Gold loans have numerous benefits as they have earned a lot of importance in the market and, after that, became highly prominent. Apart from this, several other issues grab the client’s attention and persuade them to accept a gold loan as they see the advantages it delivers to them.
So, let us look at the procedure of applying for a Jewelry Gold Loan, the steps are as below:-
Jewelry Gold loan application:- The primary step in this procedure is to choose a loan amount that would satisfy your requirement for the funds, various banks and lenders offer gold loans, and before selecting one of them, you should be sure that you have approximated various prospects of several different banks and lenders and decided the most favorable source of borrowing for the procedure. There are two ways to fill out the application process, that are, online and offline. There is not much difference between the two processes as in the online procedure, you are required to go to the bank or lender’s online website and fill the application form for the gold loan there. however, in the offline method, you are required to visit the closest bank branch and fill out the application form there.
Jewelry Gold submission:- This is the most crucial step in the procedure of availing of a gold loan; your bank or lender requires you to submit the gold ornaments as security or collateral. So, in this process, you need to visit the bank branch to deposit your gold jewelry and ornaments for further steps.
Jewelry Gold evaluation:- The following step is the gold examination. Under this procedure, the lender or bank will evaluate the total value of the gold that you have deposited. This is inferred based on the existing market value of the gold, and the existing value of the gold will notify how much loan amount you can borrow against the gold deposited. So, it will majorly rely on the value of your gold deposited and the market value of the gold at that time of examination. As per the RBI, a person can get an utmost 90% of the gold value as the loan amount.
Documentation process:- In the fourth step, you will be asked to submit some documents to the bank or lender. This involves easy documentation with some fundamental document requirements, such as identity proof, income proof, residency proof, and other documents such as passport size photographs. A credit score is not required in the case of a gold loan. Instead, you can select a gold loan interest rate that suits your pocket.
Eligibility, Authentication, and disbursal:- Under the last step of a gold loan application, the bank or lender checks your eligibility. All the banks and lenders have varied conditions based on which they test your eligibility. These eligibility criteria mainly involve the borrower’s age, purity of the gold pledged, etc. If everything is correct, the funds are disbursed into your bank account. This can be done in a few minutes. You can also avail of a gold loan in SBI as they make your process easy and assist you regarding several conditions required to apply for the loan.
