June 25, 2024

Steps for an Easy and Efficient NBFC Gold Loan Application Process

Gold is a timeless precious metal that has been used by people for centuries. It always has demand because it is used as an investment, and it is an asset that can be leveraged in a financial pinch. In fact, modern lenders now offer specialised gold loan instruments, and these are packed with features to make the process seamless. These credit solutions allow you to efficiently leverage your gold and get the funds you need with ease. 

So, if you are looking for a gold loan in Bangalore, or any other major city, scout for offers from leading lenders. You will find that NBFCs have attractive offers, and these lenders usually have top-tier provisions. 

To know how you can apply and the reasons to avail a gold loan from an NBFC, read on.

Process of Availing a Gold Loan from NBFC

Availing a gold loan from an NBFC includes some simple steps. Here is the process you can follow:

Step 1: Submit Your Gold Loan Application

The initial step to getting a gold loan from an NBFC is to complete your gold loan application after you have zeroed in on a specific lender. You have the option to choose between two gold loan application methods:

  • Applying in person by visiting the NBFC branch
  • Opting for an online application 

Selecting an online mode lets you submit your gold loan application from the comfort of your home. However, if you prefer to visit the branch in person to avail a gold loan, you may also opt for the same.

You can choose any option that best matches your requirements. Opt for the nearest NBFC branch and submit your application form. This mode is similar to the offline process followed when you avail an Indian Bank gold loan.

 

Step 2: Wait for the Lender to Evaluate Your Application

If you have submitted your gold loan application online, the next step is to wait for the NBFC representative to contact you to initiate further processing of your loan. 

At this stage, the representative assesses your application and inspects the gold you wish to pledge for the gold loan. The representative will check the purity as well as the value of your gold. Further, the NBFC gives you loan approval if you meet the required eligibility criteria.

Step 3: Complete the Documentation and KYC Requirements

After the evaluation of your gold valuables and post approval, you need to submit essential documents to complete your KYC requirements. This step helps in authenticating your information and verifying your genuineness. 

Most NBFCs insist you provide minimal documentation, such as ID and address proof. Similarly, you need to furnish KYC documentation when you opt for an Indian Bank gold loan.

Step 4: Disbursement of Funds

Once you fulfil the required documentation process post gold loan approval, you get the funds credited to your account. Your gold valuables are pledged as collateral with the NBFC, and you can take them only after repaying your gold loan completely. 

Thus, whether you opt for a gold loan in Bangalore or any other city, this process is similar.

Eligibility Criteria for Availing a Gold Loan from NBFC

Checking the gold loan eligibility criteria is essential to determine if you meet the necessary requirements for securing a gold loan from an NBFC. Check out the eligibility criteria for getting a gold loan.

  • The quality of gold, you submit as collateral, must lie in the range of 18 to 24 karats 
  • The minimum age requirement is 18 years
  • The maximum age limit is 60 years, in some cases can go up to 70 years
  • You can apply for a gold loan if you are a professional, self-employed individual or a homemaker
  • You can apply for a gold loan even with a lower credit score
  • You must be an Indian national

Documents Required for Availing a Gold Loan from NBFC

Keeping the required documents handy is vital to ensure that you provide the necessary paperwork for hassle-free and smooth gold loan processing. Check out the documents required when availing a gold loan.

  • Your Aadhaar card
  • Identity Proof: Your PAN card, Driving licence, Passport, or your Voter identity card
  • Address Proof: Your Passport, Electricity bill, Driving licence, or other Utility bills

Reasons to Avail a Gold Loan from an NBFC Lender

Here are a few reasons for availing a gold loan from an NBFC lender.

 

  1. Quick Loan Processing

You can get your funds quickly when you apply for a gold loan with an NBFC. The loan verification process and disbursement of funds happen instantly. This is because gold loans are secured forms of credit and do not require much paperwork. Thus, your loan gets sanctioned quickly.

  1. Lower Interest Rate

Yet another reason for availing a gold loan from an NBFC is that you get lower interest rates on your loan, as compared to bank loans. This is a major difference and it helps you save money. When you pay lower interest on your loan, it reduces your overall borrowing costs as well.

  1. No Processing Charges

Generally, you are required to pay a gold loan processing fee when you avail a gold loan. Most NBFCs do not charge you a processing fee or charge a minimal processing fee. This, in turn, helps reduce the overall cost of your gold loan.

  1. Income Proof Not Required

Another great advantage of getting a gold loan from an NBFC is that you are not required to present your income proof. This makes your gold loan journey easier. Since your gold loan is considered a secured loan, lenders feel less risky against the non-repayment of the loan. In case of defaulting on a gold loan, lenders can use the gold you had pledged as collateral.

  1. No Prepayment Penalties

Prepayment of your gold loan refers to clearing your outstanding amount before the due date. Many lenders offer this facility, which aids in the easy repayment of your gold loan. You can prepay your loan whenever your finances allow. While most lenders do not charge you for this facility, some gold loan lenders may charge a minimal foreclosure charge.

  1. Credit Score Not Mandatory

Another advantageous feature of getting a gold loan from an NBFC is that the lender does not check your credit score. Having a lower credit score does not affect the gold loan processing since this is a secured loan. This makes a gold loan from NBFC an attractive option to choose from.

After understanding the various processes involved, you need to research and compare the interest rates offered by various gold loan lenders. This is essential for the security of your gold as well as for saving on the overall loan costs. 

Now that you know the process of getting a gold loan from a non-banking financial company or NBFC, follow these steps to take a gold loan in Bangalore or any other city in India easily.

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