How to Apply for Gold Loan & Know Its Benefits?

Apply for Gold Loan

Apply for Gold Loan : Getting a gold loan at the proper time, you’ll reap better benefits with none push or pull from the approval of Rokdabazaar. However, loan aggregators assist you with the simplest repayment options for an honest 5 years. Explore Rokdabazaar so as to reap more benefit for a gold loan.

Apply for Gold Loan and its true meaning!

Apply for Gold loan may be a loan given by a bank or institution to a private who pledges their gold jewellery for money. The gold should be within a variety between 18 to 24 carats. The loan amount may be a certain percentage of the present gold price, also because the quality of the gold. This may vary from bank to bank and is usually up to 80 per cent. The bank also will require certain documents, after which the gold loan are going to be approved and sanctioned. to form the method easier and clear, availing gold loan through a loan aggregator, Rokdabazaar, can help suit your profile to the organisation and disburse loan with only a few necessary documents online.

Documents Required – Apply for Gold Loan

Different banks invite a special set of documents. A number of the common documents required include Passport size photograph, PAN, Voter’s ID, Aadhaar card, passport, driver’s licence, electricity bill, income proof, identity proof and address proof, etc.

Key Features of Gold Loan

Taking a gold loan from a bank or a financial has some features which are more advantageous than a loan. These features include

Quick Disbursal

Minimum documentation required and faster time interval because the loan is secured by your gold.

No Restriction on Use of Loan

The loans are often utilized in any manner or for any purpose. Because the loan isn’t for a specified purpose, the loan isn’t monitored. this provides you the pliability to satisfy any immediate expenses

Secured Loan

Other than the pledged gold jewellery there’s no got to provide the other collateral or guarantor required

Lower Interest Rates

As this is often a secured loan, the rate of interest is relatively less than a private loan and other sorts of loans, the interest rates begin at 11.99% p.a.

Easy Liquidity

Gold jewellery is usually an idle asset lying reception or within the bank locker. Gold loans provide instant liquidity when an emergency arises or when an undeniable expense is anticipated.

Foreclosure of Gold Loan

The gold loan is taken into account a short-term loan and features a tenure of 1 to five years. However, the Gold loan can foreclose the loan before the tenure lapses. While some banks don’t charge a foreclosure penalty, a number of the banks will levy a charge of twenty-two to 4% of the outstanding balance.

Final Word

Before you check in the line, it’s advisable to see and compare the rate of interest, processing fee, late payment penalties, pre-payment charges, and other hidden costs in order that you’re not taken all of sudden when these payments are to be made.

While taking a loan, one should make certain that the loans are often easily returned. Defaulting on a loan will adversely affect your credit rating, and you’ll find it difficult to urge another loan.

The Minimum Salary Required to Apply for Gold Loan

Gold loan eligibility is hospitable anyone who has the gold jewellery to pledge in exchange for a loan. Hence there’s no minimum salary required to be eligible for a gold loan. Unlike personal loans in India or the other instant loan, the gold loan is hospitable homemakers, farmers, salaried people as long as they’re pledging gold with a worth.

You also don’t need a CIBIL score to be ready to apply for a gold loan. However, your repayment of a gold loan will affect your CIBIL score, so you had better stick with the schedule.

However, loan aggregators assist you with the simplest repayment options for an honest 5 years. Explore Rokdabazaar so as to reap more benefit for gold loan. The banks don’t require your business or job stability to grant you a loan. You simply got to show identification proof and Aadhaar card along side the opposite KYC documents.

Gold loaning and borrowing have morphed into modern-day lending, and lots of private and public institutions loan their customers.

Gold loan eligibility

Gold loan eligibility is measured by loan per every gram of gold. The opposite eligibility criteria are:

  • The quality of gold: The ornaments of gold should range between 18 carats to 24 carats
  • You need to be a minimum age of 23 years and a maximum age of 65 years.
  • You can trade gold coins and gold bars with 18 to 24-carat purity.
  • The loans are often utilized in place of a travel loan or the other online loan, because it is straightforward to acquire and requires less documentation.
  • Need to be a citizen of India

Reasons to settle on a gold loan

  • When you technically haven’t any credit history that’s required when applying for the opposite loans
  • When you want to scale back the expenses, you incur when processing other facilities.
  • When you got to have the loan urgently, processing a gold loan is fast in approval.
  • If you’ve got gold that you simply are willing to pledge with a financial lender to urge the loan, then this is often definitely for you.
  • During emergencies.
  • You are trying to find a loan tenure of quite 36 months

The loan might not be suitable for you

The credit might not be ideal for you if:

  • If you’ve got other ways to urge a lower interest loan, then the gold loan isn’t suitable for you.
  • If you’re not willing to spare your gold, then the loan isn’t for you.

