First, you must be financially sound, although you can get loan from bankers and other sources but you must need to invest minimum 50% for the required finance to start the Gold loan business. Then you should need to get secure licenses and requirements for opening a company from your state government office.
Simply so, how can I get gold loan documents?
Documents Required to Get Gold Loan in 2021
- Identity Proof. PAN Card. Aadhaar Card. Voter’s ID Card. Passport Copy.
- Address Proof. Rent agreement. Passport. Driving License. Utility Bills. Aadhar Card. Voter’s ID Card.
- Passport size photographs.
Just so, how can I start a gold loan business?
- Certificate of Incorporation.
- Director Pan and ID proof.
- Board resolution.
How do gold finance companies work?
How does gold loan works? … The lender evaluates the gold articles and verifies the submitted documents. As per the evaluations, the lender sanctions the loan amount. As per the loan agreement, you pay off the principal amount along with the interest amount and get the pledged gold articles back.
How Does a Gold Loan Work? For a Gold Loan, the bank takes your gold as collateral for the period of the loan. Banks charge an interest rate, and once you repay the entire loan, the bank returns your jewellery.
As stated earlier, the gold loan only finances you to the extent of 60% of the value of your gold. If you look at the last 5 years, which has been a bad period for gold, the negative returns have been around 28%. That means you are still profitable on your hypothecated asset.
A PAN card is not a mandatory document to apply for a gold loan. … Identity proof document (any one)- PAN card, Passport, Driving License, Voter’s ID.
This loan is basically financed against the asset value of the gold. The bank/NBFC will test for the genuineness of the metal. … However, if the fair market value (FMV) of the flat is higher than the sale price of Rs 30 lakh, you may still have to pay the stamp duty on the higher FMV.
The following are the documents which are necessary for processing your loan.
- Application Form for Gold Loans.
- Two copies of photographs of the borrower(s)
- Proof of Identity such as PAN card, Aadhar card.
- Proof of Address such as voter ID, ration card.
The loan amount is decided on the basis of the LTV (Loan to Value) ratio. This ratio varies from lender to lender and goes up to a maximum of 80% of the value of the pledged gold. This means that if the market value of your gold is Rs. 5 lakhs, you can get a maximum of Rs.
Yes, anybody aged between 21 years and 70 years can avail of a gold loan. Unlike other loan types, secured or unsecured, applicants do not need to fulfil stringent eligibility requirements to avail of this loan.
In the case of a gold loan, the financial institutions can sanction a credit limit of up to 75% of the market value of the gold mortgaged. The loan to value ratio, in this case, is capped by the Reserve Bank of India.
What is the maximum limit on the Gold Loan that can be availed? A Gold Loan can be availed for a minimum of Rs 10,000 and maximum of Rs 1 crore, per customer.
Gold Loan Interest Rates Comparison
|Name of the Bank
|Canara Bank Gold Loan
|Rs.5,000 to Rs.35 lakh
|Muthoot Gold Loan
|12% p.a. to 26% p.a.
|SBI Gold Loan
|7.00% p.a. onwards
|Rs.20,000 to Rs.50 lakh
|Kotak Mahindra Gold Loan
|10.00% p.a. – 17.00% p.a.
|Rs.20,000 to Rs.1.5 crore