A gold loan is one of the easiest and quickest ways to get funds for personal or business requirements. A gold loan is a secured loan where customer pledges the gold ornament they hold as a collateral deposit against the fund they want to receive. The loan amount lenders sanction is typically a certain percentage of gold’s value. Just like every other loan, you can repay it with the help of monthly installments. And once the loan is fully repaid; you can receive your gold articles back. However, you need to know that only gold ornaments or jewelry are used to calculate the value. Others such as gold coins, bracelets, necklaces, pendants, and earrings are excluded from the calculations.
Furthermore, a Gold loan is a one-stop solution for all your financial needs. It can be used to settle all your financial needs such as medical emergencies, agriculture, educational purposes, and so on. Gold loans have lots of features and benefits. It allows a greater disbursal amount and you can draw up to 5 ores. One of the best parts is that a Gold loan comes with a lower interest rate. This makes it perfect for all your financial requirements. There are so many lenders that offer Gold loans and to apply for it, you need to shop around and compare different lenders. This will give you a higher chance of getting the best interest rate.
Features & Benefits of a Gold loan
Just like I have mentioned above, different lenders offer gold loans and they have different features. However, below are the common features offered by a Gold loan;
- The loan disbursal time is minimal
- There is no requirement of an excellent good credit history for application as it is a secured loan
- It is an easy and quick way to meet one’s financial needs as opposed to other loans
- The tenure options can range from a minimum of three months to a maximum of forty-eight months.
- The gold pledge by a financial institution or the bank acts as the collateral or security against which the loan amount is provided.
- Faster and affordable than personal loans
- Attractive interest rates
- Complete safety of jewelry
- Amazing interest rates
- Simple and easy documentation
- No EMIs. Repayment at the end of loan tenure
To enjoy all of these benefits, you can apply for a Gold loan from any lender of your choice. Just make sure you compare good rates and choose the best one.
Who can apply for a gold loan?
Anybody above the age of 18 years old can apply for a gold loan. As long as the individual is the actual owner of the ornament they present they are free to apply. The Banks are not required to consider factors such as age, income, banking history, credit score, etc.
What are the Documents Required for Application
To apply for a Gold loan, it is very important to know the documents required. Below are the common documents that had to be provided by the borrower in order to apply for the loan;
- Proof of age
- Signature Proof
- PAN card or Form 60
- Post loan disbursement documents, if you have any.
- Identity proof
- Filled Application form
- Passport-sized photographs
- Address Proof
If you have all of the above documents, then you are ready to apply for a gold loan. You can also check your lender’s website for more information about the loan you want to collect.
How to Apply for a Gold Loan
Applying for a Gold loan is a very easy process and it does not require much at all. The first thing to do is to know your lender and determine the amount you want to borrow. Once you know that, you can follow the below guideline to apply.
- You can apply for a golf loan through offline or online channels. To apply online, visit the lender’s website and click on the loan product you want to apply for. And that would be a Gold loan. Next, you will have to click on ‘’Apply Now’’. If the option is available on the online website, Post this, you will need to enter the required information into the application form and submit it online.
- If there is no option to apply for the loan online, you will have to visit the nearest branch of your lender. Many lenders provide customers with the option of locating the nearest branch through their official website. Make sure to take a copy of the required document with you
- Once you submit the form, the lender will verify your application. If your application gets approved, you will get the loan amount
A gold loan is a very easy and quick way to get funds in the event of an emergency. Ensure you do lots of research and go for the application that is suitable for your repayment capacity and requirements.