Eligibility for Gold Loans

Firstly to define a gold loan in common terms, it can be told as loan one offers against their gold articles which they hand it over to any of the lending institutions. Now do not mistake the lending institutions just to be the banks, there are also certain Non-banking finance companies which readily offer people with the gold loans. Certain factors like the time period of tenure for the loan and interest rates of the loans may vary between general banks and non-banking finance companies. 

Accordingly a person can compare between them and go for whatever is most preferred by them and proceed further to get themselves granted with a gold loan. Now, as we all know gold loan is a secured loan and so when a customer can offer his/her ornaments or jewellery of gold as collateral to whatever lending institution he or she chooses. To look at those eligibility factors, which can offer an individual with a Gold Loan are listed below, so take a look and get to know, if you possess the following ones.

A first major and most important factor to be considered by everyone who wishes for a gold loan is their age. The age factor considered to be right or eligible is around 18 years to 75 years of age. This age group can have a secured gold loan that they wish for. Next comes what he or she is by their Profession,, and here is good news, there are no restrictions on the professional life of any individual who wishes for a gold loan. He or she can be a self-employed person or even working for a certain company or any sort of organisation and still be able to secure a gold loan. Town business, they are still considered eligible. To mention further all the ones into farming and trading can also avail for a gold loan. As this is made clear, let us now consider regarding the paper processing that is nothing but certain documents which can be accepted and they are listed as follows,

• KYC documents - These are made mandatory for the security purpose,. They can include documentation such as Passport, Driving License, Voter ID, Aadhar card, PAN card etc and any among these are accepted.

Now, it revolves around the loan amount and tells us that the range from which loan amount can be considered is around ₹ 1,500 onwards. Accordingly, one can arrange his or her gold ornaments, Gold coins, etc, and can avail of the above-mentioned loan amount. 

After that’s all looked after and arranged, before issuing the loan,,,,, the purity of the gold is checked and is made mandatory for it to be around and maintained up to 18 Karats. So only then, the loan is offered in return. Next thing is the gold loan interest rate, and this might not be the same, in every case that is it differs from bank to bank so you can choose accordingly. So similar the above-stated eligibility might exactly not be the same and can vary in a certain case from one lending institution to another and so on.

Also read for more update: Gold Loan for Debt Repayment