For years, gold has been a top choice for Indian investors due to its consistent growth potential. It is a widely accepted collateral for obtaining funds when needed. Gold loans provide a straightforward solution for financial emergencies, making them highly popular.
However, some borrowers hesitate to approach organised lenders for a gold loan if they lack a bill to prove their jewellery purchase. Luckily, bills or invoices are not among the necessary documents needed when applying for this loan.
Read Also: Loan Against Jewellery
How to get a jewellery loan without an invoice?
Due to its numerous benefits, such as an attractive gold loan interest rate, quick processing, flexible repayments, and more, it is an ideal solution for diverse financial needs. However, a major concern arises when obtaining such loans because lenders want to ensure the legitimacy of the pledged gold items to avoid legal issues.
Nevertheless, you can still apply for a gold loan by pledging your unused gold, even without invoices. Here are the steps to get funds against gold:
- First, fill out a gold loan application form online or at your nearest branch.
- Submit the necessary gold loan documents for verification.
- Get your 18-22 karat gold jewellery evaluated to get the maximum value.
- Select a suitable loan tenure as per your convenience and submit the final application.
- Your loan will be disbursed post approval within as little as 15 minutes*.
A gold loan without an invoice is based on the gold's value, assessed by an independent appraiser. The report includes a declaration of ownership and purity, and the loan amount is determined by the weight and purity of the gold ornaments and a loan-to-value (LTV) ratio, usually set at up to 75%, as per the RBI guidelines.
How to apply for a gold loan without a bill
As a secured option, gold loan processing and disbursement happen faster than with other financial products. This means that if you have genuine and valuable gold items, you can access higher loan amounts. Plus, there are no strict eligibility criteria or extensive documentation required for these loans.
However, when pledging gold items without bills or invoices, there is a different procedure. Lenders use a combination of human expertise and technology to quickly evaluate the jewellery. Valuation experts assess the quality and overall value of the jewellery, categorising it into soldered gold jewellery and solid gold jewellery. They also use an XRF machine to determine its 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 jewellery.
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, you must also research the gold loan rate per gram before applying for the loan to get maximise value.
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 Finance, you do not have to worry about your jewellery as it is kept in highly secure vaults under constant e-surveillance.
Facts about gold loan
- It is often easier to get a loan using gold without a receipt than to get a personal loan. This is because personal loans are not backed by anything, unlike loans against gold jewellery.
- Even if you work for yourself or stay at home, you can still get a loan at a low gold loan interest rate, Starting at just from 9.50% p.a. To stay clear from unfair trade practices and experience transparent process, it is advised to take loans from trusted financial institutions.
- It is simple to get a gold loan against jewellery that is high in karat value. With Bajaj Finance, you do not need to undergo complex paperwork. You only need your 18-22 karat gold jewellery, and your basic KYC documents for verification.
- If your credit score is less than perfect, you can still get a loan for your jewellery without a receipt because it is a secured loan. And if you want to get your jewellery back quickly, you can pay off the loan without any additional charges.
- You have the option to reuse your gold as collateral to secure additional credit. Additionally, you can access an overdraft facility by leveraging your gold holdings. This means you can borrow more money against your gold or have a line of credit based on its value, giving you added financial flexibility.
