A financial market means a market that caters to the needs of those who need finance such as banks and other financial institutions. Gold loan is one of the significant components of such a market.
Gold is a commodity, a very precious metal that has been used in the financial market for a long period now. Gold can get you the finances very quickly. Many years ago gold was exchanged as currency. With the advent of currency notes, the value of gold has not declined, on the other hand, it surged. Gold has not only been internationally acclaimed as a precious metal but its worth in the money market is also well known.
That is why we can see all the major finance companies have a significant service- “Gold loan” embedded in their portfolio. Gold loans are offered by almost every major and minor bank and financial institution nowadays.
Gold loan is a secured and safe way of getting finance. In a gold loan, the borrower pledges the gold with the lender. The lender then whether by in-house evaluation team or through any other external sources gets the quality of the gold checked. The quality of gold matters a lot in this industry. Better quality will get you a better price for your gold. Simply speaking, 18 carats gold will fetch you a low price while a 22-carat gold will be of more value.
Depending on the valuation of the quality of the gold as well as its weight, the amount assigned is generally 80% of the value of the gold so pledged.
The amount gets sanctioned within minutes after verification and within hours it gets deposited to the bank account of the customer.
A person doesn't need to have a bank account with the same bank from which they are taking the gold loan services. However, a customer gets certain advantages and loyalty offers if they do open a bank account and take the gold loan services.
The following criteria are needed to be fulfilled by a person applying for a gold loan-
The customer so applying for a gold loan has to be a normal resident of India
The customer has to have completed 18 years of age
There must be a self-owned house property registered in the name of the person applying for a gold loan
Gold ranging from 18 carats to 22 carats can only be pledged as per RBI guidelines.
Availing a gold loan has been made very simple and quick. All the services of banks have been online which not only saves the time and energy of the customers but also saves a huge cost on the part of banks. A customer can however apply for a gold loan both online and offline. If applied online, then also a customer has to visit the bank branch at least once to deposit the gold therein.
Various other documents required to be submitted while availing of the gold loan are-
Identity proof such as Aadhaar Card/ Voters ID/ Pan Card/ license
Residence proof such as Utility bills of the house/ Aadhaar Card/ Pan Card/ Voters ID
After submitting such documents the application of the customer goes under careful review by the bank and if all the eligibility criteria and conditions are fulfilled the loan amount gets sanctioned in the name of the customer who applied for such a gold loan.
Bank of Baroda along with some major banks are known to provide the best service to their customers such as less time in dispatching of their amount, 24X7 helpline, and many other essential services to their customers. With a Bank of Baroda gold Loan, a customer can freely on their fingertips when to apply for a gold loan. They can also see their gold loan status live via the portal of the bank.
The advancement of digitization has given liberty to both the banks and the customers to focus their energies on the most significant tasks. The online mode of availing of a gold loan saves a lot of time, cost, and energy on the part of both banks and customers.
Conclusion
The gold loan process has been made easier than ever. Earlier a gold loan was a fortune to get but nowadays it is easily available to anyone in the quickest manner possible. It has been simplified right from application to the disbursement in the account of the customer.
Also Read This-A gold loan used to overcome emergency or difficult situations
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