Gold is the most regarded safe house for financial assistance when you are in sudden need. So investors always look for investing in gold to get safety and future aid. Gold is the most liquid form of assets that you should have as an investment option. The yellow metal helps people in financial need even from decades ago.
With the current financial advancements, the gold loan is the best option for helping anyone in financial needs. When you are in financial need, and you have gold in your hand, you can directly go to the financial provider to get a gold loan. The financial provider will assess the purity of the gold you pledge and estimate the gold loan amount you can get.
Also compared to other loan types, gold loan provides flexible tenure and repayment options to satisfy your financial needs. But choose the trustworthy financial provider to get your gold loan. With a gold loan, you can avail money instantly to meet your financial needs up to Rs.50 lakhs.
Here are the things about a gold loan that will help you understand it better:
Features of Gold Loan:
Gold loan is a secured credit where the gold you pledge for the loan will act as a collateral for the loan. Both banks and NBFCs offer gold loans for people who are in need but make sure to choose the best among them. Here are the standard features that you can get when you apply for a gold loan:
- No or minimum processing and foreclosure charges make it a better loan option than other loan types.
- Quick approvals and instant cash disbursals are other critical aspects of a gold loan.
- Loan To Value (LTV) ratio for a gold loan is higher than other loans. You can avail from 60 – 90% of the gold’s value as the loan amount.
- With a gold loan, you can avail flexible repayment options.
- The gold that you pledge for your loan will be safe with the financial provider until you repay the loan.
- Even when you have a lower credit score, you don’t have to worry, and you can avail a gold loan.
- With other loan types, the financial provider might ask for the purpose you are getting the loan. But with a gold loan, you don’t have to tell the purpose of the loan to your financial provider.
- The interest rates for a gold loan are lower than that of loan types, and that is another advantage of availing a gold loan.
- You can choose the repayment tenure for the gold loan depending upon your needs and financial status, and the gold loan repayment tenure is up to 36 months.
- The gold loan amount that you get depends on the value of the gold you pledge. With a gold loan, you can avail up to Rs.50 lakhs of instant loan.
How Can I Avail A Gold Loan?
Availing a gold loan when you are in need is an extremely easy and straightforward process. Below are the steps that you must track to apply for a gold loan:
Choose The Most Suitable Lender:
Many financial providers offer financial services for people who are in need, and the gold loan is one of the best loan types that people prefer to avail. You should do thorough research on all the financial providers and choose the lender that is best suitable for you. Honesty, interest rate, maximum loan amount, processing & other additional charges, repayment tenure & repayment options are to be looked at.
Fix An Appointment With The Lender:
Once when you have filtered out a financial provider, the next important thing you should do is fix an appointment with them. This avoids unnecessary delays and waits during your visit. Also, when you call, you can get a better idea on their timings.
Visit The Lender:
When you make a physical appearance to the financial provider, you should make sure to carry your gold and the necessary documents that you need. When you avail a gold loan, you should bring your PAN card, address proof, and ID proof.
Gold Evaluation Is Important:
The evaluation of gold is very vital. When you go to your financial provider with your gold, the first thing they will do is check the quality and the quantity of the gold you brought. Upon precise estimation, they will decide upon the loan amount you can avail with the gold that you have pledged. The purity of the gold is another feature that you should be aware of, the higher the purity the best price you can get.
Fill-in Application & Disbursal Form:
The two primary forms that you have to fill-in while applying for the loan is the application form and loan disbursal form. When you have filled in the details, make sure the forms are duly signed as well. The data that you have entered in the document should be correct and precise without mistakes as it will result in cancellation of the loan.
The financial providers will offer you two options to get the loan amount. You can either choose to get it as cash or transfer it to your bank account – whichever is comfortable; you can choose that option. Make sure to ask your financial provider regarding this during the loan process to avoid confusion later. While getting cash, there will be restrictions on the amount you can avail also check with your financial provider regarding the limit.
Benefits of A Gold Loan:
When you aren’t sure about the benefits of gold loan, here are some things that will help you understand it better:
With a gold loan, you don’t have to worry about long processes that are time-consuming. The loan process for a gold loan is very simple and straightforward, so is the disbursal time. When you opt for a loan, you can be sure to get the amount in your account within hours.
Low Credit Individuals:
Even when you have a bad credit score, you don’t have to worry about getting a gold loan. With a gold loan, you don’t have to worry about getting your loan rejected because of a lower credit score. As the gold loan is secured, you can avail it even when you have a terrible credit history.
Attractive Interest Rates:
When compared to other loan products, gold loans come with desirable and lower interest rates. You can avail a gold loan for interest rates as less as 6% to a maximum of 22% that will vary depending on the financial provider, loan product and tenure.
High Loan Value:
With a gold loan, you can avail up to Rs.50 lakhs provided you provide enough gold. Conditional upon the amount of gold you pledge for your loan avail the loan amount.
Gold loan offers flexible repayment options that will help you repay the loan without any financial stress. With a gold loan, you can pay the interest rate every month, and the loan amount at the tenure ends as one option. With another option, you can make a partial payment of both the amounts twice or thrice during the loan tenure. Other than this you can pay like usual EMI options that other loan products offer you.
When you get a pure understanding of the gold loan, you can avail it without any worries about repaying it or the strategy on how to use it effectively.