Gold loans have become a reliable and fast way for individuals to access funds. In India, India Infoline Finance (IIFL Finance) offers competitive gold loan options, providing a quick solution for financial needs. The loan is secured by gold as collateral, making it a viable choice for many.
This article will help you understand the key aspects of IIFL Gold Loan, including eligibility criteria, required documents, interest rates, and how to apply for the loan through Bajaj Markets.
IIFL Gold Loan Eligibility Criteria
To qualify for an IIFL Gold Loan, applicants must meet the following eligibility requirements:
Age Limit
The borrower must be between 18 and 70 years of age. This ensures that the applicant is within the working age and has the ability to repay the loan.
Occupation
IIFL Finance Gold Loan is available to a wide variety of applicants, including salaried individuals, self-employed professionals, non-salaried individuals, farmers, traders, and others. This makes the loan accessible to a broader spectrum of people, including those in rural areas.
Gold Purity
The gold pledged as collateral should be between 18 and 22 karats in purity. Higher purity gold has a higher market value, which influences the loan amount sanctioned. This condition ensures that the lender has valuable collateral in case of default.
Key Terms Explained
Loan-to-Value (LTV)
This ratio indicates the percentage of the gold’s value that can be loaned out. IIFL Finance provides an LTV of up to 75%. For example, if your gold is worth ₹1 lakh, you can borrow up to ₹75,000, with the remaining 25% acting as a safety buffer for the lender.
Interest Rate
The starting interest rate for IIFL Gold Loans is as low as 0.99% per month (11.88% per annum). This competitive rate ensures that borrowers have access to funds at an affordable cost, making it an attractive option compared to other types of loans.
Documents Required for an IIFL Gold Loan
IIFL Finance keeps the documentation process simple, requiring the following documents:
Identity Proof
One of the following government-issued IDs will suffice: PAN card, Aadhaar card, voter ID, driving license, or passport.
Proof of Residence
Documents like a driving license, Aadhaar card, voter ID, utility bills, bank statements, passport, or a rent agreement can be used to verify your address.
Additional Documents
Depending on the applicant’s profile, IIFL Finance may request additional documents, such as proof of income or a valuation certificate for the gold being pledged.
Interest Rates and Loan-to-Value (LTV) Ratio
Interest Rate
The interest rate for IIFL Finance Gold Loan starts from 0.99% per month (11.88% per annum). This is a highly competitive rate compared to traditional personal loans or credit card advances, offering borrowers a lower cost of borrowing.
Loan-to-Value (LTV)
IIFL Finance provides an LTV of up to 75%, meaning you can borrow up to 75% of the appraised value of your gold. This ensures that you can access a substantial loan amount while keeping the loan-to-collateral risk low for the lender.
IIFL Finance Gold Loan on Bajaj Markets
Applying for an IIFL Finance Gold Loan through Bajaj Markets provides a convenient and streamlined process. Bajaj Markets, a leading financial marketplace, allows borrowers to compare different loan products and apply for IIFL Finance Gold Loan directly through their platform.
Benefits of Applying Through Bajaj Markets
Comparison of Loan Options
Bajaj Markets enables you to compare IIFL Finance Gold Loan with other gold loan providers, helping you make an informed decision.
Ease of Application
You can easily apply for an IIFL Gold Loan Online through Bajaj Markets, saving time and effort in the process.
Exclusive Offers
Occasionally, Bajaj Markets provides exclusive offers, such as lower processing fees or special interest rates, giving you an added advantage when applying for the loan.
By using Bajaj Markets, you can ensure that you are getting the best deal available, with the convenience of applying for the loan online.
Advantages of IIFL Gold Loan
IIFL Finance Gold Loan offers several benefits that make it an attractive option for those in need of quick financial assistance:
Quick Disbursal
Gold loans are processed faster than traditional loans because gold is a valuable asset that acts as immediate collateral. IIFL Finance ensures quick approval and disbursal of funds, often within a few hours.
No Credit History Required
Unlike personal loans, IIFL Gold Loan does not require a credit score check, making it accessible to individuals who may have low or no credit scores.
Flexible Repayment Options
IIFL Finance provides multiple repayment options, including interest-only payments, where you can repay the principal amount later, thus offering flexibility in managing your finances.
Security
Since the loan is secured by gold, borrowers can access significant amounts of money without worrying about high interest rates or collateral-based rejection, as long as the gold pledged meets the lender’s requirements.
Conclusion
IIFL Gold Loan offers a secure, quick, and reliable option for individuals seeking immediate funds, backed by their gold. With competitive interest rates, minimal documentation, and flexible repayment options, it is an excellent choice for anyone in need of urgent financial assistance.
By applying for the loan through Bajaj Markets, borrowers can further benefit from an easy, efficient online application process and potentially better deals. Whether you are a salaried individual, farmer, or self-employed, IIFL Finance Gold Loan offers an accessible and affordable solution for securing a loan when you need it the most.