We Indians love gold, and this is now proved by the fact that India owns more than 22,000 tonnes of gold. Be it investors or housewife, gold has been one of the top priorities. We buy gold not only because of its cultural value but also because it always proves as a safe haven for the people who are in need of emergency funds.
But, what we do about this gold asset? Most of the time it is lying idly in banks or home locker. We can use this gold just to fulfill all our dreams. At least it can help us to complete our small desires. How..?? Simple, just apply for gold loan and get instant money within half-an-hour.
Gold loans are easy and quick. Any individual who is above 21 years of age can avail gold loan from any bank or NBFC (non-banking financial company) at much lower interest rates. This is the simplest form of loan as it doesn't require any income proof. So, a housewife or a person who is without employment can easily get gold loan.
You will get maximum of 75 percent of the pledged gold value. You can take gold loans by pledging gold jewellery and gold coins. The purity of gold should be 18-24 carat. Banks accept only banks coins. (coins up to 50 grams)
Following are some of the important points related to gold loan:
Interest Rates: Rate of interest will be around 10-21 percent. If you are taking agri gold loan then your rate of interest will be below 10 percent. Some banks offer lesser rate of interest for more loan amount.
Documentations: Gold loans are one of the easiest form of loans. You just need one identity proof (passport, voter's ID, PAN card, driving license and Aadhar card) and one local address proof (electricity bill, telephone bill and other document of your current residential address like rent agreement.
Some banks/NBFCs also ask for your PAN details if your loan amount is above Rs 100,000/- along with two passport size photographs.
Ask about repayment structure and other charges like processing fee, valuation fee and pre-payment or later payment penalty before you take loan.
Though gold loans are easily available, just check history about lenders before you go for a loan. You can also get gold loan from local jeweller or pawn broker. But, you should avoid taking loan from these people as they are charging higher rate of interest plus there is no security about your gold and there is also chance of losing your belongings. Because, these pawn brokers egregiously charges high interest rates which will ultimately make it almost impossible thing to repay on time. In case if you are not able to repay your loan then the pawnbroker may sell your asset.
So, why to take these risks, when you can easily avail gold loan from banks/NBFCs. Your gold will be safe in the hands of banks/NBFCs, because they will keep it into the locker and as soon as you take loan, your gold will insured. And, once you have repaid the loan amount of the gold loan, you can take your gold happily back from the lender.
But, still every loan is a liability hence go for a gold loan only if you are confident about repayment and only if there is emergency.
Still have any query about gold loan? Then just give us a missed call on 730 405 6777, our GoldUno customer care executive will soon get back to you.