The gold loan is given against the collateral you provide, then it’s easier and faster to urge . The rate of interest is relatively less than other investments stating at 11.99% p.a.

Apply for Gold Loan Without a PAN card

A loan against gold or gold loan may be a sort of secured loan during which a private, the customer, pledges their gold ornaments as collateral with a gold loan company or organization. In turn, the corporate gives a loan amount, as per the market price of the gold submitted, to the customer.

Availing a loan through loan aggregators can suffice your financial needs together with your gold. Loan aggregators meet the proper bill with the borrower’s profile. Rokdabazaar offers flexible tenure for repayment.

When compared to other personal loans, the procedure for availing a gold loan is taken into account as a reasonably easy and quick way of fulfilling one’s financial needs. The choice to mortgage is gold ornaments or jewellery during this case. The method for availing a gold loan is sort of a hassle-free experience in comparison to the opposite sorts of personal loans. It also requires minimal paperwork. Also, gold loans don’t require minimal documentation and no validation for income or salary of the individual availing an equivalent.

Thus, if someone has gold ornaments, albeit they’re unemployed or unsalaried, they will avail of a gold loan. The rationale for this being that one is pledging gold, a really valuable asset, reciprocally for the loaned amount.

Documents required for availing a gold loan

Gold loans are one among the only and quickest ways to monetize one’s gold and obtain money accordingly, because it involves minimal paperwork and requires no validation regarding one’s employment status. However, there’s an entire assessment done by the financer or bank on the submitted gold. They accept gold measure 19 – 24-carat pure gold.

To verify the identity of the customer, the bank or financer requires one to possess any of the following:

  • E-KYC (e-Know Your Customer)

Verification of the customer’s Aadhar card with UIDAI and fingerprint are often done online.

  • Physical KYC – any of the below-mentioned documents
  • Aadhar card
  • PAN card
  • Valid driver’s license
  • Valid Passport
  • Voter’s ID card
  • Job card issued by NREGA

Often, this is often the foremost obvious question we ask ourselves and therefore the financial organization to assist us know the documents that require to be submitted.

Can one get a gold loan if he/she doesn’t have a PAN card?

NO! One has got to obey the govt rules to avail a PAN card to avail gold loan. The mandatory requirements for this are an identity proof and address proof. Thus, any government-issued identity and address proof should be used for this. Also, ID cards issued by companies for working professionals are going to be of additional benefit in availing a gold loan.

Apply for Gold Loan and its rate of interest

Interest is that the amount you pay back with the principal amount to the lender after you’re advanced with a loan. Borrowers are expected to pay a monthly EMI to incorporate the interest.

Given that the gold loan is advanced against security.

Availing a loan through loan aggregators can suffice your financial needs with gold. Loan aggregators meet the proper bill with the borrower’s profile. They assist ease your repayment process. Rokdabazaar counter gauge this with an innate objective for each person to clear their financial crisis.

Factors affecting the interest on a gold loan:

Relationship with the bank

They usually advance special offers to their existing clients. When a client has another account with the bank, then they’re sure to get a lower rate of interest on the gold loan.

Loan to value ratios

The higher the quantity of credit compared to the worth of the gold then, the upper the rate of interest. But when the quantity borrowed is lower compared to the worth of the gold, then the rate of interest is more economical.

Loan amount

The higher the loan amount, the lower the rate of interest when all factors remain constant. But smaller loans attract a better rate of interest during a Gold loan.

Features of gold loan Interest

Unlike the interest you pay in other personal loans in India, the gold loan interest is lower, starting at 11.99% p.a.

There are not any pre-processing fees for this interest are lower. With a gold loan, you’ll make a neighborhood prepayment and reduce your payment period and, consequently, the rate of interest payable.

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