Gold Loan is the best way of borrowing money by using your gold items as collateral. Nowadays many banks have started loaning money through this scheme.
What is a gold loan?
It is a secured loan, where individuals have to pledge their gold ornaments, pieces, or coins to get funds. However, banks will charge an interest rate if you repay the loan amount after some time. You’ll have to pay a 7%-13% interest rate every month along with the EMI amount. It is the best way if you’re looking to get funds immediately. A lot of banks, private institutions, and NBFCs (Non-Banking Financial Companies) provide the facility of gold loans.
You can quickly get the loan amount disbursed within 1-2 hours of submitting the application form. The entire loan process is speedy and hassle-free. Applying for a gold loan can help customers in the long run.
Advantages of gold loan
Gold loan eligibility
Age:- 18-64 Years
Profession:- Trader, Farmers, Professor, Salaried, Self-employed, Unemployment, Housewife, etc.
Gold form accepted by the banks: Gold ornaments, coins, or pieces. Banks don’t accept gold bullion or bars.
Identity proof: Aadhar Card, Pan Card, Passport, Driving License, or Voter ID Card.
Address proof:- Electricity Bill, Water Bill, Telephone Bill, Postpaid Bills, etc.
Essential components of gold loan
Gold loan procedure
You can apply for a gold loan facility using both online and offline methods. The entire idea of a gold loan is straightforward – you just have to pledge your gold ornament to get the loan amount. So firstly, you’ll have to fill the application form and attach all the essential KYC documents required by the bank once the documentation process is completed.
After that, banks will measure the purity and weight of your gold to decide the loan amount. You’ll have to then agree to all the terms and conditions regarding repayment, interest rate, and gold loan. And after it is done, the bank will disburse the loan amount to your bank account within 30 minutes.
A lot of banks like SBI gold loan, Axis Bank, ICICI Bank, etc., will ask you to register yourselves online, so you can easily track your repayment and application process.
Ways to repay your gold loan
Banks provide customers with the complete flexibility to choose a repayment structure according to their capacity. There are primarily four repayment options that every bank will give. These are mentioned below:
Conclusion:-
There are a lot of banks and NBFCs that provide the facility of a gold loan. So it’s important to compare all the options available and then choose an ideal gold loan option according to your repayment capacity.
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