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GOLD LOAN

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Enquiry for Gold Loan

Gold Loan

A gold loan is pretty much like borrowing money using your gold as a backup. You know those gold necklaces, coins, or bangles you might have stashed away? Well, instead of just letting them sit there, you can take them to a bank or a non-banking financial company (NBFC) and get some cash in return. It’s like giving your gold to the lender, and they give you money based on how much your gold is worth. Once you pay back the loan with interest, you get your gold back safe and sound. It's super handy because it offers quick access to funds without selling your precious gold. And the best part? The application process usually doesn’t take forever, and you don’t need a perfect credit score to get approved. So, it’s really convenient if you’re in a pinch and need some financial help without the hassle of dealing with massive paperwork.

TYPES OF GOLD LOAN

1. Short-Term Gold Loan: Usually repaid within a few months to a year. Ideal for immediate financial needs or short-term liquidity.
2.Long-Term Gold Loan: Repaid over a period of several years. Suitable for larger financial requirements or extended financial needs.

FEATURES AND BENEFITS OF GOLD LOAN

1.Quick Processing: Gold loans are processed relatively quickly compared to unsecured loans due to the collateral involved.
2. Flexible Repayment Options: Various repayment schemes are available, including lump-sum repayment, monthly instalments, or interest-only payments with principal repayment at the end.
3.No Credit Check: Since the loan is secured by gold, credit history is often not a major factor in approval.
4. High Loan-to-Value Ratio: Lenders typically offer a loan amount that is a high percentage of the gold’s market value.
5. Retention of Ownership: Borrowers retain ownership of their gold while the loan is active.

PURPOSE OF GOLD LOAN

Gold Loan requirements for day to day working capital requirement of,
i) Business unit
ii) Petty trade
iii) Purchase of furniture & Fixtures etc.
Additionally, requirements for,
iv) Medical Expenses
v) Meeting Unforeseen Liabilities /investments/domestic expenses

ELIGIBILITY CRITERIA FOR AVAILING GOLD LOAN

1.Any individual owning gold ornaments/Jewellery/Coins, either singly or jointly.
2. All individuals engaged in Manufacturing/trading/ services sectors for working capital requirements, expansion of business etc. possessing gold coins, jewellery, or ornaments, either individually or in together.

APPLICATION PROCESS OF GOLD LOAN

1.Evaluate Your Gold: Assess the value of your gold jewellery or assets. The loan amount is usually based on the weight and purity of the gold.
2.Visit a Lender: Go to a bank, financial institution, or gold loan provider. Many lenders offer gold loans, including specialized gold loan companies.
3.Submit Documents: Provide necessary documents, which may include:
i) Proof of identity (Aadhaar card, passport, driver’s license)
ii) Proof of address (utility bill, rental agreement)
iii) Gold assets to be pledged
4.Loan Assessment: The lender assesses the gold’s purity, weight, and market value to determine the loan amount.
5.Receive the Loan: Once approved, the loan amount is disbursed quickly, often within a day.

  • FAQ
1. Describe a gold loan.

When you apply for a gold loan from a bank or NBFC, you can use your gold jewellery or decorations as security. Based on the market value of the gold, the loan amount is determined.

Anyone over eighteen who owns gold jewellery or ornaments is eligible to apply for a gold loan. Certain lenders could demand proof of address or income.

Lenders usually need:
Proof of identity (passport, PAN card, Aadhaar card, etc.)
Proof of address (utility bill, voter ID, Aadhaar card, etc.) Photographs the size of a passport

The purity of the gold and the Loan-to-Value (LTV) ratio—which, according to RBI regulations, is normally up to 75% of the gold's market value -determine how much is loaned.

Depending on the lender and loan size, interest rates typically range from 7% to 24% annually.

The typical length of a gold loan is three months to three years. Flexible repayment plans are offered by certain lenders.

The lender may sell your gold at auction to recoup the loan balance if you don't pay back the loan within the predetermined time frame. But before they do so, they typically remind people.

Yes, as gold loans are secured loans, they do not need a CIBIL score. Nonetheless, obtaining better interest rates could be facilitated by having a solid credit history.

Indeed, pledged gold is kept safe from theft and damage in insured vaults at banks and NBFCs.

Yes, the majority of lenders do not charge for early repayment; however, some might levy a nominal foreclosure fee.