Gold loan is a loan on gold or a loan against gold as collateral or security. Buddy Loan App disburses gold loan with minimal documentation and lowers interest rates depending upon your credit history.
The Importance of Aadhaar Card for Availing Gold Loan!
Therefore, a gold loan is a secured loan where gold is used as collateral that can be sold, and the lender can be repaid through the sale of gold in case the borrower fails to repay the loan.
Gold loans can be availed through banks, although certain formalities need to be completed, and the process is a bit time-consuming. Gold loans can also be availed as a Buddy Loan. A Buddy Loan can be availed via the online gold loan facility through a variety of gold loan providers that have the best gold loan offers.
Through a variety of banks and financial institutions that offer the best gold loan offers online through the facility of instant gold loans, one can even avail of a gold loan on Sunday, from the comfort of one’s home, at the click of a button.
Availing of a gold loan during lock-down is no problem at all. Certain formalities need to be completed before availing of a gold loan. One of which is the KYC (Know Your Customer) requirement.
Whether applying for a gold loan online or whether one decides to go to a bank or a financing institution and undergo the physical process of the offline application, it is mandatory by law as enacted by the government to collect specific KYC documentation.
KYC Documentation
- Banks and financing institutions are obligated by law to collect such information as well as to keep the said documentation updated from time to time.
- Various documents can be considered as eligible to be considered as eligible or valid KYC documentation. Examples would include Passport, Voter Identity Card, Driving License, PAN Card, NREGA Card as well an Aadhaar Letter/Card.
- The KYC documents are required as proof of identity as well as proof of address/residence. Anyone document is allowed, and Aadhaar Card is not mandatorily required as a KYC document.
- However, before 2018, many or almost all banks and financial institutions into a document made Aadhaar Card mandatory to open accounts as well as to avail loan facilities with them as per the directives of the Government of India.
- The Aadhaar Card was sought to be made into an identification document that is similar to the Social Security Card in the United States of America.
- Therefore, to avail of loans either offline or through the online mode, Aadhaar Card was a mandatory document without which, the loan was liable to be rejected.
In Detailed
However, under the judgment given by the Honable Supreme Court of India, banks may use the Aadhaar Card as a KYC only in case the customer consents to its usage. The Reserve Bank of India has also issued such clarification in light of the decision given by the Hon’ble Supreme Court of India.
However, even though the Aadhaar Card is not a mandatory document, it can be said to be a comprehensive document. It includes the name, addresses as well as fingerprint information of the individual and therefore, the process of verification via the automated mode is faster and cheaper.
Verification
- Banks have an E-KYC process where KYC verification has been digitalized. In such a scenario, even though Aadhaar Card is not mandatorily required.
- It does speed up the verification process and enables faster processing of the business loan.
- Even financial institutions prefer the Aadhaar Card for faster verification, whether the loan is sought through the online or offline mode.
In case the loan is sought through the online mode, it is even possible to get an instant business loan online in case Aadhaar Card is uploaded as a KYC document as the identity verification can be instantly done, and the KYC process can be instantly completed because the identity of the borrower can be instantly verified through the e-verification process.
Aadhaar Card, although not a mandatory KYC document, is still the most preferred document in terms of its ease of use and verifiability.
The Uses of a Gold Loan Are Far Superior!
Credit History Is Not Essential – Obtaining a loan without a credit history is difficult, but a gold loan during lock-down is possible with the gold you own. Buddy Loan as a loan aggregator, helps you acquire a gold loan quickly. Unlike other loans with minimum salary requirements, a gold loan is open to anyone willing to pledge gold of value, making it an easily accessible option to acquire a loan for people of different walks of life, owning gold biscuits or jewellery of purity ranging from 18 Carat to 24 Carat.
Good Option In Case Of Urgency
Where you need a loan on an urgent basis, a loan against gold via Buddy Loan is one of the best options. Approving a gold loan is quick, and so is its processing. With Buddy Loan, the process becomes more straightforward. The essential eligibility criteria are required to be fulfilled, and the borrower must possess gold having purity between 18 to 24 Carat. That’s it!
It Is A Secured Loan
Gold loan is provided against pledging of gold biscuits or jewellery, and no other security is required. No guarantor or additional security is required.
Gold Is A Liquid Asset
Most often than not, gold as an asset lies idle at our home. Since it is highly liquid, obtaining a loan against gold is a good option when you need money, instead of taking another type of loan.
Helps in Improving Credit History
The borrower need not have a credit history while applying for a loan during lock-down via Buddy Loan, online. The person should own gold of value, which can be pledged for a loan. Repaying the loan regularly helps in building a credit score.
Lower Interest Rates
Applying for a gold loan online via Buddy Loan is a good way of funding your immediate need for finance since the interest rates are lower as compared to other loans. Gold acts as a security, and hence the interest rates begin at 11.99% p.a.
Loan Tenure
Obtaining a gold loan through a loan aggregator like Buddy Loan helps in acquiring a goof repayment cycle up to 5 years. Gold loan is a workable option in case of urgent need of money with a repayment period of more than 36 months.
Save On Processing Fees
Other loans come with processing fees attached to them, which is not the case in a loan against gold. You save on processing fees by applying for a gold loan via Buddy Loan.
The Role of Form 16 in Availing Gold Loan!
A gold loan essentially means a loan on gold or a loan against gold. Gold loans are, therefore, secured loans with gold as the collateral or security for the loan. Buddy Loan is one of the biggest loan aggregators that disburses the best gold loan.
Gold loans can be availed online (online gold loan) or through the traditional method by availing one from a bank (gold loan bank). A Buddy Loan, i.e., a gold loan online from various gold loan providers is also available either instantly or with a minimum waiting period.
A gold loan can be availed on any day of the week if one chooses to go for the instant loans that are available online through the various gold loan providers. A gold loan on Sunday, all from the comfort of your home, at the click of a button is now very much a reality.
The best gold loan offers low interest rates and high value per gram
- A wide range of banks and financial institutions provide gold loans that are the best possible fit in each unique situation, and there is a wide choice of the best gold loan offers that are available.
- In most circumstances, it is the middle to low income and the salaried people who want to avail of a gold loan to meet certain sudden and unexpected contingencies in life.
- In circumstances mentioned in the previous point, banks and financial institutions may request Form 16 as evidence of earnings to gauge the repayment potential of the individual.
- Form 16 is a form that is to be mandatorily issued by companies and organizations to individuals who have worked in their organization, irrespective of any TDS (Tax Deducted at Source) deduction from the salary of the employee. Form 16 plays a vital role when filing taxes.
Form 16 verifies employment, income, & future earnings
- Form 16, being an official document that is accepted by the governmental authorities, is a document favoured by almost all banks and financial institutions to understand the level of income of the individual and the credit potential and repayment ability of the individual.
- Loans, where the EMI (equated monthly instalment) is of a greater proportion to the income, would mean a reduced ability to repay or even inability to repay the gold loan in certain circumstances.
- Banks and financial institutions prefer to have certain ratios when it comes to the income potential as well as the EMI (equated monthly instalment). This is the area where Form 16 is of great help to banks as well as financial institutions.
Gold loans during lockdown are exceeding the expectations of the business class, farmers and retailers to keep up with the economy. With the disbursement of loans by the government, it is all the safer and more economical to hold a business tight during these upheavals.
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