Gold Loan For Women

India is the second-largest consumer of gold in the world due to its culture which places a lot of emphasis on gold coins, gold bars, gold jewellery & ornaments, etc. Needless to say, women are amongst the biggest consumers of gold. A gold loan is a quickest and simplest way to turn your gold into cash in a short span of time. Gold loan is hence ideal for a situation when money is required urgently for emergencies, business purposes or any contingent expenses. 

For obtaining a gold loan, one does not require a credit score or any income proof which many Indian women do not have. The only requisite documents required for obtaining a gold loan are an Aadhaar card, PAN Card, Voter ID Card (or simply KYC documents) and address proof. As soon as the gold is given for evaluation to the bank, the loan amount is determined along with interest rates. The lowest interest rates are offered by public sector banks while the highest interest rates are offered by Non-Banking Finance Companies (NBFCs). Ideally, a bank will only provide gold loans for a maximum loan to value ratio of 75% of the current market price of the gold. 

Mostly, gold loans are offered only for a period of one year. However, many banks extend this tenure, whereas a few banks like Manappuram Gold Loan allows you a tenure of three years or more. Nonetheless, the tenure depends on the repayment option and the type of loan scheme preferred by the borrower.

In a gold loan, the repayment option is very flexible. The borrower can pay the amount as a lump sum on maturity or can re-extend the tenure by re-pledging the gold at the current Loan To Value (LTV) Ratio. Some banks and NBFCs also allow early repayment and partial payments for those who can pay, without any penalties. The flexibility to repay loans and interest is another added benefit. There is also no limit on how many times the same gold can be re-pledged for a new loan. As a result, the borrower has the opportunity to use the same gold to obtain new loans as many times as possible. Hence in this way, a gold loan also acts as an overdraft against the pledged gold. All of this is beneficial for women since the burden of monthly payment of instalments is avoided. This helps in avoiding short-term money problems or crunches, especially in a business.

However, the value of the gold given as collateral is subject to a lot of charges as well as changes. In case the gold prices fall, the bank may ask for more gold in lieu of the gold loan provided. If the borrower/defaulter is unable to repay or provide more gold as collateral, the bank has the option to charge a penalty or to sell off the collateral gold in form of payments.

The maximum Loan to Gold Value on the lowest interest rates is currently offered under the AtmaNirbhar Mahila Gold Loan scheme of the Bank. This scheme was recently launched by Vidya Balan in order to make women of India more reliant. It aims to help those women of India who currently rely on local money lenders for their financial needs. Such money lenders often offer a very high interest rate along with a comparatively low Loan to Gold value to exploit women. 

Hence, a gold loan rate is one of the most suitable and favourable ways for women to take loans against their gold ornaments or gold jewellery due to convenient payout options, low risks involved and easy convertibility into loans. However, one must always assess the risks involved and weigh them with the opportunity costs before making a decision.

Personal Loan a handbook: What it is and how to apply

 What is a personal loan? 

It is an unsecured loan that you can borrow if you're in need of urgent funds. You don't have to pledge any gold or assets to get funds through this loan. Bank will proceed with your application if you're eligible and if you have a good credit score. The interest rate is comparatively low, and you get a lot of benefits and advantages that will help you in the future. 

The funds you get from a personal loan can be used for various purposes like: 

1. Debt consolidation:- You can use the money you get from this loan to pay your current debts, loans, and credit card bills. 

2. Home renovation:- We all need a change of scenery. So you can apply for a personal loan to get funds for home renovation. 

3. Refinancing:- There are times when we have to take out a loan to pay off other loans. So you can use a personal loan as an ideal option to repay your current loan.

4. Medical Bills:- During this pandemic, the medical bills have turned more expensive. So to cover all your medical bills, you can apply for a personal loan. Getting funds by quickly applying for medical insurance will be tough. 

5. Wedding:- Weddings are a momentous occasion in India. So if you want funds to meet your expenses during the wedding, you can apply for a personal loan. 

6. Vacations:- We all need a break from this stressful reality. So if you're planning to go on vacation, you don't have to use your savings. You can easily apply for a personal loan facility and get funds for the same. 

7. Miscellaneous expenses:- You don't need a big reason to apply for a personal loan. You can apply for a personal loan facility if you want to manage your other expenses or bills. 

Advantages of personal loan

Personal loans are the best option if you're looking to get fund assistance. And if you're still struggling between whether or not you should apply for this loan, then we've mentioned some advantages that will encourage you to apply for a personal loan:- 

1. Hassle-free processing:- The entire loan processing is effortless and quick. You can get your application approved within 2-5 business days. A lot of banks like ICICI Bank, Axis Bank Personal Loan, etc., Will approve your application instantly if you have a high credit score. 

2. Unsecured:- Personal loan is an unsecured loan, so you don't have to pledge any asset as a security. Anyone can apply for this loan, and it doesn't matter if you have any assets or not. 

3. Flexibility:- Customers can freely use the funds they get from personal loans. Banks don't monitor the end-use. However, you can use it for any illegal practices. 

4. Credit Score:- If you're someone who has a bad/low credit score, then you can use this loan as an opportunity to improve your credit score. You'll have to repay your loan installment on time. 

5. Documentation:- Customers don't have to worry much about the documentation process. Banks will only ask you to submit the application form along with some KYC documents and credit reports. 

Eligibility for a personal loan

Each bank has different Personal Loan eligibility criteria. And banks approve individuals applications if they meet the eligibility criteria. We've mentioned some essential eligibility criteria required by the banks below: 

Age:- 21 and above

Employment:- Salaried or Self-employed individuals can apply for this loan. 

