In the market, there are various kinds of loans available for a consumer today. The consumer is left with an ample number of options when it comes to applying for loans; some of the most popular loans in the current scenario are Home Loans, Educational loans, Personal Loan, Vehicle Loan, and many more are there.
Besides these options, there are loans against your assets that provide you immediate loans in terms of any financial needs or requirements, i.e. Gold Loan.
In Indian families having gold commodities such as gold jewellery, coins, biscuits, or any other commodity of gold is a matter of pride. Moreover, individuals prefer Gold Loans over other personal loans as the Gold Loan interest rate is much less than other loans.
In today’s time, if someone wants to invest, they can confidently go for gold as it is usually brought on some special occasions or is passed on from the ancestors to their generation.
Gold can just not be used to flaunt, but it can be used as a means of investment; it can help you in many ways. With the help of Gold Loan, you can get many things done as per your needs.
Criteria for availing Gold Loan
- One can get Gold Loan from any bank or NBFCs [ non-banking financial companies]; they will provide you with instant cash for whatever reasons you might be having, like for your higher education, buying a home or a vehicle, etc.
- There are no prepayment requirements.
The process to apply for Gold Loan
You can apply for Gold Loan online as well as offline, it’s your choice.
- It’s the simplest process to avail Gold Loan as you have to give the bank or NBFCs your gold jewellery or any other gold commodity you want to pledge.
- Then the bank or NBFCs will evaluate and cross-check the gold, and after that, the gold that you gave them will remain with the bank or the NBFCs till the time you repay them the loan amount.
- After the evaluation of the gold, the loan will be disbursed within an hour.
- You will have to pay a small or a very nominal amount of fee also, though some banks have eliminated the fee charge also.
Basic ID proof [documentation] is required
- For other types of the loan rather than Gold Loan the consumer has to provide their credit history for security purposes and if the customer might not have maintained it, the loan won’t be given to that applicant.
- But in the process of Gold Loan, the credit history isn’t required; you are just asked for the basic documentation while you are giving them your gold for evaluation.
- In case you already hold an account with the bank, you just need to provide them with your assets for evaluation.
- The gold that would be given will be collateral, so the bank is not too worried about the principal.
- Basic documents will include- Your address proof, ID proof, signature proof, and a passport size photograph.
Lower Interest Rates
- The banks and the financial institutions charge a lower Gold interest rate when compared to other unsecured personal loans as they have gold in their hands as collateral.
- A few banks offer the rate of interest as low as 8% whereas, the personal loans come with a starting interest rate of 12-15%.
Flexible repayments options
- Gold Loan provides the customers with various options such as paying the rate of interest amount monthly, and the principal can be paid at the time of the closing of the loan.
- A few banks and lenders don’t levy any prepayments charges, whereas some banks do, but they ensure not to keep the penalty charges more than 1%.
Your Gold is Safe
- Gold Loan is safe; as soon as you hand over your gold in the bank’s hands, it’s their responsibility to keep it safe and secure, and whenever you will repay the amount of loan, you can get your loan back. For instant availability, you can apply for Gold Loan online at your comfort.
We have discussed all the benefits and important key points of the Gold loan. It’s the best option in case of immediate financial emergencies, and you can avail this very easily.
It can be availed with basic documentation, Gold interest rates are lower than personal loans; many online financing companies provide Gold Loans online without any hassle, so you can apply for Gold Loan online.