the Gold Loan application:

Proof of Identity

Any one of these officially valid documents:

• Passport
• Driving licence
• Proof of possession of Aadhaar number (in any form issued by the Unique Identification Authority of India)
• Voter’s Identity Card issued by the Election Commission of India
• Job card issued by NREGA, duly signed by an officer of the State Government
• Letter issued by the National Population Register containing details of name and address

Note: If your name has changed after the officially valid documents were issued, submit a marriage certificate issued by the State Government or a Gazette notification.

Also Read: Gold Loan Eligibility Criteria in India: Documents, Requirements & Process

Proof of Address

Submit any one of the above-listed documents. If it does not contain your current address, any one of these documents can be submitted as valid address proof:

• Utility bill not more than two months old (electricity, telephone, post-paid mobile phone, piped gas or water)
• Property or Municipal tax receipt
• Pension or family pension payment order (PPO) issued by Government Departments or Public Sector Undertakings, if it contains the address
• Letter of allotment of accommodation from employer (State or Central Government Departments, statutory/regulatory bodies, Public Sector Undertakings, scheduled commercial banks, financial institutions or listed companies)
• Leave and licence agreement with such employers, allotting official accommodation

PAN Card

KYC verification for Gold Loan applications typically requires a PAN card. Since most Gold Loan amounts exceed ₹50,000, they trigger the RBI’s KYC mandate, and the PAN card serves as a primary financial identifier for compliance.

Also Read: Do You Need a PAN for a Gold Loan? Key Documents Explained

Are Any Other Documents Required for Applying for a Gold Loan?

Along with the basic KYC documents, you must provide proof of ownership for the gold you are pledging as collateral. As per RBI guidelines, lenders cannot approve loans where ownership is doubtful.

If you do not have the purchase bill or proof of ownership, the lender may ask you to provide a self-declaration explaining ownership of the gold and complete any additional KYC requirements. Once ownership is confirmed, the lenders check gold’s purity and weight. This valuation plays a key role in determining the final loan amount and the Gold Loan interest rate.

Also Read: Everything You Need to Know About Instant Gold Loan

To Conclude

Since they are secured, gold loans are a viable option in emergencies when you need to access funds instantly. All you need to provide are the KYC documents, the gold you’re going to pledge, and proof of ownership. Poonawalla Fincorp’s gold loans have a straightforward process that ensures a quick and hassle-free experience for you.

FAQs

What is KYC, and why is it mandatory for a Gold Loan?

KYC or ‘Know Your Customer’ is a verification process mandated by the RBI for all financial institutions. This process is crucial as it helps prevent fraud and ensures that the loan is given to the rightful individual.

Is income proof required when applying for a Gold Loan?

No, income proof, such as salary slips or bank statements, is generally not required for a Gold Loan. The loan approval is based on the value of the gold you pledge as collateral, not on your income.

What is an online Gold Loan?

An online Gold Loan is a secured loan where you apply and complete most formalities digitally while pledging your gold as collateral. The actual gold is submitted at a branch or authorised location, but the application, approval, and tracking are done online.