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Beginners Guide For Availing Gold Loan Online

by janeausten
gold loan online

Obtaining loans in India by pledging gold is typical practice. In order to have access to cash quickly, many people pledge their gold jewellery with NBFCs or banks. Today, securing a loan against gold couldn’t be simpler. Simple online instructions lead to a successful application. Nonetheless, before committing to any kind of loan, it’s important to get all of the facts and gold loan Features. Therefore, some finer points of the gold loan are dissected here so that you can make an educated decision the next time you go loan hunting.

To whom are gold loans available?

The following conditions must be met in order to obtain a gold loan:

  • Employment Type: Professional, Businessperson, Farmer, or Trader (on a W-2 or as an independent contractor).
  • A borrower’s age must be between 21 and 60 years old in order to qualify for a gold loan.

How can I apply for a gold loan, and what do I need to provide?

Gold loans have few paperwork requirements in comparison to other types of loans. A collection of document required for gold loan, including those listed below, would be required for such loans:

Acceptable Forms of ID (Any of the Following):

  • Card with the Personal Identification Number
  • Identification document (Aadhaar)

Indicators of a current address (any of the following):

  • An Individual Identification Number or Aadhaar Card
  • Statement for Postpaid Service, Landline Service, Water Service, or Electric Service
  • The Change of Address as Shown on My Bank Statement and My Bank Passbook
  • Permission to Drive
  • Voter Identification
  • Passport
  • Lease Contract (Including Current Electric Bill from Landlord)
  • The Most Recent Receipt for Gas Bonds
  • Statement of Credit Card Account

For the purpose of transferring the remaining balance on a gold loan, the following paperwork is required:

  • Loan collateral pledge card (It’s a form that’s filled out by the consumer when they do a balance transfer. The loan application number, loan amount, lock-in duration, and loan amount are all listed.
  • A single voided check “(By Any Measurement)”.

How much gold and what kind do you need to pledge?

Neither banks nor other lending organizations will take gold in any form other than jewelry. Gold in any other form, such as coins, bars, biscuits, or utensils, is not accepted. Keep in mind that the gold’s purity determines both its value and the size of any loan you might qualify for. Gold should be between 18 and 22 karats or higher in purity. Only the gold content of the item will be evaluated for appraisal, not the value of any gems or stones set inside the item.

To know more about gold loan Features, keep reading.

When taking out a loan to purchase gold, what interest rate can I expect to pay?

When your gold is used as collateral for a loan, the interest rate you pay will be lower than with other types of loans. Interest rates for various loan amounts are detailed below.

The following is the interest rate that will be applied if monthly payments are selected:

Amount Borrowed   Annual Percentage Rate

20k to 25k                 1.65% monthly

25k-5cr                      1.33 % monthly

And 5 Lacs Per Month Over 0.89%.

How long do gold loans typically last for?

Gold loans have a 6-month term and are renewable for another 6-month term at no additional cost. Due to the short loan terms associated with gold loans, borrowers should be confident in their ability to return their debt on schedule. If you don’t pay back the gold you pledged before the due date, you risk having it taken away.

How much of a loan can I expect to receive?

After determining the value of your gold based on its weight and purity, lenders will offer you a loan. The LTV, or “Loan to Value,” Calculation is completed. Loans from the majority of these institutions can go up to 75%-77% of the value of the gold that has been pledged as collateral. Further, RBI has mandated that all financial institutions and gold loan NBFCs lend at a 75% loan-to-value (LTV) ratio. Your maximum loan amount cannot exceed 75% of your gold’s value, if your gold is worth Rs 1 lakh.

Simply put, getting a gold loan can save your life in a number of different scenarios. Gold loans have several advantages over other loan options, including quick funding, low paperwork, and a simple application process. However, before committing to a gold loan, it is wise to do extensive study. Now that you know all about the gold loan Features, apply for a gold loan today!

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