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A Dummy’s Guide To Loans Against Gold
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Of all the loans that are available, one of the most convenient and easy choice is the loan against gold. Families in India tend to invest a lot in gold items like coins, jewelry and bars. These items are normally passed from one family generation to another as a family heirloom. Additionally, these gold items can be reinvested as a security deposit for advance credit. But to avail of this facility, you will need to know its exact functions, which we will provide in this guide.
What Is A Gold Loan?
If you have any gold items in the form of jewelry, bars or even coins, you can approach a bank and invest them for a small amount of money. This is known as loan against gold. You can use the loan amount for any of your financial obligations, be it personal reasons, a marriage, purchase of certain high value items and many more. Depending on the quality of the gold items and the hallmarking of the gold jewelry, you will be given an appropriate loan amount.
What Are The Eligibility Criteria?
The eligibility criteria for this loan application process are simple. All you need to do is submit a few documents which show proof of your identity, your address and your signature. You will also have to be above the age of eighteen years to apply for this loan.
What Is The Documentation?
The documentations that are normally required are the normal documents which you already have with you. They include a copy of your passport, voters ID, PAN card or even your Aadhaar card. For the address proof, you can submit a copy of the same documents mentioned above along with a copy of the electric bill or telephone bill. For signature proof, you can submit a copy of your passport, PAN card, a verified document from the bank or even a personalized cheque. Depending on your portfolio, you may be asked to submit additional documents at the discretion of the banking or financial institution.
What Is The Loan Process?
Normally, you can approach the bank with the necessary documents and gold items, and submit them. Normally, the gold items will first be verified wherein the value of the gold will be analyzed. After this, the documents that will need to be submitted will also be verified. Once all the submissions are verified, the bank will approve the loan if deemed satisfactory. The loan approval can take anywhere between a few hours to a day, depending on the loan amount required and the gold items submitted.
The loan against gold can be used for many purposes. However, in order to ensure that you get the loan amount approved as per your requirement, you must understand the process thoroughly. You must get all the right documents and submit them accordingly.
Author Bio :- Neha Sharma is a finance student that loves to write during her spare time. She is well aware about the requirements and application process for the gold loan. She has provided a detailed guide for first timers who wish to apply for a loan against a href="http://www.hdfcbank.com/personal/products/loans/gold-loan">gold loan any of their financial obligations.
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