Instant Gold Loan : All You Need To Know About

Author : nikkicross
Publish Date : 2020-04-20


 Instant Gold Loan : All You Need To Know About

A gold loan is a type of secured loan in which the borrower has to pledge gold as collateral for the loan amount to be borrowed. The gold that is to be pledged could be in the form of ornaments, coins, bars, etc. In other words, you can get cash for gold in this particular loan scheme. Gold loans come at affordable interest rates, usually ranging from 10 - 12%. 

 

The upper limit loan amount is decided by a certain percentage of the value of gold. This percentage is usually decided by the lender and hence, differs from lender to lender. Gold loans are generally short-term loans and therefore are to be repaid within a few months or a few years as per the terms and conditions of the lender. If failed to repay the loan in time, the lender has the authority to sell the gold pledged by the borrower to get his money. According to a recently published KPMG report, the gold loan market is anticipated to meet Rs. 4,617 billion by 2022, with an annual compounded growth rate of 13.4%. To get an all in all idea about what gold finance is, let us look at all the aspects of a gold loan.

 

Age bar

 

Unlike personal loans, gold loans can be availed by anyone who is 18 or above and below 75 years old. Hence, if you have extra gold in your locker, you can use it to get a gold loan in India.

 

Purity of gold

 

The gold that the borrower wants to pledge as collateral against the instant gold loan has to be of 18-22 carats. Gold, in its purest form, is of 24 carats.

 

Paperwork

 

Since gold loans are already secured by the collateral, there is no need for much documentation. The applicant is only required to submit a few basic identity proofs. This makes availing a gold loan a lot less cumbersome as compared to others.

 

Approval time

 

Since gold loans require less documentation, it saves a lot of time in the verification process, making the whole procedure a lot faster. It only takes a few hours to avail a gold loan after the submission of the required documents. This is what makes cash for gold loans the perfect option for getting instant cash at the time of financial emergencies.

 

Interest rates

 

Gold loans come at affordable interest rates and differ from lender to lender. To find the most lucrative gold loan scheme, you need to compare multiple gold finance schemes. You can find a gold loan interest calculator online that can help you figure out the overall interest that you have to pay for the sanctioned cash for gold loan amount for the tenure.

 

Repayment options

 

The repayment of gold finance can be made in two ways. You can either pay the net sanctioned amount along with interest at the end of the tenure or in equated monthly instalments (EMIs), whichever you feel is convenient for you. In case you want to go for the EMI option, gold loan EMI calculator can be found online which can tell you the exact equated monthly instalment that you need to pay every month, helping you to access your finances in advance.

 

Independent of credit score

 

A credit score or CIBIL score is a three-digit score ranging from 300-900 offered to an individual based on his or her credit history. Unlike personal loans or business loans in which the lenders prefer individuals with a higher CIBIL score, gold loans being secured loans, the lenders do not consider the individual’s credit score. Hence, applicants of instant gold loan can get the loan approval irrespective of their credit score.



Category :education
Author Website : Muthoot Fincorp

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