As we all know that a gold loan is a sum of money borrowed from a bank by pledging gold jewelry. We need to understand the terms and conditions involved, the loan tenure, the types of gold loans, advantages and disadvantages, and so on.
The amount that you collect in exchange for the gold pledged depends on the price of the gold in the market on that day and also on the market value of your jewelry, coins, or ornaments (whichever one you choose to pledge).
To avail of a gold loan, you need not have to worry yourself unnecessarily thinking if you might get it or not because the eligibility criteria for a gold loan are quite basic. The applicant or the borrower has to be above 18 years and below 75 years. Whatever the money that they have borrowed, they should have a stable job that would help them pay the interest rate on a monthly basis, if they do not have a stable job and a steady income, they are automatically not qualified enough to get a gold loan on their name.
You also need to be very particular and up-to-date about the market prices as well as the rates of interest offered by different banks. No two banks’ interest rates might be the same, they would be slightly different even if not for a significant difference. Choose the scheme and the rate of interest which would work better for you and seems apt for you- to avoid missing payments or losing the ownership of your gold to the bank. To avail of a gold loan you do not have to be of a specific occupation, anyone from a farmer to a government official is permitted to apply and avail of this loan. The only thing is the rate of interests and the schemes offered to them might differ, more than little.
The documents needed to avail of a gold loan are also not that difficult to get because those are the documents that every Indian Citizen would and should have. Therefore, you need not worry about thinking that it’s a gold loan so they might ask for documents that I don’t have. That is not the case. Any type of loan for that matter asks for proof of your identity, residence, income, photo identity, and so on.
All of this is collected from the applicants’ to do a cross-verification about their identity and their credit history. Well, obviously the bank would have to do this because they are trusting you, the applicant, and giving you a large amount of money. They would want to verify before proceeding, and it is nothing personal against you. It is their job to do that.
So, if you are ever planning on availing of a gold loan, remember that it also has several advantages. From flexible repayment options to lower interest rates. To be able to extend their loan tenure when they need to. However, there are only certain banks that offer the feature of the extension of the gold loan and that is the Axis Bank under the Axis Bank Gold Loan.
Conclusion:
There is no restriction as to who can avail of a gold loan. The only and the most important factors to consider are that the applicant needs to be above 18 and have a steady and stable source of income. This is all that is needed to avail of a gold loan.