Purposes of gold loan
Here is the list of milestone points that describe the purposes of the gold loan-
- Funding for education- Several institutes provide student loans for college admission, hostel fee, books, covering tuition, and other related expenses. Applying for a gold loan can be much beneficial rather than an education loan because it does not cover the tuition fees, or travel expenses, etc. check the eligibility of a gold loan and check the gold loan process of the lender and compare the interest rate with other banks before deciding.
- Business startup- a gold loan is an ideal option for those who need an immediate business loan. To start a business is an excellent idea but may not have liquid cash to set it up. This is often happening in the case of women entrepreneurs and the gold loan can help them in finance for any business (small/ large).
- Loan for automobiles- Gold loans also can be used for purchasing automobiles. In-car loans, submit the documents proof, and income proof from the seller while in the gold loan, there is no requirement of documentation. After the submission of gold to the bank, the gold loan process begins.
- Medical emergencies- If you have an immediate medical emergency then you can go for a gold loan because it only requires gold. According to the purity of the gold, then the gold loan process started by the bank and they provide loans to its customers.
Features of Gold Loan
- Purpose- you'll avail of a gold loan to finance many wants, such as for medical emergencies, academic purposes, occurring a vacation, and so on.
- Security- The gold that has been pledged with the bank or the financial establishment acts because the security or collateral against that loan amount is provided.
- Tenure options- The tenure options will vary from a minimum of three months to a maximum of 36 months.
- Fees- the other fees that may apply on a gold loan are–processing fees, the penalty for non-payment of interest/ late payment charges, valuation fees, etc.
- Rebates- Several financial institutes provide the option of discount on the prevailing rate of interest on the loan against gold if the receiver repays the interest often. This rebate will be 1 chronicle - 2 off on the initial rate of interest.
Here are some points that describe the things to remember before taking a Bank of India gold loan or any gold loan.
- Gold loan processing fee- Several banks charge a processing fee of Rs. 1,000 to up to 2% while some banks offer lower processing fees. To get the lowest fee, a comparison of gold loan offers and cashback applying online. You can also go to the Bank of India as it provides a minimal processing fee.
- Gold loan Prepayment and foreclosure- Foreclosure is a term that means the repayment of the loan before completion of tenure. In case you want to repay the whole amount before time, it is called foreclosure. When you repay the loan partially is called par prepayment. The charges are nil or even up to1%, depending on the financial institutes. So check deliberately if the low rate of interest of gold you are catching comes with high prepayment. Few loans come with a lock-in-periods and can’t be repaid before time.
Advantages of Bank of India gold loan
- Minimum documentation needed compared of alternative services.
- A Gold loan application on-line may be done through completely different banks by visiting the official website solely.
- A consumer will select the tenure of the loan.
- The service system is straightforward.
- The processing charges of a gold loan are negligible.
- Banks don't consider the CIBIL score in a Gold loan applied online.
- Banks offer safety to the ornaments/gold with no charges.
- Bank of India gold loan charges up to 0.50% to the recipient on the principal quantity.
No comments:
Post a Comment