Need cash urgently? get a gold loan

If you need cash due to some requirements, in that case, a gold loan can be beneficial to you. Because in the gold loan the amount is provided to you on the security of gold and as per the gram quantity of the gold the amount is measured and provided. But the loan amount provided is lower than the gold gram as collateral security.  

If you need cash

What would you do if you have a very urgent need for money? Either you borrow from any friends or maybe any family member or you take any other loan. To take another loan, you either need to have an existing relationship with some bank or a very high credit score. If not, you may be charged a very high rate of interest. There is also another option that is very quick and very easy and will not put undue strain on your finances. You can take out a very easy gold loan. Most of us have gold in many forms or the other. This could be gold jewelry or some coins. Mostly, we keep it under lock and key at home, or in safe custody in any bank locker. But if you need funds in a very emergency, you can also avail of a gold loan very easily. 

This gold loan may work out very cheaper than any other type of loan since this is a very secured loan. You are also pledging your gold as collateral with some bank and borrowing money against it.

You have to also visit the bank branch (most of the lenders offer home visits) along with your gold, KYC documents, and some kind of residential proof. The bank always evaluates the value of the gold and always offers a very certain amount as a gold loan against it. The amount is then transferred to your account easily, and the gold is kept with the bank in very safe custody. 

Gold loan per gram rate

Gold loan per gram gives you an estimate of the amount of this loan you can easily get against your gold jewelry. You will get a gold loan based on the purity and this gold price of your jewelry adjusted for this kind of loan to value ratio. As per the very latest gold prices, their gold price is very low if any person is comparing to any other type of loan this loan is very secured and very safe.

IDBI Bank Gold Loan

This IDBI Bank Gold loan always offers an Agricultural Finance Gold Loan which, as the name suggests, is a loan against this gold for many purposes of meeting very immediate agricultural or allied requirements. The gold loan amount easily availed against the gold pledged by the borrower can be used for meeting social obligations and many types of medical needs. This gold loan is always offered to traders, very small businesses, and distributors to finance their business processes.

Also read this: Few important factors that affect gold prices

 

Gold Loans: economic and within reach

Before we step into a puddle of gold loans, let’s dive into an ocean of loans. There are different loans; Gold, car, house, personal, etc. Technically, expenses from credit cards are also a type of loan, considering you’ve to give the bank money. Looking at the current economic situation, a smooth cash flow isn’t happening anytime soon, so you might want to pause your credit card expenses until you have ancestral property. You won’t even need a gold loan! Anyway, moving on… 

If you’ve been following our articles and blogs, you probably know by now that gold loans are calculated on various factors. The most important of the gold being purity and price. The price of gold is a relatively high current, and the purity is nothing to worry about, considering Indians don’t like a lot of adulteration in gold (at least!)Now, according to the RBI, you can get 75-90% of LTV against your gold.  The more gold object you have, the better it is for you to get the right loan amount against it. The gold loan interest rate is hence low. This loan could be the fourth leg in your legged dinner table. 

Coming back to other loans, it has always been difficult to avail of other types of loans. With an employment crunch, it is more difficult now. In any such situation, it would be best to play your ace that is gold. It belongs to you! It isn’t going anywhere, and it gives a good fortune against it. Gold loans don’t need many documents and background checks, all you need is the physical feel of the gold, and you’re good to go. With low interests that can be paid off quickly, one gets the best of both worlds. In some banks, the loan taker can give more amount, which can later be rounded off in the next month. Taking a little left from the technicalities, gold ornaments are only worn to show off, with lesser events due to this pandemic, and you don’t have to show off to anyone. So, your gold can be safe with the bank and help you get some extra money to make your ends meet. 

Just for a quick example, let’s consider the interest rates of the IDBI bank. The IDBI bank gold loan scheme has a gold loan interest rate of 7.0%. The processing fee is just 1% on the principal amount, which is cheaper than any other loan. If you compare it in Layman’s term, one dinner at a 3/4-star hotel can pay off a month’s interest when it comes to gold loans; that’s how cheap it is! Now that the hotels are shut, and Chicken Tandoori is nothing but a dream, you could pledge off your gold and put that money in the interest of the bank and your financial position! 

Also read:- Gold loan interest rate and EMI