How To Get A Gold Loan At Your Doorstep

The pandemic has created the necessity to provide doorstep services for most businesses. The lending market is no different. With everything else being made available at the consumer’s doorstep, financial institutions have also started offering doorstep banking services. Likewise, banks and NBFCs enabled taking a gold loan from the comfort of one’s home.

In this article, you will know how to get a gold loan at your doorstep.

How To Apply For A Gold Loan At Your Home?

Applying for a gold loan is a simple process.

Step 1: Application

You first need to decide the total amount of loan you require and consecutively select a lender.
You can then go to their website or app and fill in the necessary details and upload the documents.

Step 2: Lender Executive’s Visit

After the application process is complete, an executive from the lender company will visit your place to check the quality of the gold.
The executive will complete the KYC process after the health check of the gold.
Gold is taken into custody and put in a safe vault while your approved amount is transferred to your bank account.

Step 3: Repay And Close The Loan (Elaborate On Each Point)

The borrower can start repaying the amount online
You can repay the entire amount at the end of the loan tenure and close the account after taking back the pledged gold.

How To Calculate The Gold Loan Amount?

The amount of gold loan approved depends on the amount and purity of the gold pledged. The minimum acceptable purity is 18 carats, below which most gold leasing companies will not accept jewellery.

One essential thing borrowers need to keep in mind is the loan-to-value (LTV). This ratio is the maximum amount the lender will allow as a percentage of the value of the gold pledged by the borrower after purity has been assessed and verified. For example, if Rs 5 lakh worth of gold jewellery is committed and the lender offers an LTV of 60%, the loan amount will be Rs 3 lakh. However, if another lender offers 75% LTV, the figure rises to Rs 3,75,000. The following formula usually determines the amount of gold loan paid: net weight x price of gold per gram x purity.

Gold loans have been a saviour for borrowers in emergencies. The liberty to avail of a gold loan at your home makes it one of the best alternatives for borrowers to meet their short-term needs.

Frequently Asked Questions

Q.1: Do we need receipts for gold purchases to get the gold loan?
Ans: No. It is not mandatory to have receipts for gold purchases to avail of a gold loan.

Q.2: What documents are needed to get a gold loan at home?
Ans: Two major types of documents required to get a gold loan is identity proof and address proof. It can include an Aadhar card, pan card, passport, electricity bill, etc.