What Are the Eligibility Criteria for a Gold Loan for Education?

Typically, the key eligibility criteria to qualify for a gold loan for education include:

• Age: Most loan providers require the applicant to be between 18 and 70 years old. Some institutions may extend this range up to 75 years. For students, the minimum age is usually 18 years.
• Collateral: Sufficient gold jewellery, typically at least 10-20 grams, of acceptable quality and purity (typically 18 to 24 carats is recommended). Hallmarked gold ornaments are preferred.
• Gold Ownership: The gold ornaments pledged should be owned by the applicant or immediate family members like parents.
• Loan Amount: The loan amount depends on the value of the gold pledged but typically ranges from ₹50,000 to ₹20 lakhs.
• Income and Financial Status Proof: While proof of income may not always be mandatory due to the secured nature of gold loans, some lending institutions may still request documents establishing the borrower’s ability to repay the loan. Loan providers require you to provide proof of income or documents establishing your ability to repay the loan. Employed applicants may need salary slips.
• Credit History: A good credit track record is preferred, though it is not mandatory. Defaults may lead to rejection.
• Proof of Residence: Financial institutions may give preference to Indian citizens and residents having local address proof.

Meeting the eligibility criteria expands funding options as many lenders offer customized gold loans for education needs.