J & K Bank Gold Loan Features
Gold is one of the most popular loans nowadays since it is easier to obtain than a personal loan. The reason for this is that when a gold loan is a secured loan in which you must pledge your gold as collateral, many financial institutions are willing to grant it. The J & K Bank Gold Loan Approval Process is simple and quick. They give you low-interest loans secured by your gold.
You can visit Dialabank to know more information about gold loans.
Features of Gold Loan-
- A gold loan can be used to cover a wide range of expenses, including educational costs, medical bills, vacations, and so on.
- The gold that has been insured by a bank or financial institution acts as insurance or collateral for the loan amount.
- The contract can last anywhere from three to thirty-six months.
- If the borrower repays the interest on a gold loan on time, several lenders may offer a discount on the current interest rate. This rebate can range from 1% to 2% of the original interest rate.
J & K Bank Gold Loan Eligibility
| Minimum and Maximum Age |
21 Yrs – 60 Yrs
Note: However, many banks require a minimum age of 23 years |
| Loan Amount |
Up to ₹ 2 Cr. Some banks restrict maximum eligibility to ₹ 20 Lakh
Interest rates are lower for a higher loan amount |
| Employment Type |
Salaried and self-employed both are eligible
Businessmen are increasingly taking gold loans to meet their working capital requirements. In fact, housewives, senior citizens who are not eligible for other loans because they have no income proofs can easily avail of gold loans. |
| Quality of Gold |
Gold ornaments should range in between 18 to 24 Carats
An average gold price of 22-carat gold for the preceding 30 days is adjusted down for purity. So, the price of 20 Carat jewellery can be estimated by multiplying the price of 22 Carat jewellery by a factor of 20/22 |
| CIBIL Score |
Banks do not check CIBIL score for granting a gold loan
However, your repayment track record for a gold loan is counted towards your CIBIL score and hence, can be instrumental in building your CIBIL score |
| Gold ornaments that can be used for availing loan |
Gold bars and coins
Gold with 18-24 carat purity |
| Employment track record and income proofs |
Banks do not check your job stability or business stability to sanction you a gold loan. Gold loans are granted without income proofs. You only need to submit your basic KYC documents such as address proof, identity proof, and an Aadhaar card to avail of this loan.
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J & K Bank Gold Loan Documents Required
At the time of application the following documents are required:
- Proof of the citizenship of India
- Duly filled application form
- 2 passport-sized photographs
- Applicant’s KYC documents to establish Identity and Address
- Salary/ Income Proof
- Witness Letter in case of illiterate borrowers
- In the case of Agriculture Loan of more than Rs. 1 lac, land proof
- Certificate by the Jewel Appraiser (Bank will arrange)
At the time of disbursement the following documents are required:
- Demand Promissory Note & Demand Promissory Note Take Delivery Letter
- Gold Ornaments Take Delivery Letter
- Arrangement Letter
J & K Bank Gold Loan Approval Process
The following are some basic procedures in the approval of a gold loan:
- Visit the J & K Bank branch closest to you.
- Fill out the bank’s application and submit it along with all of the relevant documents to get your loan approved.
- Bring your gold to the bank for the appraisal; the bank will determine the loan amount following the appraisal.
- Examine the loan’s common terms, such as tenure and interest rate, with the bank’s representative.
- All of the terms will be finalized by the bank, and your application will be reviewed for a period of time.
- Following approval, the bank will assist you with the rest of the process and disbursement of the loan funds.
FAQs on J & K Bank Gold Loan Approval Process
✅ Is it safe to take out a gold loan?
Not checking the creditor’s credibility: A gold loan is a secured loan, which means it is backed up by something tangible (gold in this case). Until the debt is fully paid off, this collateral remains with the creditor or lender. This is a great approach to give creditor security, but what about the borrower?
✅ What happens if the gold loan isn’t paid back?
Because the gold was pledged as collateral, failing to repay the loan (three consecutive installments or more) will result in the gold being auctioned off by the bank or financial institution. This is now a non-performing asset that will be liquidated.
✅ Is it possible to sell gold at a bank?
You can’t resell it to a bank. Banks are prohibited from purchasing gold coins by the Reserve Bank of India (RBI). Even if you buy gold from a bank or have previously done so, you will not be able to sell it back to them.
