What KYC Documents Are Required For A Gold Loan?
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):
• Passport
• 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.
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Apply NowDisclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
