How to Select the Best Gold Loan in India?
People who invest more in gold often pledge gold for money. Various financial companies give loans to gold. Gold loans are safe when the lending bank accepts gold items for safety purposes like gold ornaments, jewellery, etc. It is easy to get a gold loan in India with less paperwork. Apart from banks, many non-banking financing firms (NBFCs) also provide gold loans.
If you are looking for taking a gold loan in India, check online for the best gold loan company. You can check online gold loan apply and select the one that best suits your requirement. The loan amount for your gold items depends on the gold purity in your jewellery, lending rules, and the LTC ratio. Also, the lender can set up any minimum and maximum limits.
There are many institutions’ websites where you can see gold loans apply online with which you can check the various process involved in it. Before you apply, check the rates and requirements with both banks and NBFCs.
How can I get a loan from gold?
Many banks and NBFCs provide a gold loan in India. People can avail of this; however, the procedure for gold loans varies from lender to lender. The idea behind a gold loan is the same, where the person pledges the gold articles and gets the loan amount for it. For this, you have to visit any lending institute, where you prefer to pledge the gold.
You will have to carry the required documents. Once you apply for a gold loan, the lender checks the gold purity and finds its weight. It fixes the amount depending on the current market value. Most gold loan in India is sanctioned for up to 80% o the total pledged gold. On evaluating the value of the gold, the lender verifies the documents. Once all are fine with gold, the lender approves the loan.
You can also apply for gold loans online through the bank or NBFC’s website or app. However, you will also need to visit the lender for depositing the gold items. Once, it is done, you can register in the lender’s portal. So, this way, you can apply for a gold load when you need money and get the credit in your bank account.
How can you choose?
Choosing the gold loan company is the most challenging part of your loan process on gold. The next challenging step is to select the gold loan company for the gold loan. There are many options available in the market for gold loan in India. However, when you choose one for the gold loan, you should evaluate your options and take one for your gold loan. Check on the various check while you are looking out for a lender.
- Security – Gold is considered a good investment and many people carry a lot of sentiments with their gold ornaments. Hence, security is one aspect that you need to verify while you go in for a gold loan. You must pledge your gold as a security to get a loan. The lending firm holds your loan till you repay the amount. So, the gold’s safety has to be the main point of the check. Some lenders have the option to secure your gold with an insurance policy.
- Tenure Options – The tenure options for a gold loan largely influences the EMI options and interest rate for the repayment. For you to manage your money efficiently and to take care of your loan commitments, check for a lender that has many options for term alternatives. This will become feasible for your payment as well
- Rates and Charges – Gold loans in India carry various expenses that include appraisal fees, processing fees, late payment fees, etc. These are common costs with loans, and hence you need to check that the lender discloses all these charges. This will help you to be more aware of the amount and builds trust with the lender.
- Repayment Options – You need to check about the lender’s flexible payment options. It must include one-time interest payments, EMIs, and ongoing interest payments. When there are many options, it is better for you.
What are the advantages of a gold loan?
- Faster processing – Gold loans are secured and include soft eligibility criteria and less documentation. It does not require a credit score for the approval of a loan. This loan can be availed if you require immediate money.
- Lower interest rate – Gold loans have fewer interest loans, unlike other loans.
- No processing fees – You can avail of gold loans in India with no processing fees. Even if the lender charges it will be about 1%.
- No charges for foreclosure – Gold loans do not have pre-payment charges, while some banks do charge about 1% as a pre-payment penalty.
- No need for income proof – Gold loan in India do not require showing income proof. Hence, anyone who has gold ornaments can avail of this loan.
- No credit score – Gold loan approval does not depend on credit score.
