Financial crises can arise at any point in time, and the first thing that comes up is the need for a loan. Though various kinds of loans are available in the market, a loan against gold is the fastest and simplest to get. With low documentation needs and simple eligibility criteria, the gold loan interest rate is favorable as well. Available with all the banks and NBFCs, the gold loan process is simple, making it a preferred option.
Before knowing the top reasons why a gold loan is a top pick among borrowers looking for funds is important to know the same basics.
Gold Loan And Its Eligibility
Gold loan is one of the most common loans that individuals avail. It is a secured loan offered against gold. The gold loan process is quite straightforward, with the least documentation requirement, making it a favorable option for those in immediate need of funds.
The basic eligibility criteria for the gold loan include:
- The age of the applicant’s should be between 18 to 75 years old.
- The applicant must be an Indian national.
- The candidate must be either salaried or self-employed and provide the necessary documentation if required.
- If the applicant is over the age of 70, a co-applicant may be necessary in certain cases.
- The gold promised for the loan should be at least 18-24 carats.
In addition to this basic loan against gold requirements, the gold loan process requires the following documents as well:
- Proof of identity like Aadhar Card, PAN Card, Voter ID, Driving License, Passport, or any other photo ID issued by a state or central government.
- Proof of Address like Aadhar Card, Voter ID, Driving License, Passport, utility bills, or any other address document issued by a state or central government.
- 2 recent passport photographs on light background
- Income proof may be required in some cases.
Once the documents and gold are submitted, the loan against the gold interest rate is calculated based on the value of gold. Following the simple valuation process, disbursement of the gold loan is quick and simple too.
Reasons To Consider Gold Loan As A Savior
In recent years, the demand for loans on gold has increased multifold. Today, it is considered one of the best loans, with a simple procurement process making it a great option. The top reasons due to which gold loan is considered to be superior as compared to other loans are as follows:
- It is considered to be the simplest and quickest loan that one can obtain with the least documentation.
- It is available to individuals even with low CIBIL scores and offers an opportunity to develop a high CIBIL score.
- The documentation requirement is basic, including identity proof, address proof, passport size photographs, gold for the pledge, and sometimes income proof.
- It is available to businessmen, salaried professionals, or even housewives planning to start something new.
- It can be used for both personal and professional use without making any prior declaration for the end-user.
- The time taken for the loan against the gold process is the least. Usually, the gold loan is disbursed within 48-72 hours of completing documents, making it the most efficient choice.
- There is no clause for pre-payment penalties or charges which makes gold loans efficient for all.
- The valuation charges for the gold are quite low. Also, when it comes to the low-interest rate on the gold loans, the rate is lower than that of the personal loan in most cases.
- The gold loan is also available for agriculturists at a very low rate.
When it comes to loans, borrowers usually look for the simple option to acquire and are available quickly. While various loans are available in the market, a gold loan can be availed with the least documentation requirements and time. Also, the low interest gold loan depends on gold, which allows individuals to acquire higher-value loans at low interest.
With the simple interest rate process available online by leading lenders like Bajaj Finserv, it is even simpler to apply. Check out the Bajaj Finserv website and compare various options and offers to get the best deal regarding amount, tenor, and interest.
