Everyone for sure faces a situation where funds are needed in an emergency and there is a shortfall of cash. This is not a situation anyone would want to be in but urgent needs call for urgent measures. A gold loan is a viable option for immediate money. There have been cases when many successful businessmen especially in the construction business have had to mortgage the family gold in order to tide over an emergency. In rural households, Gold jewelry is available sometimes in plenty but there is a paucity of cash. The Gold loan is a traditional and popular route for getting instant funds particularly for medical and other emergencies.
Gold loan is gaining popularity due to the metal gold having its diverse nature and traditional belief among Indians.
A gold loan is a secured loan against gold ornaments providing you a loan amount as per the market value of gold, proving EMI option to repay the loan with Low gold loan interest rate and easy fulfillment of your financial needs. The best thing about gold loans is that they are easily available in the market. That is all the banks and financial institutions give such loans to people. The provision of the loan is solely at the discretion of the banks. By taking gold loans, one can maintain the liquidity in his finance, without selling off any asset or the gold itself. Gold works as a security for getting a required amount of finance from any bank. The most attractive part of these loans is that the loan is given for an amount which is more than 80% of the value. These loans are also termed as ATL which means anytime liquidity.
Essentials of a gold loan that are required to seek a gold loan vary from lender to lender. Eligibility for gold loan is anyone above 18 years who own gold on his/her name can avail the gold loan. However, the common list of documents includes:-
Identity proof - (anyone of the following)
Aadhar card
PAN card
Valid driving license
Valid passport
Voter's ID card
Job Card issued by NREGA
Address proof - (any one of the following)
Aadhar card
Driving license
Valid passport
Voter's ID card
Job Card issued by NREGA
Unlike other loans, you don't need a steady source of income or income proof to avail of a gold loan.
You need a letter of witness to in case of illiterate borrowers.
Thus there is not a big list of essentials needed it is just a few basic documents and that's it you are good to go.
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