Gold is often bought as an investment, and once in a new moon gets invested in the right way. It only becomes a showpiece of astonishment. Often, we don’t even end up wearing it because of the risks of wearing your gold outside on the streets. Hence gold becomes a dead investment and sits in the locker at home or in the bank to pay its rent.
Remember selling gold is not the only option of investing it and can be invested in a better way where you don’t have to sell it, and it will be returned to you in the same state as you submitted it to the bank. Remember, there are laws and insurances in power to protect your gold. When you take a gold loan from authentic lenders, you don’t need to worry about fraudulent behaviours. Visit the bank’s website to do thorough research on the bank’s guidelines to ensure you are submitting the right documents needed.
While availing of gold loans for older individuals check the bank’s policies on age. You can only apply for a loan if a bank is providing loans for people of that age. Banks also do not provide loans to individuals younger than 21, which is also something to keep in mind while applying for a loan.
Bank does reserve the right to sell your gold if you cannot repay the amount in the tenure period. Hence it is a risk and needs to be taken with financial calculations of whether you will be able to pay the EMIs in the period fixed by the bank. There is a penal interest rate generally of 2% applicable on payments not done on time.
Try to avoid the jewellery which has precious stones in them such as diamonds or pearls as the gold loan is only valued for gold and the valuation process can become tedious if you have diamonds or pearls as they need to be removed and reattached back which also not a good thing for the authenticity of those jewels. If you want to take insurance on your gold loan, then make sure to submit those documents along with the normal gold loan documents.
Gold loan is a secured form of a loan, and hence it has lower interest rates and longer payback periods. Some banks also don’t ask for proof of income when you keep gold as collateral. Gold loans are one of the only assets where you can avail loans of up to 90% of its valuation, which is quite a lot compared to car loans or home loans. This norm is brought into practice by RBI, and hence it is a trustworthy way for customers to avail of loans.
If proof of income is required, try to apply for a bank loan where you have your salary account. Banks have schemes for people who have their salary accounts with them as banks know that you have monthly fixed income, and you will be able to pay back the loan borrowed. Make sure to take a loan only when you need it as it is a risk to your assets. Make sure your gold is at least 18-carat as less than that is not acceptable for providing loans.
Gold loan eligibility criteria are easier to meet than a personal loan as maintaining a credit score can be a headache, and in India, a ton of people don’t even use credit cards,. Still, everyone does have at least some amount of investments in gold loans due to cultural traditions.
Gold loan is a secure and fast way of securing loans when in a financial emergency. Gold loans have fundamental criteria such as the gold article and basic KYC information such as Adhar card and pan card. Address proof of the clients such as ration card or electricity bill or lease signed for rentals.
No comments:
Post a Comment