Gold is one of the most sought-after metals in India due to its durability, intrinsic value and beauty. Besides gold holding cultural relevance in India, it has been a reliable source of investment since time immemorial.
You can also use gold to fund your emergency financial needs. Whether you need cash to manage your medical treatment, renovate your home or even establish your start-up, gold loans always come in handy.
With most lenders offering up to 75% of the asset’s current value as a loan, you can easily pledge gold as collateral and obtain the required funds. All you need to do is visit the lender and submit your gold valuables along with the necessary KYC documents. Some lenders may even offer doorstep services.
While availing gold loans is a simple and straightforward process, here are some pointers to keep in mind for quick approval.
1. Assess the lender’s credibility
With a plethora of lenders offering competitive gold loan interest rates, choosing the right one plays a crucial role. While this can be quite challenging, it is prudent to check the credibility and reliability of the lender.
This is so because you are pledging your gold valuables with the lender and hence need to be really careful. Make sure not to opt for unauthorised lenders despite them offering pocket-friendly rates and terms, as they may not prove to be trustworthy.
Choose a reliable lender providing instant access to funds to help you manage your financial requirements. Also, select one that has minimal processing time and offers affordable interest rates. You can achieve this by scouting through the market for various loan options before zeroing in on a lender.
2. Meet the required eligibility criteria
This is another factor affecting your gold loan approval. Gold loans have easy-to-meet eligibility criteria, so you can get quick approvals if you meet the required parameters set by the lender.
Remember, most lenders accept your gold valuables as collateral only if they are 18 karats or 24 karats. Pledging your gold valuables as per the lender’s criteria can speed up loan approval and get you quick funds during emergencies.
3. Submit the KYC documentation without delay
When availing a gold loan, you need to submit your ID and address proof along with the gold assets to be pledged as collateral. These KYC documents help the lender verify your identity and ensure you are a genuine borrower.
Keeping the documents handy and submitting them on time can speed up your loan disbursement process.
With lenders providing online options, you can easily apply for a gold loan from the comfort of your home. You can then submit the documents along with your gold ornaments either by visiting the nearest branch of the lender or opting for a doorstep facility. The sooner you provide the required documents, the faster your gold loan approval will be.
Here are a few documents accepted as ID and address proof. You can submit any one of these when availing a gold loan.
· Aadhaar card
· PAN card
· Voter ID
· Driving licence
· Aadhaar card
· Utility bills
· Any Government-approved card
4. Maintain a good credit score
A credit score is a numerical representation of your creditworthiness. This 3-digit number helps lenders determine your repayment ability and lending risk. Most lenders consider 750 and above as the ideal credit score. While you may get a loan above 600, remember that the terms may not be favourable.
Since you are pledging your gold valuables as collateral with the lender, your credit score does not affect your gold loan approval. However, with the RBI mandating a credit score check for all forms of credit, a healthy score can help you negotiate for better loan terms and conditions.
So, despite having a low score, you can get gold loan approval but with a higher interest rate. A higher interest rate translates to increased borrowing costs, affecting your monthly finances. Hence, maintaining a decent score not only helps lenders assess your repayment capability, but also helps you get quick approval on favourable terms.
Now that you are familiar with a few tips and tricks to avail gold loans quickly, you can easily opt for one to help you manage your requirements. If you want to apply for a gold loan to get instant access to financing, try the Bajaj Markets App. On this financial marketplace, you can choose from top lenders offering gold loans, and apply in minutes. Simply download it from the App Store or Google Play, and avail a gold loan instantly.