A Handy Guide to the Documents Required for Gold Loans

Mar 04, 2020

At different points in our lives, we work towards different goals. Whether it is pursuing education in a prestigious university, buying a vehicle or a house, or starting up a business, they all have one thing in common - these can require a large amount of money. Often, taking a loan can be the way to achieving these objectives.

There are a range of different types of loans, each available for specific requirements, from business loans to home loans, auto loans, and even personal loans that can be accessed for a variety of financial purposes. However, most of these are heavy on document work and may take a long time to be disbursed, making the application process difficult. A personal loan can often take up to two weeks to be sanctioned while the timeframe for a home loan can run to over four weeks if the borrower does not provide the appropriate documents.

Gold loans, on the other hand, can prove to be an apt alternative in such a situation. It can be used when you are in need of cash. Instead of liquidating a fixed deposit or other forms of savings-investment to fulfil your needs, taking a gold loan can be a wise financial decision. The documents required for gold loans are minimal, making them a lot faster than their counterparts.

Loan documentation - A snapshot

Borrowing against gold has many benefits compared to the alternatives, and comparing a gold loan document list with documents required by other loans can provide better insight. Apart from an application form, here is what other popular lines of credit require:

Type of LoanDescriptionDocuments Typically RequiredEligibility (General, as it Varies from Bank to Bank)Personal LoanA loan taken for any personal need, ranging from household purchases to consolidating debt 1. Identity proof

Type of Loan Description Documents Typically Required Eligibility (General, as it Varies from Bank to Bank)
Personal Loan A loan taken for any personal need, ranging from household purchases to consolidating debt  1. Identity proof
2. Residential/ address proof
3. Income proof (salary slips/ bank statements)
4. Proof of job continuity
5. Photographs
1. Age limit is between 21 and 60 years
2. Must be self-employed or salaried with work experience
3. Must show income to repay EMIs
4. Have a CIBIL score of at least 650
Education Loan Borrowing to finance a student’s post-secondary education and related fees like books, tuition, living, etc.  1. Identity proof
2. Proof of residence
3. Age proof
4. Admission letter from the institute
5. Collateral papers/ income proof of guarantor
6. Fee structure from university
7. Visa and travel papers, if applicable
1. Minimum 18 years of age
2. Acceptable past academic record
3. Must have secured admission
4. Must have guarantor 
Auto Loan Credit product for the purchase of a motor vehicle like a car or scooter 1. Identity proof
2. Proof of residence
3. Age proof
4. Proof of income
5. Bank statements
6. Proforma invoice stating vehicle price quote
1. Minimum 18 years and maximum of 75 years at the time of loan maturity
2. Employed with work experience
3. EMI repayment capability
Home Loan Borrowing instrument for purchase of residential property  1. Identity proof
2. Address proof
3. Income proof
4. Bank statements
5. Property documents such as sale deed or allotment letter
1. Age between 18 and 70 years
2. Employed with minimum work experience
3. EMI repayment capability
4. CIBIL score of at least 650
Business Loan Line of credit specifically meant to set up or expand a business 1. Identity proof
2. Address proof
3. Age proof
4. Financial documents such as profit and loss statements, balance sheets and ITR statements
1. Minimum age of 18 and maximum of 65
2. Should be salaried or running the business profitably for a minimum duration
Gold loan A loan taken against gold ornaments for any purpose or requirement left to the discretion of the borrower 1. Identity proof
2. Address proof
1. Minimum age of 18 years
2. Have gold to pledge

Documents required for gold loans

In comparison to the loans listed above, the documents for gold loans are minimal, and the eligibility criteria is also simple. Here are the documents required for gold loans:

KYC documents

To be eligible for a gold loan, apart from being of legal age, an applicant simply needs to possess gold to pledge and prove the repayment capability. Here is a handy gold loan document list to be prepared with:

1. Any one of the following as identity proof:

  • Aadhar card
  • PAN card
  • Voter’s ID
  • Driving license
  • Passport
  • Job card from NREGA

2. Any one of the following as address proof:

  • Lease agreement of local address
  • Utility bills like a phone bill, gas bill or water bill
  • Any of the documents listed above

Once the documents are processed and verified by the lender, the loan can be disbursed in under an hour compared to the days and weeks other types of loans can take up.At Rupeek, you will have the added benefits of at-home and doorstep services, quick document verification, and instant money transfer. You can also decide how much gold you would like to pledge by using our gold loan calculator. Choose Rupeek for your online gold loan solutions for an effortless online gold loan experience.