How to get a gold loan with your Aadhar card - Explained

May 08, 2020

The process of availing a loan is usually a lengthy experience. This is for two reasons – there are varying sets of documents required for different types of loans, and these can be difficult to secure sometimes as well. A business loan, for example, requires a few documents that must be audited by a chartered accountant first. Similarly, securing papers based on the kind of funding required, a business, personal, educational, car, home, or any other type of loan can become a hassle.

For this reason, a loan on Aadhar card has become a popular choice. An Aadhar card is a document which is approved by the government of India. This document helps verify an individual’s identity across the country and has proven to be extremely useful as a single identification document, thus removing the need for multiple papers. Aadhar cards have made banking and financial activities easier this way as well.

Get a gold loan with Aadhar card

One of the most popular loans that can be availed with an Aadhar card alone is a gold loan. The documents required for gold loans are minimal, to begin with, and can be further narrowed down to a single document.

The reason gold loans require minimal documentation is that the eligibility criteria for one is far more relaxed than it is for other loans. While other loan types require credit scores and credit history, gold loans do not. A borrower will find that this comes down to the difference between secured and unsecured loans. Gold loans are secured, and the loan amount is sanctioned against gold ornaments as collateral. The asset that is pledged is considered as a safety net for the lender in case a borrower defaults on payments.

To complete a gold loan application, the following KYC documents are required –

  • ID proof
  • Address proof
  • Supporting documents (any 1 of the following): Utility bill / Lease agreement of local address (Phone / Gas / Electricity / Water / Broadband / Telephone bill)

Gold loans as unique solutions

What sets gold loans apart from most loans on Aadhar cards is that apart from a single supporting document, no other documents need to be furnished alongside the Aadhar card. Most other loan types, however, accept the Aadhar card only as ID and address proof. The remaining financial documents, such as income proof, bank statements, ITR slips, PAN card, and other documents are still all required.

Additionally, with an Aadhar card acting as both the ID and address proof in a gold loan with Aadhar card, those who do not have other supporting documents such as a passport or driver’s license also stand to benefit greatly. Many different income groups and sections of society do not have these documents with them. This makes it difficult to avail a loan or find a lender who is willing to sanction funds for their needs. This is often the case with stay at home mothers, college students, and individuals employed in the primary sector.

Thus, a gold loan on Aadhar is one of the simplest, hassle-free ways to get funds quickly for any financial requirements.

Apply for a gold loan with Aadhar

Now that it is clear that a gold loan with Aadhar card is the easiest way to get funding, making the choice to apply for one is clearer as well. Gold loan applications are easy to fill out due to minimal document work, and many lenders offer gold loans online, making the gold loan procedure even simpler.

There are several other benefits to a gold loan with Aadhar card that a borrower can stand to benefit from. Gold loans offer some of the lowest interest rates in the market, especially compared to other loans, and guarantee high loan amounts with high per gram rates. A gold loan calculator can offer an approximate loan value which can help borrowers analyse the amount of gold they require to meet their financial requirements.

With Rupeek, a gold loan with Aadhar is made even simpler. Borrowers looking for funds can schedule an appointment at their convenience, and a loan manager will arrive at the given address to complete document verification, loan valuation, and loan disbursement. With the loan available on Aadhar and the convenient online and doorstep services, loans are made quick and easy with Rupeek. Get in touch with a branch nearby to know more.