Yellow metal ?Gold? is the most preferable metal by Indians. Globally India has the largest number of consumers purchasing gold. Indians’ love for gold ornaments is decade old, so people like wearing gold ornaments and purchasing them on special occasions or festivals. Sometimes if people don?t buy ornaments, they prefer purchasing gold coins or bars to keep it as an investment. Especially, in Indian households gold is kept as an asset to use during future emergencies.
?An emergency financial need is always unpredictable in anyone?s life. During such a situation arranging money on time becomes very difficult. To arrange required money the easiest option is to take a loan. But for taking loan also you need to decide wisely which loan option will be better for you. Because loan against property or personal loan take time for processing and approving it. Whereas, a gold loan is the one which does not require much legal formalities for approval. Let?s know more in detail how gold loans can be beneficial for financial emergencies.
What is a Gold loan?
A gold loan is a type of secured loan that is offered by banks and Non-banking financial companies against mortgaged gold. Many banks and non-banking financial companies are comfortable offering loans against gold at reasonable interest. If you take a gold loan there is no compulsion on how and where you will be using it. So, money acquired from gold loans can be used for personal as well as business purposes also.
How does Gold loan work?
Actually, the process of getting a gold loan is much easier and not very time consuming also. The basic requirement to apply for a gold loan is that you should have pure and real gold in any form such as; jewellery, coins or bars. You can pledge the required amount of gold in any one of the following forms to acquire a loan against gold. The lender will evaluate the purity and quality of gold, based on that loan amount is sanctioned. You will also need to submit some valid identity documents for verification purposes. After the verification, the loan amount will be sanctioned and transferred to your account.
Who can apply for a Gold loan?
For taking a gold loan there is no stringent eligibility criteria, you just need to fit in the requirements mentioned below.
- You must be an Indian resident. Minors ,NRIs, or corporations are not qualified for gold loan.
- You must provide necessary legal documents to the lender.
- You must provide income proof like salary slips, bank statements, ITR, etc.
Top benefits of gold loan to meet any financial requirement:
- Easy application: Through the lender’s website you can easily apply for a gold loan within a few minutes. Just sitting at home, you can fill the application form through phone or laptop and submit it in a single click.
- Credit score not mandatory: Gold loan has the best advantage that your credit history is not much important. Currently, if you have low credit history don?t need to worry about that.
- Minimum charges: Generally, a gold loan is opted by any class of people, whether the borrower is rich or poor he can apply for a gold loan. So, gold loans do not have high prepayment charges or processing fees.
- Quick disbursal: As gold loan processing does not require much legal formalities you can get the loan immediately. Once successful identity and gold verification is done the amount is disbursed in the bank account.
- Easy repayment: You can repay the loan monthly in small installments as per your convenience. Instead of taking on the burden of huge payments, paying in small amounts is easier and you will be debt free after the loan payment.
- No restriction on usage: Gold Loan can be used for personal or business needs or you can invest money wherever you want.
How can you apply for a Gold loan?
Previously people used to apply for gold loans through visiting banks or non-financial institutions, but now you can apply through online mode also. Companies like Augmont Goldtech Pvt Ltd are providing online gold loans.
Following are the steps to apply for loan through online mode:
- Choose a lender that is suitable for your requirements and apply online from their website.
- Once you fill the application form and submit required documents the lender will evaluate your gold. Either you need to visit the nearest branch or you can request for doorstep evaluation.
- Once all the formalities are done and the loan is approved you will receive the amount in your bank account.
Gold loans are a convenient option to take loans for shorter periods and for small expenses. But if you have huge fund requirements don?t go for a loan against the gold option. It is recommended to apply for loans in trusted institutions or banks only. Before taking the decision of applying for the loan understand all the terms and conditions of loan, processing fee, documents required, interest charge etc. Gold loan also has a drawback that if you don?t repay the loan on time, you can?t get gold back from the lender. Understand all the little details and make decisions accordingly.
