Gold Loans: Know about the required documents

by Mohit Saxena Apply and Get Instant Personal Loan Approval

A Gold loan is a form of secured loan that one can avail against mortgaging the gold ornaments. It is available at a low-interest rate based on the gold value and loan amount. The best part about these gold loans is that it is available with banks and other financial institutions without having any obligations of giving proof of income.

Unlike other loans, here CIBIL score is not considered as a major criterion to approve a gold loan. One can avail of its benefits with minimal documentation as gold is considered as a valuable asset in giving loan approval. If the gold loan borrower makes a default, in that case, the lender has the authority to auction his or her gold that is kept as collateral to clear all dues.

There are many gold loan providers in India who are offering discounted rates in addition to other benefits. One can avail of the maximum Gold Loan of Rs 1 crore against gold by submitting the gold loan documents.

Major Gold loan documents required for getting approval are:

Identity Proof (Any one of the below):

PAN card
Aadhaar card

Current Address Proof (Any one of the below):

Aadhaar Card
Postpaid Bill/Landline Bill/ Water Bill/ Electricity Bill
Address Updated in Bank statement/Bank Passbook
Driving License
Voter ID
Passport
Rent Agreement (With Latest Owner's Electricity Bill)
Gas Bond Paper with the latest receipt
Credit Card Statement

The minimum documents required for gold loan balance transfer:

1. Pledge card of the loan: It is a document that is obtained from the customer when he or she chooses the option of the balance transfer. This document consists of a loan application number, the quantity of loan, lock-in period, and the loan amount)

2. One canceled cheque (Any account)

Please note that apart from having the essential documents and the gold asset you are also mandated to fulfill the basic eligibility criteria of the lender to get the loan sanctioned related to age, profession, the value of gold, etc.

Gold loans are one of the simplest ways to meet your immediate financial requirements. Due to simplified paperwork formalities, they are processed in less time. If you are willing to apply for a gold loan, you would need a set of certain basic documents as mentioned above. It is one of the best options when you need instant cash that too at a low-interest rate.