Just as a loan can be taken in exchange for Fixed Deposit, Property, Shares & Security , in the same way it can be taken in exchange for Gold . A Gold Loan is a type of Secure Loan , so to take such a loan Borrower has to mortgage some Goled Jewelery near the Bank or Non-Banking Financial Corporations (NBFCs) as a security. The securities can be in the form of Jewelery and Gold Coins ( Jewelery and Gold Coins ) . Once the loan is awarded, Borrower returns his ornaments only when they pay the loan Amount with interest (With Interest).Pay Lender in full.
Gold Loan – Why
- Under the Gold Loan option, a minimum interest charge is made in exchange for a loan from Borrower, as it is a Secure Loan category, so Borrower is required to pledge gold as security in lieu of the loan.
- The duration of the Gold Loan can be anywhere from a few days to 5 years and if the Lender wishes, he can provide the loan for a longer period.
- If the Borrower prepares the Gold Loans, most Lenders in this case do not penalty charge any of the Borrower.
- To take a Gold Loan Borrower has to submit at least Document and even PAN Card is not mandatory.
Gold Loan – Features
- If Borrower needs instant money, then Gold Loan is a better option as Borrower neither has to provide any kind of Income Certificate nor any kind of Credit History to take such a loan . That is, this loan does not depend on Borrower’s income and credit history .
- Gold loan is a category of Secure Loan, so its processing time is very less, interest rate is also less than Borrower and Gold loan is provided for the duration from Short Term to Medium Term .
- Borrower has the option to pay only the Interest Component ie if Borrower can pay only the interest if desired and Principal Amount can be paid a lump sum at the end of the term of the loan .
- On taking a Gold Loan, the paperwork is very less. Only Personal ID and Address Proof are required as paperwork .
Gold Loan – Required Eligibility Criteria
Borrower does not need to Satisfy any Specific Eligibility Criteria to take a Gold Loan, for this it is only necessary to Fulfill the following Eligibility Criteria.
- Borrower must be over 18 years of age .
- Borrower by Submit going to be Gold, Borrower must own that all pledged Documents Borrower should be called.
Gold Loan – Interest Rate
Most Gold Loan directly to Banks and NBFCs very low Asked Loan granted in return, Gold Interest Rate to Charge. Normally, Lender charges Interest Charge up to 3% -5% of Base Rate while providing Gold Loan . Thus, the interest rate of Gold Loan for 10% Base Rate will be 13% -15% per annum.
Gold Loan – Required Documents
In order to take a loan other than a Gold Loan, it is necessary to provide several types of documents to Borrower, as there Documentation plays a major role in whether the loan is approved or not, but it is not in Gold Loan, Rather, the applicant applying for this has to provide only the basic KYC details , which is as follows
- Two Passport Size Photo.
- Copy of any document in Passport, Aadhar Card, Ration Card or Driving License as Identity Proof .
- Address Proof as Telephone Bill, Electricity Bill or any other Utility Bill of
Important things related to Gold Loan.
- The amount of loan that Borrower will receive in exchange for their pledged gold depends entirely on the value of the gold that Borrower deposits as a security.
- Before the gold is taken over by banks and NBFCs, they check the value and purity of the gold and only then the loan is provided.
- After the lender checks the purity of the gold and determines the current market value of the gold, 75% of the value of that gold is approved as a loan.
- Although the Gold Jewelry All Banks and NBFCs accept as security, but Bars are not accepted by specific types of Gold Coins only Banks is accepted by.
- If the gold pledged by the applicant for taking the Gold Loan, if it also contains precious stones, then 75% loan of the same Gold Value is approved as it contains Gold.
- The interest rate of a gold loan also varies depending on how long the loan is being taken and how much Amount the loan is to be taken.
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