To make your understanding easier and to simplify, let us go ahead by breaking down this article into questions and answers type format,
First, What is meant by a Gold loan?
Well, a gold loan is a loan that an individual takes against his or her gold. This is simply nothing but, when a candidate or customer is in a position for urgent financial need or wants to have a build-up and stabilize his or her money stability, he can apply for loans. Now, as there are important loans like car loans, property loans, personal loans, etc, a gold loan is also one among them. For a candidate or the borrower to be a holder of a gold loan, she or he should look at points where they have consumed sufficient amounts of gold ornaments, which they might offer the financial institutions or the bank lender. And that’s when the bank lenders or the financial institutions offer them the loan in return for their gold ornaments.
Does the gold loan have any pros?
Of course, it has several advantages or benefits starting from securing and safety and ranging up to long tenure periods. To begin with, it is the most secured type of loan in nature, and hence the security and safety offered to the candidates is also on a very high range, that is nothing but, the gold when offered in the institutions, is also looked upon and kept safe in a vault safe object and locked. The next thing to be noted is that the gold loans can be given to the candidates or the customers within just minutes of time or a maximum of 1 hour. Hence, gold loan is the simplest and is known for its less processing duration.
The fast processing duration is all possible because a gold loan suggests and expects very minimal documents from its candidates or borrowers. And an added advantage is that candidates or the borrower do not have to take any strain on submitting their income documents at the time of applying for a gold loan, so with this, it is also evident that even an unemployed individual is also equally eligible for the gold loan to be given. But the minimum documents involved, the proof of identity which is nothing but any one of the candidate's government's ID proofs, such as Aadhar Card, passport, or even a PAN Card is acceptable. Last but not the least, gold loans are the most transparent ones when compared to any kind of loan, as this does not run past any kind of hidden fees.
Is our gold loan the same in every bank?
Well, it is not. This is because gold loans come along with many properties subjected to them, which are gold loan rate of interest, gold loan tenure duration, gold loan payment options, gold loan per gram cost, etc, hence they are not similar in every bank and may change in terms and conditions of the above terms that we have mentioned. For example, let us take a certain bank and see how it works, HDFC gold loan bank provides the gold loan at a rate of interest starting at 9.90% per annum on a general basis. And it assures that the loan disbursement process is done just within 40 mins. And looking at the tenure duration of HDFC institution, it ranges from 3 months to 1 year, and 6 months duration can also be applied by the candidates. These are some requirements of this particular bank and the point to be taken into consideration is that all these may differ in any other institution and may not exactly be similar. Hence it is always suggested to opt a bank or the lenders accordingly.
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