Gold has always been an essential part of Indian culture and Indian families. According to the World Gold Council, Indian households are estimated to have around 25,000 tons of gold, often kept for emergencies. When financial challenges arise, many people turn to banks, Non-Banking Financial Companies (NBFCs), and other financial institutions to secure loans against their gold.
However, many people also often hesitate to approach these financial institutions because they don't have the gold jewellery bill. Fortunately, getting a gold loan without bill from some banks and NBFCs is possible. Continue reading to know how.
How to Get a Gold Loan Without Bill
Are you wondering how to get a gold loan without bill? Here's what you need to know:
- Application: Start by filling out an application form. You can submit this form either online or at your nearest bank or NBFC branch. Along with the application, you must provide copies of the required documents.
- Documents: The necessary documents include proof of identity (such as a PAN card, Aadhaar card, voter ID, or passport) and proof of address (such as utility bills).
- Submission of Gold: You must submit your gold (coins, jewellery, or bars) to the financial institutions. They will place the gold in sealed packets for security purposes.
- Valuation: The financial institutions will arrange for an independent expert to assess the value of your gold. The loan amount will be based on this valuation. You will receive a credit agreement or sanction letter outlining the terms.
- Loan Disbursement: Once you accept the terms and conditions, the gold loan rate per gram amount will be disbursed to you.
Disclaimer: The exact process of submission of application and appraisal of gold articles may differ with the financial institution.
Understanding Gold Valuation
Gold valuation might sound complex, but it's quick and straightforward. The valuation usually takes only a few minutes and involves a mix of expert judgement and technology.
The banking experts will evaluate your jewellery to determine its quality and value. Two main categories of gold jewellery are solid gold and soldered gold. Solid gold jewellery includes bangles, chains, and thick ear studs. This type of jewellery is easier to evaluate than soldered jewellery, which may include intricate designs or gemstones.
The value of your gold is determined using this formula:
Value of Gold in the jewellery = (Gold Weight x Gold Purity x Day Gold Rate) / 24
Remember that financial institutions generally don't consider the value of any stones set in your jewellery. The gold loan rate per gram will be based solely on the value of the gold.
Because gold is a liquid asset, financial institutions don't require as much documentation as they would for other loans, such as home loans. If you default on the loan or if the gold turns out to be fraudulently obtained, loan providers have the right to auction the gold.
Ensuring the Security of Your Gold
The safety and security of your pledged gold is a common concern, particularly if you lack proof of ownership with a jewellery bill.
When you select a reputed gold loan provider, like Shriram Finance, rest assured that your gold is stored securely. Upon handing over your gold, you will receive a detailed receipt, including its value and other pertinent information. Keep the receipt safe. You must present it when repaying the loan to get your gold back.
Conclusion
Obtaining a gold loan without bill is feasible and straightforward with the appropriate financial institutions. Gold loans provide a convenient method to obtain funds during financial hardships, regardless of the absence of the original invoice for your gold.
To apply for a loan, submit your application, provide the required documents, and give your gold for valuation. After assessing its value, the loan provider will provide the loan amount. Rest assured, reputable NBFCs like Shriram Finance will keep your gold safe until you're ready to reclaim it.
