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

Here are the typical key eligibility criteria for MSMEs (Micro, Small, and Medium Enterprises) to avail of a gold loan:

• The applicant availing the loan should usually be between 18-75 years of age.
• They must be an Indian citizen and provide Know Your Customer (KYC) documents like PAN card and address proof.
• The business should be registered in India with proof of registration and incorporation documents.
• Minimum of 2 years of business operations is usually preferred. Startups may also be considered.
• Only gold jewellery and ornaments between 18 and 24 carats purity is usually preferred.
•  An invoice or documentation to show proof of gold ownership is required.
•  Most loan providers require a minimum gold amount. For example, 10g-50g.
• Credit history and financial statements may be checked to assess repayment capacity.
• Residence proof is needed through utility bills or rent agreements.
• The Loan-to-Value (LTV) is decided based on the quality of gold pledged and the loan amount sought.

Therefore, basic KYC documents, proof of gold ownership and sufficient gold assets are key to meeting eligibility criteria for MSME gold loans."