Simplify The Gold Loan Process With This Checklist

Gold is often seen as a safe investment option. The best part is that gold can be easily converted to cash by either selling it or pledging it. This process of surrendering your gold as collateral is known as a gold loan. A gold loan is a popular concept among Indians as sentiments are attached to it and people do not prefer to sell them quickly.

Various banks and NBFCs across India provide gold loans at a rate of 7-29%. Availing a gold loan for the first time can be a daunting process. The checklist in this article will simplify your gold loan process.

Checklist For A Gold Loan

The complete procedure for a gold loan differs from one lender to another. However, a few of the basic mandatory things to go through a gold loan process include-

1. Assembling Your Gold Ornaments:

Keep all the gold jewellery like earrings, necklaces,  etc. that you want to pledge in advance. Make sure that it needs to be between 18-22 karats.

2. Selecting A Lender:

Various banks and NBFCs provide a gold loan and you can choose the one that suits you the best. Checking the offered interest rates, charges, schemes, and processes of the lender are necessary for a smoother experience. IIFL Finance offers one of the best rates, starting at 0.99% per month.

3. Purity Check:

Once you have all the documents and gold ornaments in place, the lender checks the purity of your items and offers you up to 75% of the market value of your golden items.

4. Documentation:

Once the value of the pledged articles is determined, you can initiate identity and address verification. Check the documents accepted in the institution of your choice. IIFL Finance accepts a varied range of documents, including the following:

• Aadhaar Card
• Valid passport
• Ration Card
• Electricity Bill
• Valid Driving License
• Voter ID Card
• Job Card issued by NREGA
• Electricity Bill

5. Receive Funds:

Once everything is clear (gold value and document verification) you can receive funds. Check the tenure of your loan and repay the amount on time to avoid penalties and release your pledged articles. IIFL Finance offers a maximum tenure of 24 months for a gold loan.

Apply For A Gold Loan Scheme With IIFL Finance

IIFL Finance, a leading gold loan lender. Since its inception three decades ago, it has helped several borrowers have a hassle-free experience. We offer competitive interest rates and flexible repayment terms for short-term gold loans.

We ensure the safety of your collateralized physical gold until the required amount has been repaid. You can visit any of our IIFL branches pan India or apply online, fill out your e-KYC and get eligible in under 30 minutes.