Consider using your gold as collateral to get the money you need if you need it right away. Most non-banking financial institutions offer gold loans. The lender calculates the loan amount based on the gold’s current market value. The loan amount depends on the gold loan per gram rate today. You can rapidly get cash with the aid of such a loan. You must examine the numerous attributes and advantages of gold loans and the loan application procedure. Since they are secured, lenders charge cheaper interest rates on gold loans than on unsecured ones. For gold loans, lenders do not need to know your credit ratings or your monthly income. The gold offered as collateral is used to calculate the loan value. Lenders protect the gold you’ve pledged by keeping it in secure vaults. They give it back to you once the loan is paid back.
There are several ways to solve money issues, and many individuals choose gold loans. Gold loans are simple and practical compared to other borrowing options. An increasing number of people are starting to take gold loans. In simple words, a gold loan is a secured loan obtained from financial institutions through the pledge of gold items like ornaments, jewellery, etc. The loan will be approved based on the gold quantity, quality, and gold loan per gram rate today. A person must meet the eligibility requirements to receive a gold loan.
- The minimum age requirement for all borrowers is 21 years.
- The borrower must be at least 60 years old when the loan matures.
- Salary earners, independent contractors, professionals, business owners, and others receive the gold loan.
Interest rates and charges:
- Customized interest rate- Starts from 9.5%
- Gold valuation- Up to 75% of the pledged gold
- Processing fee- 0.1%
- Foreclosure charges- No charges
- Tenure- 12 months to 84 months
Benefits of gold loan:
- Lower interest rate- The loan amount depends on the gold loan per gram rate today. The main benefit of a loan against gold is that it has a lower interest rate than personal loans and other unsecured loans. Interest rates for gold loans begin at 9.5%. Personal loans may have interest rates that are higher than 30%.
- Minimal processing fee- For high-karat gold, lenders levy a processing cost of 0.1%, which is incredibly small. A gold loan scheme has substantially cheaper processing fees in comparison to personal loans.
- No credit history- There is no credit history requirement for gold loans. In contrast to unsecured loans, it is one of the best benefits of gold loans. Only people with solid credit histories are offered unsecured loans. In the instance of a gold loan, the gold that has been pledged serves as security for the loan.
- High valuation- Loans secured by gold offer a high valuation of the collateral. The loan amount provided to the borrower is based on the jewel loan per gram rate and the LTV. Lenders permit a 75% LTV loan against gold jewellery and other items.
Easy documentation- An uncomplicated documentation process is involved with loans secured by gold. There is very little documentation. You can apply for a gold loan with identity, photo, and address evidence.
