Financial needs can come unannounced. One never knows when they will need a large amount of funds for an emergency. A gold loan is an excellent way of getting funds by keeping gold as collateral. Financial lending institutions provide a loan against various forms of gold, such as ornaments and gold coins. Many people have questions about the loan against jewelry process and loan against jewelry eligibility criteria. Also, people want to know the time taken for loan against jewelry disbursal. To answer these questions, let’s understand what gold loans are and how to get these loans in detail.
First up, let us understand what a loan against ornaments is? Let us say someone has gold worth INR 10 lakh, and they are in immediate need of funds. They can opt for expensive forms of credit such as personal loans or opt for a loan against gold. In the latter option, they will keep their gold as collateral and get a certain percentage of the value of the gold as a loan. Once they return the loan, they can get their original gold ornaments back. A loan against gold can be taken for varying tenures, ranging from 1 year to 3 years.
Next, we look at the process of taking a loan against jewelry.
The loan disbursal process is one of the simplest compared with the process for other forms of loans. Here are the steps involved when taking a loan against ornaments:
In an EMI option, the monthly payments include both principal and interest payments. At the end of the loan term and after the final payment, borrowers can straightaway collect their gold. In the non-EMI option of the gold loan disbursal process, borrowers pay interest in their monthly repayments. At the end of the loan term, they pay the principal as a lump sum amount.
One of the loan processes highlighted against gold coins is the eligibility criteria, which does not require any income proof. Next, we look at the eligibility criteria.
The eligibility criteria for a loan against pledged jewels issimple: Anyone between 18 and 60 years of age (at the time of loan maturity) can get an instant gold loan. They do not have to show any income proof. Also, unlike other loans, the credit score does not determine the borrower’s eligibility for a loan against ornaments. However, it is ideal for maintaining a good credit score.
Also, loan against gold jewelry can be availed by a wide range of individuals, including:
- Salaried people
- Self-employed professionals
- Business owners
- Other individuals
As part of the loan process, borrowers must submit the following KYC documents. The documents are the same irrespective of whether the applicant is salaried or self-employed.
- PAN card
- Driving License
- Voter's ID card
- Driving License
- Gas bill with gas book
- Aadhar card (mandatory)
- Latest color photographs (passport size)
In some cases, applicants may require other documents to complete the loan process.
The interest rates on loans against ornaments are much lower than the interest rates on personal loans. At Shriram City Union Finance, borrowers get a customized interest rate depending on the gold submitted and other factors. The interest rate starts from 11.5%.
Shriram City is a leader in providing instant loans against pledged jewels with some of the fastest disbursal times in the industry. The loan amount is deposited in the bank accounts of borrowers on the same day of approval of the loan.
The company has been providing loans to individuals and businesses since 1986. As one of the country's most prominent financiers has provided loans to more than 40 lakh borrowers.
Apply for an instant gold loan now.