Most Indians are fond of gold jewelry, and they buy it during festivals or events. Gold is not only the pride of every Indian woman, but it can save a family from a sudden emergency related to regular revenues. Some top-ranking banks and several financing organizations deal with gold loans. These loans are provided to the borrowers against the amount of gold that they offer the lending entity as security. A loan against gold can also be called a gold mortgage loan.
In India, there are a lot of people who have come across an economic crisis with easy gold loan plans. Here, the details of the application process for a gold loan is given in more information:
Approaching for a Gold Loan
In the first step, you must approach a bank or an organization that deals with a gold loan. Once you talk with them, you will get an application form along with all the clauses and conditions. Try going through the provisions and clarify if you do not understand anything.
Only a few documents are verified by most of the organizations offering people with gold loans. The banks and other lending firms might accurately check the materials that support your identity. Financial documents are not needed in general cases to get a gold loan. So you can expect a quicker disbursal. Even the credit score is not checked by the money lending firm in case of a gold loan.
Collateral Submission and Disbursal
For a gold loan in India, you will need to keep only gold jewelry as collateral. Banks and private financial organizations refrain from keeping gold bars or coins as security. The value to the loan is decent, where you can get capital up to 75% of the net amount of gold you keep.
This is the only process that might take some time as the lending organization thoroughly tests the quantity of gold that you offer to them as a pledge. Your capital money will entirely depend upon the amount of gold that comes as a result of the test. Once the bank finalizes the amount that is deliverable to you, it is instantly transferred to your bank account.
Processing Fee for the Gold Loan
The processing fee of a gold loan might be variable among the lending entities. Some organizations provide gold loans without any processing fees, whereas some banks charge some money to process a gold loan. However, the amounts in such cases are just nominal.
So, this is how you can apply for a gold loan if you need some instant cash. All other types of loans can take some time to generate as the financial documents are cross-checked vitally. If you have all the necessary things ready with you, the same day, a gold loan might be accessible. It will take a few minutes to get the money.
If you are currently thinking of taking a loan, try to go for a gold loan if you have gold jewels with you. Gold loans are secured loans, and they come with lower interest rates compared to any other type of loan. The best for you will be to repay the loan amount in minimum time. If you fail to repay the gold loan within the deadline, the collateral will rightly get forfeited.
Be it in the form of jewelry or in the form of some precious possession gold is always considered to carry a prestigious value. Similarly, gold is used as a source for fast income generating tool. Make use of your gold as a resource to avail loans. Take out your gold from the cupboards and keep it inside the bank lockers.
There are innumerable benefits in terms of the gold loan that can’t be overlooked. The major bonus is that gold investments can be taken irrespective of the value of credit score. You can take a gold loan and slightly improve your score by regular payments. Also, with the advent of digitalization, the entire process of loan taking is straightforward and can be conducted in a complete hassle-free manner.
Don’t hold yourself. Avail the golden opportunity of applying a gold loan.