Looking for gold loan above Rs 5 lakh? Get ready for stricter ID checks

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Mumbai, Aug. 6 — Customers looking for higher amount of gold loan will have to face stricter know your customer (KYC) norms check. Moreover, companies are also seeking additional details including identity and address proofs.

Gold loan companies are now going in for additional checks regarding customers seeking higher amount of gold loans, specially those above R5 lakhs.

“For a loan above Rs. 5 lakh, we have additional checks for customers who are coming for gold loan of above Rs. 5 lakh,” said George Alexander Muthoot, managing director, Muthoot Finance, India’s largest gold loan firm and president, Association of Gold Loan Companies (AGLOC).

“We send our staff to the house of the customer to gather maximum information. Permanent Account Number or PAN is also must for such customers,” he added.

“For larger ticket sizes we have an additional layer of background check on the applicant to ensure further safety to the company,” said I Unnikrishnan, deputy CEO, Manappuram Finance and vice-president, AGLOC.

The association has also begun sharing information regarding suspicious persons among members in a bid to check the case of frauds in gold loan business.

At present, there are 30 gold loan companies that are members of AGLOC and they share data about consumers coming with stolen or spurious gold and staff who have cheated these companies in the past.

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