What KYC Documents Are Required For A Gold Loan?

With technological advancement, financial organizations, too, have adapted to meet the growing expectations and needs of their customers. New-age financial companies have brought banking and other financial services right to your screens. You can now open a bank account, apply for a loan and transact at the click of a button, sometimes not even requiring a physical visit ever. However, with the increasing ease of doing financial business, comes a host of newer risk factors.

Financial institutions have to come up with newer and better approaches to establish the genuineness of the person/ business behind the screen.

KYC is a regulatory procedure that has been mandated to be followed by financial companies through a set of KYC documents. Thus, KYC documents help banks, NBFCs, and other financial organizations establish the legitimacy of a customer’s identity and identify their risk factors. For lenders, compliant and verified KYC documents provided for loans assure that the disbursed funds shall not be used for illegal activities.

What is KYC?

KYC stands for Know Your Customer or Know your Client. The KYC process has been put in place by the Reserve Bank of India (RBI) as per the recommendations of the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT). The main objective of KYC is to prevent financial crimes and fraud and counter illegal activities such as identity theft, terror funding, and money laundering. The authenticity of the individual and non-individual customers is established through independent verification of the KYC documents provided by the customer. A customer has to submit his KYC before he starts investing in various instruments such as mutual funds, fixed deposits, bank accounts, etc or applying for loans.

Types of KYC

The main purpose of KYC documents is to authenticate the customer through identity and address proofs provided by the customer. The process could vary slightly for different financial companies. Lenders could ask for additional KYC documents for loans as the risk is higher for them. As most financial transactions and services are being digitized, the KYC process has also been aligned accordingly. Now, both online and offline submission and verification of KYC documents are possible.

• Aadhaar-Based KYC: An Aadhar Card serves as a valid document for both identity and address proof. An Aadhar-based KYC can be completed in two ways:

  • Via Aadhar OTP: After submitting your details online, a One-Time Password (OTP) is sent to the registered mobile number, provided at the time of the Aadhar Card application. After verifying the OTP, your KYC details are captured.

  • Via Aadhaar-based Biometric: In Aadhar-based Biometric KYC, one has to apply for KYC online and an executive from the financial company visits your home/office for biometric verification.

   

• Offline KYC: Here, you have to physically visit the branch of a bank or NBFC, fill out the KYC form and attach the requisite identity and address proofs. The financial company then verifies your KYC documents independently. This is a longer duration process than online KYC.

KYC Documents Required for Gold Loan Application

Gold loans have become quite popular owing to minimal documentation, easy processing, and fast disbursal. And since it is a secured loan, gold loan interest rates are comparatively lower than unsecured loans such as personal loans. Any person above the age of 18 who is the lawful owner of the to-be-pledged gold articles is eligible for a gold loan. For a Muthoot Finance Gold Loan, no documents regarding the income proof or CIBIL score report of the borrower need to be furnished and come with added benefits of gold loan at-home and doorstep services.

The documents required for KYC while applying for a gold loan are as follows:

• Any one of the following as identity proof:

  • Aadhar card

  • PAN card

  • Voter's ID

  • Driving license

  • Passport(unexpired)

  • Ration Card

  • Identity card issued by a government authority, PSU, or nationalized bank, containing the photograph of the customer.

  • Job card from NREGA

   

• Any one of the following as address proof:

  • Ration Card

  • Copy of bank passbook with photograph

  • Bank Account Statement

  • Documents issued by a government authority, PSU, or nationalized bank, containing the address of the customer

  • A Lease agreement of local address

  • Utility bills such as electricity, phone, gas, or water

   

Once the KYC documents are processed and verified by the lender, the loan is usually disbursed very quickly. You can submit your KYC documents online for a gold loan from Muthoot Finance.

Conclusion

Muthoot Finance is one of the most trusted gold loan providers in the country. In addition to an array of attractive gold loan schemes, the gold loan interest rates offered are unbeatable. You can easily check your eligibility and calculate your EMI online. Muthoot Finance is a one-stop shop for all your gold loan requirements.