Highlights
- What is the procedure for a gold loan?
- What are the merits of gold loans?
- What are the demerits of gold loans?
Procedure for gold loan
The first thing that you need to know about the gold loan is the application procedure, which is mainly divided into four parts- gold submission, evaluation, documentation process, authentication, and local distribution.
- Gold submission: As you know by now that in order to get the gold loan, you will need to submit your gold ornaments or coins minted by the bank to the lender as security or collateral.
- Gold evaluation: In this evaluation part .when you submit the gold, the lender calculates the overall value of gold according to the gold loan per gram.
- Documentation process: While applying for a gold loan, you will need to submit a definite set of documents along with your application form
- Authentication and loan disbursal: The bank will check all the details submitted by you in the authentication process.
What are the merits of a gold loan?
- Lower interest rate: Everybody wants lower rates on their loan facilities. a gold loan can be the most suitable option for you as this secured loan
- A higher loan amount: A gold loan helps you get the maximum loan amount against the pledged gold ornaments. Lenders usually decide the loan amount based on the loan-to-value ratio.
- Flexibility in repayment: There are mainly four repayment methods that you can see below:
EMI method
- Interest payments at regular intervals
- Upfront interest payments
- Bullet repayment
- Faster processing: If you are looking to get funds as soon as possible then a gold loan can be the best option for you as you can get the loan amount at a much faster rate as compared to other types of loans.
What are the demerits of a gold loan?
- You can lose your gold assets: incase you don't pay the amount of the loan
- Impact on the civil score
- No planning through a gold loan EMI calculator can cause high debt.
Also read:- Gold Advance as your Rescuer
No comments:
Post a Comment