How You Can Get Gold Loan With Only Your Aadhar Card

Learn how to get a gold loan with minimal documentation using only your Aadhar card. Discover the benefits and convenience of Aadhar card loans.

2 Jul,2023 09:54 IST 1867 Views
How You Can Get Gold Loan With Only Your Aadhar Card

One of the biggest hassles of procuring any loan is documentation. It’s  given that the financial institution would want everything by the book, but documentation proves to be both cumbersome and time-consuming for the applicant. So, does such a loan exist that requires the bare minimum documentation and is comparatively hassle-free? The answer is the gold loan, which you may get by submitting your Aadhar Card.

Why A Gold Loan May Be A Good Idea

Different kinds of loans require specific documentation, and there’s no one-size-fits-all solution. For instance, for a business loan, you’d have to give your income tax return proof, sales tax, financial proof, proof of business continuation, etc. Furthermore, not only does the variety of specific documentation add to the complexity of bagging the loan, but there are chances that someone may not have all the necessary documents, leading to rejection. Thus, individuals may prefer to turn to loans that require minimal documentation. And gold loan is one such option. Of course, note that the documentation requirement varies from lender to lender based on their policy, loan scheme, and the borrower’s category. That said, many institutions will give you a gold loan just with your KYC documentation, and the Aadhar Card is the big daddy of this.

Getting A Gold Loan With Aadhar Card

Your Aadhar card serves many purposes as a government-approved identification document in India. It often works as a single identification document, eliminating the need for multiple papers, which makes banking and financial activities more convenient. As it is, gold loans have minimal documentation requirements compared to other loans, as their eligibility criteria are more relaxed. Unlike different loan types that require credit scores and credit history, gold loans do not consider these factors since these are secured loans, where the lender sanctions the amount against gold ornaments used as collateral. Irrespective of the credit history, the lender has the borrower’s gold, which is a tangible guarantee that their money is safe since they can legally sell the gold off if the applicant default on repayment.
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KYC Documents Required To Get A Gold Loan

When applying for a gold loan, the lender will typically request these KYC (Know Your Customer) documents: an ID proof, an address proof, and supporting documents such as utility bills or lease agreements for local address verification. Your Aadhar Card is a single document that fulfills all these requirements since it has your photo and permanent address. Obtaining a gold loan requires no additional financial records such as income proof, bank statements, ITR slips, or PAN cards; thus, your Aadhar card suffices.

How Else Does An Aadhar Card Help In Getting A Gold Loan?

Submitting the Aadhar card for a gold loan is especially beneficial for individuals like stay-at-home wives, college students, and primary sector workers who do not possess other supporting documents such as a passport or driving license. These individuals and those who belong to lower-income groups or similar strata of society often face challenges when trying to obtain a loan. In such cases, a gold loan on Aadhar becomes an easily accessible and hassle-free solution to fulfill their financial requirements. Gold loans generally offer lower interest rates than other loans and provide higher loan amounts based on the value of the gold.

Straightforward Process

Given the minimal documentation requirements, the gold loan process with an Aadhar card is pretty straightforward. Many lenders offer the convenience of applying online, further simplifying the procedure. A gold loan calculator will help you estimate the loan value, enabling you to assess the amount of gold you need to pledge.

Generally, you can visit a financial institution’s website and submit an application. Once done, the institution will appoint a loan manager to complete the formalities, which may include a home visit by the loan manager to verify. The gold loan calculator lets you estimate the loan value you can obtain by pledging your gold as collateral. It considers factors such as the weight and purity of the gold to provide an approximate loan amount based on the prevailing per-gram rates.

Borrowers can schedule an appointment online, and a representative will visit their address for document verification, loan valuation, and disbursement process. Alternatively, they can visit the nearby branch for the procedure.

In conclusion, obtaining a loan needn’t be lengthy, confusing and tiresome due to the documentation. Gold loans availed using the Aadhar card will ensure a quick, effortless, and hassle-free process with minimal document work, low-interest rates, high loan amounts, and the convenience of online and doorstep services.

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Disclaimer: 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.

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