In the recent pandemic, situation money has become more essential than ever. Especially middle-class people found this time difficult to survive. To cope up with their devastating financial problems, people prefer to go for loans. They go for financial help from various lenders. It also becomes necessary after some time to replay such a loan taken. That’s where the gold loan comes into play.
For people who want to repay their existing debt but are lacking funds, a gold loan is the best option. Gold loan is very easily available. It just requires basic documentation and the loan amount will be sanctioned in a matter so some days. And then those funds so sanctioned can be used for other debt repayments.
Applying for a gold loan is very easy. The borrower has to pledge their gold to the lender who will then perform a quality inspection on such gold so pledged and based on that quality around 80% of the value of gold is generally assigned as the sanctioned amount for the Gold loan.
To apply for a Gold loan, firstly there should be a piece of good knowledge about gold loan eligibility
which is explained below-
- The applicant has to be 18 years or above to avail of the gold loan
- The applicant mandatorily has to be a resident of India
- The gold must be in the ownership and possession of the person applying for the gold loan
- Only the Gold from 18 carats to 24 carats can be pledged
A gold loan is a secured form of a loan. Gold loan forms part of the portfolio of almost all the big financial institutions. Major banks offering gold loans and their respective interest rates are given below:
HDFC Bank Gold loan (9.90%)
ICICI Bank Gold loan (10.50%)
AXIS Bank Gold loan (10.50%)
SBI Gold loan (9.50%)
Kotak Gold loan (11%)
Yes Bank gold loan (10.50%)
PNB Gold loan (11%)
IIFL Gold loan (12%)
All of these banks and financial institutions are leaders in the Gold loan market. Each has its merit. While the rate of interest charged by SBI is the lowest, HDFC bank provides better services than the market standard. The big advantage of going with Axis Bank gold loan is a minimal sanction time.
The biggest advantage of going with a gold loan is that the banks are very less concerned about the type of employment of a person. An individual with Job background, student, housewife anyone can apply for a gold loan. It’s just that the person applying for the Gold loan has to have Gold with them. And by pledging that Gold they can get money to repay their debts.
Repaying a Gold loan has also been made very easy. Application for a Gold loan can be made online and offline both but a person has to visit the branch of the bank to which the loan has been applied to. This is to deposit the gold with the bank. Rest all the procedures can be done online. This has given flexibility to banks as well as customers and at the same time, it saves a lot of time and energy.
Gold is also referred to as yellow metal who is considered extremely precious since medieval times. If your gold is just lying in your locker, its potential is not used. Gold can be used to avail of a Gold loan in a simple.
Conclusion
The gold loan has become significantly popular as it is widely used by people all around the globe to repay their existing debts. It is a very safe and secure way of getting yourself free of old debts and heavy interests in such debts. The gold loan can be used for debt repayment nowadays in a way that has been made extremely easy for banks and especially for customers. With the help of this simple technique to use the Gold loan to repay debts, Banks get their money back and the customer gets to pay his dues back on time without any penalty or added interest. It creates a win situation for all.
Also Read:- Creating a Profile to Opt for a Gold Loan
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