Minimum Income:- INR 10,000

Work experience:- Minimum 1 year with the current corporation. 

Credit Score:- 750 and above

Essential factors of personal loan

1. Credit Scores:- It is a three-digit score between 300 to 900 that will determine the borrower's creditworthiness. So if your credit score is terrible/lesser than 750, banks will either reject your application or increase the interest rate. However, if your credit score is high, then you can get a lot of benefits and features like fast loan processing and a low interest rate. Banks don't ask for any asset as a security because it is an unsecured loan, but they still need some factor to build their trust.

2. Employment:- Your employed status will help you to get your loan approved. So you have to be either a salaried or self-employed individual with a minimum work experience of 1 year, to be eligible for a personal loan. Banks will reject your application if you're a student or an unemployed individual. 

3. Income:- Your income will play a significant role to check your eligibility. You should have a minimum of INR 10,000 as your monthly income to be eligible for a personal loan. Your income will determine the loan amount that will be sanctioned by the bank. So be sure to check your income before making a decision regarding the loan amount. 

The personal loan application process

1. You can apply for a personal loan using both online and offline modes. Firstly, you'll have to fill the application form and attach some basic KYC documents regarding your 

1. Identity proof - like Aadhar Card, Pan Card, Passport or Driving License),

2. address proof - like Electricity Bill, Telephone Bill, Postpaid Bills, etc.) 

3. Income proof - Payslip, Form 16, ITR, Tax Challan, etc.

4. Employment status:- Employer Certificate, Offer Letter, Certificate of Experience.

  And submit it to the bank.

1. After you're done with the documentation process, the bank will verify your documents to check whether or not you are creditworthy. 

2. When the bank has approved your application, the loan amount will be instantly disbursed to your bank account. 

This entire process will take 2-7 business days. 

Conclusion:- 

There are several banks and NBFCs that provide the facility of personal loans. So you can compare all the options available in the market and choose your ideal one.

Also Read This-Is Personal Loan Good for Pensioners ?

What is a Gold Loan Insurance

Gold loan insurance is developed for prospects possessing insurance coverage to the gold, pieces of jewellery, embellishments or articles, at the time of closure of the gold loan and thereby discharging all the gold ornaments. This insurance is taken as a part of home Insurance and Insurance for other articles too. 

Gold Loan is the loan taken against gold (gold ornaments or gold articles) as collateral for security reasons from any Bank, NBFC, Local lender or Financial Institution. The gold article or ornament pledged must be within the value of 18-24 carats of gold, delivering a Gold Loan Per Gram of Rs 2737 to Rs 3345. Each family has some gold articles with them, and this protects them at the time of hardship by providing the family gold loan. The gold loans are secured loans as the lender keeps expensive gold jewellery or articles in the creditor’s ownership. If the loan amount is not paid back within the stipulated time, the lender can liquidate the gold to realise his deficit money. The bank or NBFC charges interest rate as per the loan amount borrowed and examines the value and weight of the gold pledged, and when the debtor refunds the gross loan amount along with the rate of interest charged therein, he gets the pledged gold articles back. Banks charge an interest rate on Gold loans that a person takes by securing gold as the collateral for a certain period, and after the loan is reimbursed, the gold is returned to them, which is when gold loan insurance plays its crucial function.

Recently India's dominating private general insurers have joined with general insurance companies to deliver insurance on gold articles and introduced the new initiative of the gold shield. This initiative is formulated to provide insurance coverage on gold articles pledged by customers to the lenders at the foreclosure of the gold loan. After the tenure matures, release the gold articles kept as collateral by them. This loan insurance arrives as part of Home Insurance; therefore, the maximum percentage of insurance coverage for gold ornaments is restricted to 15% of the total home insurance policy amount insured by insurance companies.

The Gold Shield gold loan insurance scheme has some distinct advantages, and they are: simplest way of receiving Gold articles insurance coverage; coverage extends to acts like burglary, thievery, theft from the insured's house, loss in transit and other natural calamities; and comes with nominal premium payments; minimum documentation work; easily accessible over the counter commodity; broader alternatives available of some coverages; includes repair cover for mechanical deterioration; easy claim method and almost takes some minutes to activate a policy.

When the debtor has adequate savings, he should make partial payments of the gold loan to the creditor, which will assist him when he encounters a financial problem. If the principal amount of the loan is repaid before then, the serviceable interest on it diminishes, which facilitates the debtor to save some funds. Many gold loan delivering bank schemes like Axis Bank Gold Loan, SBI Bank Gold Loan, HDFC Bank Gold Loan, etc., give this option for their customers.

Gold loans are the prominent options at times of complications and misfortune but must be availed after proper inspection of its components and repayment options. For example, suppose a person lags to repay the gold loan monthly instalments. In that case, the lending institution can convey the debtor repeated reminders, accuse a penal interest, auction the gold jewellery to keep as collateral and take legal action against him. Moreover, the credit score of the lender will also be influenced due to the outstanding loan repayment. So before applying for the gold loan, the pros and cons of the gold loan must be duly analysed.

Online gold loan payment to the creditor is straightforward, and the payments can be made partial or complete. Muthoot Finance Gold Loan Online Payment provides customers with speedy payments instead of gold loans borrowed. Most of the gold loan financing institutes require the debtor to repay the principal amount and interest accrued therein by visiting the branch office or paying it online. No matter where the debtor pays the loan amount, the final collection of pledged gold must be from the initial Bank branch or NBFC where it was pledged.