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Is a PAN card mandatory for a gold loan

Is a PAN card mandatory for a gold loan

Is a PAN card mandatory for a gold loan

A PAN card is not a mandatory requirement to apply for a gold loan, but there are some other documents required to avail a gold loan. Read on to know what these documents are and what things are to be kept in mind while applying for a gold loan.

What is a gold loan?

We Indians love gold. From the birth of a child to weddings and house-warmings, every occasion features this precious metal. The yellow metal is the keeper of value, and truth be told, Indians are one of the largest consumers of gold in the world. For us, gold is a symbol of status, financial security, and cultural legacy. Our elders have known the cycle of life, and hence, advocate to buy gold on a hay day to keep you safe on a rainy day! It might be helpful to understand how you can make the best use of the asset and learn the process involved to take out a gold loan. We will help you understand the nitty-gritty.

Applying for a Gold Loan

When you go to seek credit on your assets, gold in this case, typically you can avail of up to 75% of the pledged gold’s value as credit. The financing is quick and disbursal in most cases is on the same day and is charged as simple interest. This means you can liquidate your asset anytime.

So be it a wedding, child’s education, you wish to start your own business, or fund an existing one, whatever may be the reason be, if you have decided to take out a loan against the jewelry, let us get to the details of what all is needed to get the sanctions.

Gold Loan Features

Gold is called a glittering asset because it comes with several benefits, such as the following, for the owner looking for this type of asset-backed borrowing.

1. The good news is you don't need to have a prior credit history or even income proof to borrow money against this asset. Just carry the gold with you and get up to 75% of the value as credit.

2. There is no collateral or security needed because the gold you will pledge will be the security.

3. You can borrow from as low as INR 10,000 up to INR 20 lakh.

4. Capital disbursal is generally done within minutes, after a quick check of the fair value of the commodity.

5. The loan is sanctioned at customized and competitive interest rates starting from just 11.5% p.a. simple interest.

6. The gold is kept under safe custody by the financial institution issuing the credit and is also insured. This means that you don't have to worry about the theft of your deposit and in case of the borrower’s death, the loan is paid off by the insurer, and the pledged gold is returned to the family.

7. You can repay the loan in EMIs or non-EMI schemes. At Shriram Finance, there are no foreclosure charges as well. You have the option to choose from a flexible tenure and a payment plan at your convenience.

8. The flexible tenure can range from 12 to 36 months based on your requirements and renew it if your situation requires it.

Gold Loan Eligibility

While most individuals are eligible for taking out a loan against ornaments and the process is very easy, there are some simple eligibility criteria such as:

1. The applicant should be in the age group of 18 years to 60 years. (at the time of loan maturity.)

2. Shriram Finance sanctions loans against gold jewelry to professionals, self-employed, business owners, and other individuals, meaning most individuals are covered.

Documents Required for Gold Loan

A PAN card is not a mandatory document to apply for a gold loan. Although, you need to ensure that you have the following documents when you go to the nearest Shriram Finance Branch to pledge your asset in lieu of capital:

1. An Aadhar Card is a mandatory requirement.

2. Identity proof document (any one)- PAN card, Passport, Driving License, Voter’s ID

3. Address proof document (any one) - Passport, Driving License, Gas Bill with Gas Book

How to Apply for a Gold Loan

You can visit a branch office and speak to the customer relationship manager about the loan. These days, the application process is also available online. You can read more about gold loan facilities here.

1. The online application process takes about 5 minutes to fill. You can apply here.

2. The application process is available in multiple languages and needs minimum documentation.

3. Post the application, an executive will reach out to you to verify details and guide you to the nearest branch office.

4. You have to go to the nearest branch to deposit the collateral with a valid ID and address proof.

5. The quality and weight of gold pledged are checked to determine the sanctioned amount.

6. If the application is in order and the verification is complete, the loan will be approved. The approvals are usually quick, and disbursement is instant. You can read more about it here.

7. The entire process is transparent. The processing charges are minimal and start from 0.1%.


Shriram Finance is the most preferred financial institution in India. With their customer-centric simple and transparent processes, customers have various benefits. There are various schemes with different tenure on financing. The duration can range from 12 to 36 months. The interest rate starts at just 11.5% per annum. The verification process is quick and disbursal within minutes. Any individual can apply for credit without income proof and if you wish to repay early, there are no early payment charges. A win-win for everyone!

A piece of advice for loan seekers, while you can get the capital at any credit score, it is advised that you keep a healthy credit score to get the best interest rate. 

Get a gold loan at low interest rates