Indian consumer habits include purchasing gold on a regular basis. A higher number of buyers are interested in buying golden trinkets and view gold as a reliable investment. But few individuals know that you may use gold as collateral for loans if you need money. There is no need to sell your gold to get money because many lenders will let you use your gold as collateral for loans. The good news is that you can obtain loans at low rates of interest because so many financial institutions are currently offering a gold loan in the market. However, keep in mind that there is a simple process you must adhere to in order to obtain loans without any difficulties.
Steps to take when requesting a gold loan
From one lender to another, the application procedure for a fast gold loan can differ. However, the majority of lending institutions adhere to the following procedures:
- Visit a bank or NBFC that offers cash in exchange for a loan along with the required paperwork and gold.
- To ascertain the market worth, the financial institution will weigh the gold and assess its purity.
- Up to 80% of the gold’s value may be accepted by the lender, then the lender will provide the borrower access to the gold finance.
- The documents are verified after the market value has been established.
- The borrower receives the loan amount.
Alternatively, you can use the lending company’s website or mobile app to submit an application for a quick gold loan. The gold loan calculator predicts the exact rates on the interest. However, you would need to go to the branch to submit the gold items, whose purity will be checked. After that, you can register on the bank’s or NBFC’s official website or mobile application to apply for loans online. To make the procedure quick and simple, you can also apply for a loan using lending portals or go directly to the regional branch of your lender.
Things to think about before requesting a gold loan
- The most important thing to keep in mind when applying for gold financing is to select a reputable lender that has been in business for some time and earned the trust of customers.
- Select a lending institution that offers easy procedures and documentation for obtaining loans. If everything is in order, a few lenders can offer cash in a matter of minutes.
- There are a handful of financial institutions that don’t levy prepayment penalties. The borrowers would save a substantial sum of money with such a facility.
- Have your priceless gold items kept in a safe place so you don’t have to worry about the security of your possessions.
- selecting a plan that best satisfies your needs. For fact, there are loans available only to women that can benefit borrowers more.
- Most lending organizations’ websites would provide gold loan calculators that you can use to determine the interest rates, tenure, and other aspects.
- Any Indian who is at least 18 years old and possesses the required papers may apply for a gold loan.
- Most lenders don’t require borrowers to give a guarantee of any kind in order to get loans from them.
- Once the entire sum plus interest has already been paid, the pledged gold will be returned to you.
- The lending institutions often ease the repayment process for the borrowers. And also exercise the greatest degree of flexibility in the event that the borrower encounters difficulties making the payment.
- You can even raise a small sum to cover your immediate financial demands using the promised gold. The principal sum and the market value of the assets submitted would decide the interest rate.
- To ensure there are no problems about the market value of the gold pledged. Make sure to evaluate the gold using the internal validators of the lending institution.
In the internet age, getting a gold loan has grown simpler. But you still need to do your research to choose the most reputable lender for you. You do not wish to entrust your priceless assets to a lender. Who won’t enhance the transaction or offer you any additional benefits. Locating a financial partner who offers better perks and does not really cause any problems for your lending process is the goal.