Method of obtaining Gold Loan
The process of applying for a gold loan is quite simple. The applicant must be of 18-70 years of age. The Gold loan can be acquired by anyone who suffices.
Gold Loan Eligibility and possesses more than 18 carats of gold. No occupation barrier is there for acquiring gold loans. No credit score for CIBIL score is required for this loan. However, one can improve his/her Credit score by this loan. This loan can be acquired for agricultural processes or travel purposes, wedding purposes or higher education, etc. There is no restriction on the utilization of the loan amount.
Application process
This procedure can be done in two modes—online and offline mode.
ONLINE MODE- The applicant can complete the procedure from HDFC bank's official website or app.
OFFLINE MODE- The applicant has to visit the bank for completing the application procedure.
The rest of the procedure is the same where the applicant has to visit the bank for document verification and gold's purity test.
Documentation
There is a lot of paperwork and lengthy documents to be submitted for availing loans. This is not the same for Gold loans. Here only KYC documents are necessary. The verification is done for checking the applicant's background. Identity proof and Address proof, along with 2 passport-sized photographs, are mandatory. For identity proof, one can submit anyone from this- Aadhar card, Driving license, Voter Id, PAN card. For Address proof, one can submit anyone from this- Passport, Aadhar card, Ration card, utility bills, or rental agreement for renters. No other documents than this are not required. When applying for Agricultural purposes, one has to submit proof of agricultural land.
Purity test of Gold
The gold which has to be kept as a mortgage has to be evaluated. The evaluation is done for checking the impurities present in the gold and its weight and composition. This is called Gold's purity test. Bank representatives conduct the purity test.
Loan Approval
Once you have completed the application process, document verification, gold purity test, and met the eligibility criteria, your loan gets approved. After approval, a sanction letter is issued to the applicant. A sanction letter contains bank details, loan amount, interest rates, prepayment options, foreclosure charges, loan tenure, repayment options, Gold Loan Rate Per Gram, etc. After depositing the Gold in the bank, it is safely kept in bank lockers.
Safety of gold
When you deposit the gold in a bank, it is kept in lockers. The lockers are present inside the Bank's vault. The gold is kept in bags and marked by the application as no present in your sanction letter. The lockers are guarded and kept under surveillance. The lockers hold durability from external conditions. The lockers have specific keys for all the lockers. The keys own the bank representative. Nobody is allowed to enter the Locker room except bank representatives.
Repayment
The following three alternatives are open for refinancing your HDFC Gold Loan Loan.
- Standing Instruction (SI) If you have a current account with HDFC Bank, an amount indicated by you will be deducted towards the end of the month.
- Electronic Clearing Service (ECS) This option is for those who don't have an account in HDFC bank; here, the amount indicated by you will be deducted from the account of other banks shown by you towards the end of the month.
- Post-Dated Checks (PDC) The PDC can be submitted to your nearest branch of HDFC Bank towards month-end.
Benefits
- The interest rates are only 9.90% per annum which is very less in comparison with other loans.
- The processing fee charged is only 1.50% of the Principal Loan Amount.
- No foreclosure charges after 3 months.
- The loan can be approved up to Rs 1 crore.
- Loan tenure is between 3 to 24 months.
- The gold loan can be obtained in just one visit.