2 min read
05 Jan 2021

How to avail of a gold loan with jewellery bill?

For decades, gold has belonged to the preferred asset class for Indian investors as it ensures significant growth and prospect. This yellow metal is one of the most acceptable collaterals for raising funds against it, and hence the jewellery sector is significantly growing. Loan against gold offers the easiest and most convenient way to meet financial urgencies, which is why it is immensely popular.

But many borrowers are doubtful to visit organised lenders for a gold loan without a bill to substantiate their jewellery purchase. Fortunately, bills or invoices do not fall under the list of necessary documents required when applying for this credit.

How to get a jewellery loan without an invoice?

Owing to the various advantages, including an attractive gold loan interest rate, instant processing and disbursal, flexible repayment options and more, it is an ideal fit for meeting varied financial needs. However, there is a major concern involved when obtaining such advances. Since a loan against gold is obtained by pledging high-value gold ornaments, lenders worry about the ownership history of such gold items. This is because they do not want to get involved in legal hassles or scams.

Nonetheless, individuals can still apply for a gold loan by pledging their idle gold. It is possible to avail of such advances without invoices.

Here are some of the steps discussed in obtaining funds against gold:

  1. First, individuals need to fill out a gold loan application form and submit it online or at the branch. Along with that, individuals need to submit the necessary documents
  2. Individuals need to submit gold loan documents
  3. Individuals are only required to submit pure gold ornaments to lenders
  4. The lender evaluates the pledged gold items by appointing an expert. Then, the amount is sanctioned depending on the evaluation communicated to the borrower with a loan agreement or sanction letter.
  5. Borrowers will receive money after the acceptance of the letter.

A gold loan without an invoice is given based on gold value. An independent assayer submits a report. Individuals need to accept the report after thoroughly reading it. The terms and conditions stated in the report include a declaration of the real ownership of the pledged items with no defects. The amount will be sanctioned entirely on the basis of weight and purity of pledged gold articles and also on the LTV ratio, which is 75%.

Process to be followed to apply for a gold loan without a jewellery bill

As a secured variant, gold loan processing and disbursal are faster than other financial products. Therefore, individuals possessing considerable and authentic gold articles can obtain high loan values. Moreover, there are no strict eligibility parameters and documentation involved when availing such advances.

Although there is no rigid gold loan policy for availing this credit, if individuals pledge gold articles without bills or invoices, lenders follow a different procedure before sanctioning the amount. The pledged jewellery without a bill can be evaluated within a few minutes with a combination of human expertise and technology.

Usually, valuation experts assess the quality and overall value of the pledged jewellery and classify them into two parts- soldered gold jewellery and solid gold jewellery. Moreover, they take help of an XRF machine to ascertain the jewellery’s purity.

Understanding the value of gold

As per experts, solid gold ornaments are easy to evaluate compared to soldered ones as the latter includes gemstones, intricate designs, etc. Therefore, the sanctioned amount for a gold loan without an invoice will be based on the market value of pledged items and not on the precious stones on the ornament.
Experts use the following formula mentioned below to evaluate the value of gold:

Value of gold in the jewel = (Gold weight x Gold purity x Gold rate/day)/12

Apart from these, individuals must also research the gold loan rate per gram before applying for it to maximise benefits. Lenders do not impose lengthy documentation since this funding option requires liquid gold. If the repayment is not made on time, lenders have the authority to auction the pledged items.

One of the major concerns involved when opting for a gold loan without an invoice is its security and safety. However, with reputed lenders like Bajaj Finserv, borrowers do not have to worry about their ornaments as they are kept secured in the vaults under constant e-surveillance. Moreover, they ensure compensation in the case of theft or other unforeseen circumstances.

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