A gold loan is considered to be a secured loan. Here, pieces of gold jewellery are kept as collateral. When one goes for that, they can also, in turn, get a loan which is worth 75 percent of the entire value of the jewellery and other gold things they have submitted. This loan can also be repaid in flexible instalments.
One can go for the best gold loan both online and offline. This is sort of a secured loan, and so the interest rate of the gold loan is both low and appealing to the individuals. As mentioned above, both gold jewelleries and bars are pledged as collateral here. The loan’s value can be determined by the purity of the gold submitted and by its value. If the jewellery contains gemstones, then the value of those gems is ignored, and only the value of gold is taken into account.
Know in detail about gold loans
Before applying for gold loans, here are a few things that one should know:
- This loan is quite simple to apply for. One can just simply walk to the lender’s office along with their gold, and they need to show their Pan or Aadhar Card. One also needs to submit at least 2 passport-sized photos if they apply for a gold loan. Once the gold is pledged, one can receive the loan easily.
- The gold which has been pledged is kept quite securely by the lenders. The gold is kept in the vaults, and they are constantly being watched by CCTV cameras. The lenders can also insure their gold so that they can provide one with additional security. The gold is returned to the customer once they have paid back all the EMIs and loans along with all the interests included.
- Anyone can apply for a gold loan (they just need to be above the age of 18) and should be an Indian citizen. They also need to have all the necessary documents. If one can bring all the gold, they want to pledge along with all the necessary paperwork, then the loan can be approved almost immediately. The loan, once approved, the amount is deposited in the bank account within a couple of hours. That is why; it is said that a gold loan is the simplest way in which one can go for loans.
- When one applies for a loan at the bank, then the bank has to verify all the needed set of documents before they can sanction any loan. They also need to check the identification proof of the applicant along with the income proof.
- A gold loan is quite an adaptable option for many. Along with the secure set of processing, they have a simple payment procedure. One can also repay the entire amount in EMIs. One can also refund the principal amount when the tenure ends.
Hence, one can easily apply for a loan against gold and the repayment time is mostly within 3 to 12 months.