Get to Know If You Are Eligible For Gold Loan And The Requirements

Gold loans are the quickest fix you can have at the time of financial needs. Would you believe if we say the gold asset sitting idle at your locker can be your saviour at the time of a financial crisis? 

The great thing about it is that it offers a maximum of up to 80% of the market value of your gold asset as the loan sum. There are multiple benefits of opting for gold loans. Hence you should check your gold loan eligibility and then avail of the loan in the best way.

Let us first look into the eligibility and the process of gold loan approvals

If you are an Indian resident, you are eligible to consider gold loans for your economic needs. When you decide to take your gold ornaments, biscuits or coins to the lender to get your loan issued, they will first inspect these items. 

They will also consider the value of the present market to finalize the sum of the loan they can offer you. Once you agree with them regarding the loan sum being offered and the additional fee for the process, you can begin to prepare legal gold loan documents. 

The gold loan documents involve simple KYC such as identity proof, address proof etc. contact your lender to know what documents are suitable for their gold loan offerings. In some cases, you also need to provide certificates of your gold assets. 

Once you are done with all the formalities and submit your gold loan documents, you will quickly receive the loan sum that’s been transferred to your bank account. And, your gold asset will be under the supervision of your lender, which you can gain back only after repaying the loan sum with interest. 

For this, you can also use available gold loan eligibility calculators to assess if you are ready for several gold loan schemes or not. 

Some of the things you need to consider during gold loan application:

Once you decide on the gold loan, you must carry out proper research on the different rates many NBFCs or banks are providing on one gram of gold. To find out this, you need to look for the present valuation of 22-carat gold on the day of your application. It is one of the important information that you must not skip as it plays a vital role in determining gold loan eligibility. 

One more factor that influences the per gram value of gold is the Loan To Value Ratio. Finding out this ratio is a complicated procedure. Hence, to make it simple, you can use an online gold loan eligibility calculator accessible on the web. These calculators offer you quick results. LTV is a value that allows you to find out the possible loan sum you can receive based on the present value of your gold assets. 

However, as per the standard set by the RBI, the maximum value an individual can get from the loan by fulfilling the requirements of gold loan documents is up to 75%. This implies that you can easily get a good 75% of the loan sum of the current value of your gold asset. Hence, applying for a gold loan when its price is high will be a great strategy to avail desired loan sum. 

Hence, to determine how much money your lender owes you in exchange for your gold asset, understanding the LTV ratio and per gram rule is necessary. 

Knowing your eligibility is important to have while applying for any loan, particularly gold loans. This way, you can immediately provide your gold loan documents to the respective lender and get the desired sum to your bank account. 

Borrowers can avail of the Bajaj Finserv Gold Loan and borrow up to Rs. 2 crore depending on the value of the gold pledged. To apply for a gold loan, click and submit the online gold application form.