Gold possesses an immense monetary value that tends to sky-rocket, allowing it to be leveraged as a valuable funding source. However, while the sale of gold jewellery can fetch a hefty amount, it also leads to the loss of the asset. Alternatively, pledging this tangible asset on a mortgage to collect a substantial sum can prove to be more beneficial. Repayment of the funds availed will let you recover your assets. Nonetheless, to apply for this advance, you must comply with a set of gold loan eligibility requirements. A prime benefit of gold loans is their simple application process. Therefore, if an individual meets the age quota and provides the necessary documents, he/she can easily benefit from a gold loan.
Gold loan eligibility criteria to be aware of
If any individual plans to apply for a gold loan, he/she must first meet these criteria set by any financial institution or NBFC. Usually, the eligibility standards remain similar across different institutions.
Here is a list of factors you must comply with to be eligible for a gold loan:
- An applicant must be between the ages of 21 and 70 years. Following this information, he/she must present an age and ID proof.
- Applicants must be salaried employees at an MNC, public, or private limited company. They can also be self-employed, traders, farmers, or businesspersons.
- The individual must be an Indian resident.
Meeting these standards is sufficient to qualify for a gold loan eligibility. However, they must also present the proper documents to receive approval upon application.
Documents necessary for gold loan eligibility
Here is a list of some of the gold loan documents mandatory while applying for a gold loan. These documents will affect the loan officials’ decision on whether they should sanction the loan amount or not.
- Passport size photographs
- Address proof
- Identity proof
- Duly filled application form
- Form 60 or a PAN card
- Signature proof
- Age proof
- Post-loan disbursement document
Providing these documents along with your gold deposit should be enough to gain access to monetary funding.
Gold loan vs personal loan: Which to choose?
At the time of medical emergencies or business expansions, many individuals lean towards personal loans. While it is a lucrative funding medium, it might not be as effective as a gold loan.
Following are some of the distinguishing factors between gold loans and personal loans:
1. Processing time
Gold loan processing takes only a matter of a few hours. After receiving approval on a gold loan application, the person receives the loan amount immediately.
Personal loan applicants must provide ITR forms and other documents for the loan application process. It usually takes from 2 to 7 days to process the application.
2. Loan amount
The amount receivable under a gold loan is dependent on the LTV ratio. Therefore, the purity and the market value of the gold decide the loan amount the institution will sanction.
A personal loan is an unsecured funding medium, and applicants can avail funds up to a certain limit under it.
Gold loans come with a short tenor allowing borrowers to get rid of their debt without hassle and. The personal loan tenor period is dependent on the loan amount received by the applicant. It is usually longer than a gold loan.
When opting for instant financing, consider choosing a gold loan from institutions like Bajaj Finserv. They maintain industry-safety protocols that protect your gold deposit from damage. The NBFC also provides a part-release facility to individuals upon repaying an equivalent amount.
Be it business expansion, medical emergency, or any other high-value purchase, a standard gold loan will fetch you the monetary funding necessary to fulfil your requirements.