With a gold loan, a borrower may take out a secured loan by using gold jewellery as collateral. It is one of the fastest and simplest methods to receive money for personal, commercial, and other needs. The procedure of gold loans for senior citizens is straightforward. The lending organization will provide you with a gold amount depending on the purity and weight of your gold jewellery.
Similar to any other sort of loan, a gold loan may be returned in monthly payments over a period determined by you, with the gold loan rate serving as a guarantor. They will need a few papers from you, and they are well-known for their speedy disbursement.
What are the procedures for obtaining a gold loan?
The entire technique of the Gold Loan would be necessary to understand before we can discuss how the Gold Loan functions. There are a few processes needed in obtaining a gold loan. You may read on to learn more about each of these process stages in more detail.
Gold loan application
To choose a loan amount, you must first apply for a Gold Loan with a lender. Before applying for a gold loan, you should research and evaluate the many lenders that provide gold loans and then select the one that best meets your needs, such as reduced interest rates, a sufficient loan-to-value ratio, a flexible repayment schedule, and so on.
Gold submission
If you apply for a gold loan in Jaipur online or offline, you will be required to provide the lender with security or collateral in the form of gold jewellery or coins. The most necessary item to have to qualify for a gold loan is gold jewellery. There is no alternative way to complete this task.
Gold evaluation
The third and last stage is evaluating your gold once you’ve given it to your lender. After receiving your gold jewellery, the first thing a lender does is determine the total worth of your gold. When the lender does an in-house evaluation, they will figure out how much the gold is worth now. The outcome of this appraisal procedure will determine the amount of loan you will get in exchange for your gold jewellery. The higher the worth of your gold, the greater the quantity of money you will be able to borrow. As previously stated, you may get a loan for up to 90 percent of the gold’s market worth.
Documents required
The documentation of gold loan details required to complete your loan is listed below.
- Gold Loan Application Form
- Two photocopies of the borrower (s)
- PAN and Aadhaar cards are examples of proof of identity
- Voter ID or ration card may be used as proof of address
Gold loan eligibility
- Minimum and maximum age: 21 years – 60 years
- Employment type: Individuals who are salaried or self-employed are eligible. To satisfy their operational cash needs, businesses are increasingly turning to gold loans. In reality, homemakers and elderly persons who cannot get other loans due to a lack of evidence of income may readily obtain gold loans.
- Quality of gold: The carat weight of gold jewellery should be between 18 and 24 carats. If you want to know about the cost of 20-carat jewellery, double the cost of 22-carat jewellery by a ratio of 20/22.
- CIBIL score: When it comes to obtaining a gold loan, lenders do not look at CIBIL ratings. Your repayment history for a gold loan is indeed considered towards your CIBIL score, and as a result, it might be beneficial in raising your CIBIL score.
- Work history and income proofs: lenders do not evaluate your employment or company stability before approving a gold loan. To apply for this loan, you need to provide standard KYC papers like proof of residence, identification, and an Aadhaar card.
As you can see, a gold loan for senior citizens is a cost-effective, simple, and hassle-free option to fulfil an unexpected financial need. Our gold loan eligibility calculator makes calculating gold loan per gram eligibility simple.
You need to provide your name, phone number, monthly income, home address, and gold weight. You will get qualified for lender offers based on your inputs.
