Gold Loan In India

Gold Loan In India

Among all the news financial needs are also there for which somewhere or somehow everybody in life has encountered or will encounter with some situation where some amount of money will be required. The gold loan is one of the best options. As we all know that world is not only an element but also is treated as an auspicious ornament in the country of India. About 80% of the population is having household gold in ornament or other types of form. This is the reason that the gold loan is easily available and the gold loan is also suitable for most of the reasons.

There are many reasons for which the Gold Loan is one of the most preferred forms of loan and why are they undergone and some of the procedures which are linked with the gold loan are as follows -

Faster - Gold Loan is very easily available in most of the Institutions and the banks. As it has already been noticed that there is a tendency of using gold in the household form in Indian society. The reason is that most of the gold is used in the household form. So whenever there is any kind of emergency the gold kept with self in the house can be used at any point of time for availing a loan as gold is a part of jewel or jewel itself and can be said as jewel loan in most of the official ways. 

Less risky- most of the things are done in the online mode without the use of pen and paper. Previously one needs to fill up the application form which used to take near about 25 to 30 minutes and even get stuck waiting for any kind of officials for and then the valuation of the gold was done based on the original cost of the loan.

Low rate of interest- unlike in the personal loan or the educational loan rate of interest in the gold loan is very much lower as compared to the other one. The reason for skipping the rate is very low because there are fewer chances of loss due to the submission of the rating of the gold in the banks for taking the loan amount. If a particular person is getting the same rate of interest for rupees 50000 for 12% for the rate of interest of the personal loan. There will be a risk of loss of not repayment of the loan amount or any kind of accident in the future makes it an uncertain loan if it is availed from any other form of a loan. While on the other side of the same amount of loan can be at a very cheap rate of 6-7% per month.

Less involvement of CIBIL score- we see most of the types of loans always require any type of collateral or any kind of assets that are being with you or owned by you. As there is no risk because of the availability of the gold on the Collateral with the bank and the financial institution will always keep the security of a particular person and which loan will be profitable under the kind of loan. Even if a person is not having a good credit score then it is a very much hot big issue due to which one will not get a loan. As the gold is used as collateral for which the gold is provided at a very cheap rate for most of the common man of the society. For this reason, as gold is a part of the family, it is also treated as a Jewel Loan.

As it is one of the easiest forms of loan so it was advisable to go through and look after some of the eligibility and the criteria for getting the loan. Any Indian citizen who is above the years of age but below that of 75 years can legally avail of a gold loan. If any kind of Gold Loan Interest Rate is available jointly then the co-owner of the Co joint purchaser or borrower is required above the age of 70 years. 

Conclusion

One will have to keep in mind the number of documents that will be required for availing of a kind of gold loan. Documents such as passport driving license, voter ID, card Aadhar card pan card are accepted as a KYC document. The loan amount can be varied from the amount of 1,500 rupees and the gold for which the loan is getting availed should be valued and the maximum of 90% of the value of the gold will be taken as the disbursed loan amount.

Also read this: What Is The Reason To Choose The Gold Loan?