Banks Providing The Lowest Interest Rates On Gold Loans

How to apply for a gold loan?

Like any other loan, via both online and offline, a gold loan can be applied. While the offline procedure is typically chosen by most individuals, lenders often offer online gold loan alternatives. You just need to access the lender’s official portal and fill in the basic specifics online. The official will come back to you once you have submitted the loan application form. Your application will be further verified following the authentication of the gold submitted by you and also your personal information.

Eligibility and documents required

The loan can be used by someone who holds gold ornaments. Only individuals above the age of 18 years are considered for it, though. By submitting a piece of gold jewellery within a karat range of 18K to 24K at the branch, the eligible individual can use the loan. By submitting a piece of gold jewellery within a karat range of 18K to 24K at the branch, the eligible individual can use the loan. As this is a secured loan against a gold asset, no proof of income is required. Therefore, only basic KYC papers, which are passport size photographs, ID proof and address proof, are required in order to apply for the loan.

How gold loan amount is calculated?

On the basis of the type of security that is placed, the amount of the loan is determined. At any particular time and date, the maximum loan amount you will get against the gold product relies on the weight and current market value of gold. Other considerations are often taken into account, such as the type of gold and the borrower’s repayment potential.

Importance of CIBIL score while applying for a gold loan

To get cheaper rates on loans, having a strong credit record is always beneficial. That being said, some individuals who use this loan are not even employed, but the eligibility to get the loan is impacted by having no credit background. A credit score is a representation on how you treat your loan payments professionally. But to address the point, yes, your credit score is influenced by the gold loan or credit in particular. Wisely administering your gold loan payments will increase your credit score.

Gold loan rates