A gold loan stands out as one of the simplest and speediest means to obtain funds for personal or business needs. It operates as a secured loan, wherein the borrower pledges their gold ornaments as collateral against the desired funds.
Typically, lenders approve a loan amount based on a certain percentage of the gold’s value. Similar to other loans, repayment can be facilitated through monthly installments, and upon full repayment, the pledged gold articles are returned.
It’s crucial to note that only gold ornaments or jewelry are factored into the value calculations, while items such as gold coins, bracelets, necklaces, pendants, and earrings are excluded.
Moreover, a gold loan serves as a comprehensive solution for various financial requirements, including medical emergencies, agricultural needs, educational expenses, and more. Boasting numerous features and benefits, it allows for significant disbursal amounts, with borrowers able to draw up to 5 ores. Notably, gold loans often come with lower interest rates, making them ideal for addressing diverse financial needs.
Numerous lenders offer gold loans, necessitating borrowers to explore and compare different options to secure the most favorable interest rates. This approach enhances the likelihood of obtaining optimal terms for your borrowing needs.
Features & Benefits of a Gold loan
Just like I have mentioned above, different lenders offer gold loans and they have different features. However, below are the common features offered by a Gold loan;
- The loan disbursal time is minimal
- There is no requirement of an excellent good credit history for application as it is a secured loan
- It is an easy and quick way to meet one’s financial needs as opposed to other loans
- The tenure options can range from a minimum of three months to a maximum of forty-eight months.
- The gold pledge by a financial institution or the bank acts as the collateral or security against which the loan amount is provided.
- Faster and affordable than personal loans
- Attractive interest rates
- Complete safety of jewelry
- Amazing interest rates
- Simple and easy documentation
- No EMIs. Repayment at the end of loan tenure
To enjoy all of these benefits, you can apply for a Gold loan from any lender of your choice. Just make sure you compare good rates and choose the best one.
Who can apply for a gold loan?
Anybody above the age of 18 years old can apply for a gold loan. As long as the individual is the actual owner of the ornament they present they are free to apply. The Banks are not required to consider factors such as age, income, banking history, credit score, etc.
What are the Documents Required for Application
To apply for a Gold loan, it is very important to know the documents required. Below are the common documents that had to be provided by the borrower in order to apply for the loan;
- Proof of age
- Signature Proof
- PAN card or Form 60
- Post loan disbursement documents, if you have any.
- Identity proof
- Filled Application form
- Passport-sized photographs
- Address Proof
If you have all of the above documents, then you are ready to apply for a gold loan. You can also check your lender’s website for more information about the loan you want to collect.
How to Apply for a Gold Loan
Applying for a Gold loan is a very easy process and it does not require much at all. The first thing to do is to know your lender and determine the amount you want to borrow. Once you know that, you can follow the below guideline to apply.
- You can apply for a golf loan through offline or online channels. To apply online, visit the lender’s website and click on the loan product you want to apply for. And that would be a Gold loan. Next, you will have to click on ‘’Apply Now’’. If the option is available on the online website, Post this, you will need to enter the required information into the application form and submit it online.
- If there is no option to apply for the loan online, you will have to visit the nearest branch of your lender. Many lenders provide customers with the option of locating the nearest branch through their official website. Make sure to take a copy of the required document with you
- Once you submit the form, the lender will verify your application. If your application gets approved, you will get the loan amount
A gold loan is a very easy and quick way to get funds in the event of an emergency. Ensure you do lots of research and go for the application that is suitable for your repayment capacity and requirements.
