What KYC Documents Are Required For A Gold Loan?
Seeking to apply for gold loan? Here's a simple guide that explains KYC process & documents required for acquiring a Gold Loan at IIFL Finance. Visit Now!
KYC is one of the most crucial steps to complete any bank or official work. Many loan disbursements, including gold loans, require you to complete a KYC process. This article elaborates on KYC and the documents required for gold loans.
What Is The KYC Process?
Know Your Customer or KYC is a government-prescribed mandatory process conducted by every financial institution, like banks, NBFCs, brokerage houses, etc. The process verifies the identity and address of the customer. The frequency of the process depends on the risk to the customer.
As the name suggests, KYC (Know Your Customer) helps financial institutions to know about their customers. It protects this institution from dealing with fraudsters or illegal individuals or organizations.
KYC limits criminal activities like money laundering, illegal businesses, etc., and helps combat financial terrorism. It also helps track the financial activity of the account holders and, thus, their creditworthiness.
What Are The KYC Documents Required For A Gold Loan?
As previously mentioned, KYC majorly verifies the identity and address of the customer. Thus, the documents required for gold loans must contain either or both of these pieces of information. These documents include:
For Identity Verification (Legal Name):
• PAN Card
• Voter ID
• Driving License
• NREGA Job Card
• Identity Card
• The letter issued by the Unique Identification Authority of India contains the details of your name, address, and Aadhaar number.
• A letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of the bank
For Address Verification:
• Bank Account Statement
• Telephone Bill
• Electricity Bill
• Ration Card
• Letter from any recognized public authority
• A rent agreement indicating the address of the customer is duly registered with the State Government or similar registration authority.
Apply For A Gold Loan With IIFL Finance
IIFL Finance is a leading gold loan lender. Since its inception, it has achieved a hassle-free experience for various gold loan borrowers. We have successfully provided gold mortgage loans to 6 million satisfied customers who received their funds easily. We have a hassle-free and quick KYC procedure with minimal documents required for gold loans.
IIFL offers competitive interest rates and flexible repayment terms for short-term gold loans. We also ensure the safety of your collateralized physical gold until the required amount has been repaid. There are absolutely no additional costs for the redemption of your gold mortgage. If you have any questions, you can contact our 24-hour customer service team via phone or live chat.
Getting a gold loan has never been easier! Walk into any of our branches pan India, fill out an e-KYC and get your loan approved in under 30 minutes.
Frequently Asked Question
Q.1: What is a gold loan?
Ans: A loan against your valuable gold in any physical form is known as a gold loan. In a gold loan, gold acts as collateral for your cash needs.
Q.2: What are the documents required for a gold loan?
Ans: KYC majorly verifies the identity and address of the customer. Thus, the documents required for gold loans must contain either or both of these pieces of information. These documents may include a passport, electricity bill, ration card, PAN card, and driving license, to name a few.