Why is there No Income Proof to Obtain this Loan?


As a coin has two sides, similarly these gold loans also have two sides such as advantages and disadvantages. So, let us discuss a few advantages of gold loans:

  • Faster processing: Gold loans are secured loans which do not require much of verification work of documents and very simple eligibility criteria. It does not even require a person to have a good credit score for the approval of the loan. Due to this simple procedure, the lone can be easily dispersed in a short period of time if everything is correctly presented.

  • Low rate of interest: Gold loans charge a low rate of interest if we compare them with unsecured loans, as it is a secured loan. As a collateral is attached with the gold loans, its rate of interest is quite low. Gold Loan Interest Rate is very low if we compare them with other types of loans.

  • No processing fees: Most of the banks and lenders charge zero processing fees on gold loans. Even if some of them do charge it is quite minimal or as low as 1%.

  • Income proof is not needed: Banks and lenders do not require an income proof against gold loan as it is a secured loan and it is issued against submission of collateral, that is gold. Thus, any person whether employed or unemployed can apply for a gold loan.

  • No foreclosure charges: Some of the banks do not charge any prepayment charges while some of the banks do charge a prepayment charge of up to 1%.

  • Credit score is not required: For applying for most of the loans credit score plays a major role as a deciding factor but for gold loan credit scores do not require any credit score. In case of a gold loan, the loan is sanctioned on the basis of repayment capacity and the credit history of the borrower. The amount of gold loan is also determined on the basis of the current value of gold in the market.

Now, we talk about the income proof, as mentioned above, so banks and lenders generally don’t require these proofs as they have your gold kept as a security in the form of collateral which means that if you fail to pay your monthly instalments or the principal amount of the gold loan, the banks or lenders might take your pledged gold and sell it in the market to get back their money. So, before applying for a gold loan one should make sure that they will be able to pay the monthly instalments along with the principal amount of the loan.

One of the best ways to get a gold loan is through checking various banks and money lenders and then choosing the best out of them. One of them is the Manappuram Gold Loan which has been trusted for years of its service. They require minimum documents verification some of which are Identity proof, that includes, PAN card, driving licence, voter ID, Valid passport etc., Address proof, that includes, electricity bills, water bills, telephone bills, Aadhar card, PAN card, driving licence, voter ID, Valid passport etc., Income proof, for self employed and salaried individuals, this includes the salary slips or Form 60, bank account statements of the last 6 months etc., Other necessary documents such as passport size photographs, proof of 5 years of business continuity (for self employed individuals) etc. One must make sure to carry all the documents carefully along with the originals and the photocopied ones so that there is no dekay in the process.Then they offer loans at a low rate of interest with a flexible tenure and a processing fees which is quite less which makes the process very easy.