Owning pieces of gold jewellery in India by families is very important as gold holds both emotional as well as religious sentiments. Gold is the symbol of the Goddess Lakshmi according to Indian mythology and is associated with wealth and prosperity. The value of gold is very high and is given as presents at weddings, festivals, as birthday gifts, at anniversaries, or for any other occasion. Therefore, almost every household in India has some form of gold or the other.
Gold is considered as an asset in India and has many benefits associated with it. For example, gold can be pawned and can also be used against taking a loan. Opting for a gold loan is a quick and easy process and extremely beneficial too. Gold loans are secured loans where the gold is kept in a vault in the bank. However, in case the loan borrower fails to repay the debt amount then the bank can sell off the piece of jewellery.
The benefits of a gold loan are many; the processing time is less as compared to other loans because the bank has the alternative to sell of the gold ornament in case of default by the borrower. Gold loans are imbued with the special feature where the borrower has the choice of paying the principal amount at the end of closing the transaction and only paying the interest part. Gold loans have an interest rate of about 11-15% as opposed to unsecured loans which have a starting range of 15%, therefore applying for a gold loan will provide you with a lower rate of interest.
When applying for a gold loan, often there is no processing fee and no foreclosure fees as well. In case the borrower has a bad credit history, it is not held against the borrower when he/she tries to apply for the this loan. There is no question of income proof; the monthly income or expenditure of the borrower is not a factor for gold loan application.
As mentioned above some piece of gold jewellery or the other is owned by perhaps every family in India. Applying for a loan against your gold can be extremely beneficial in case of a dire medical, financial or educational emergency. It can be quickly availed of and has low interest rates as compared to personal loans. At the time of application you only need one authentic residential proof and one government sanctioned identification proof such as a passport, or PAN card, voter card, driving licence, passport or even a ration card.
Gold is considered as an asset in India and has many benefits associated with it. For example, gold can be pawned and can also be used against taking a loan. Opting for a gold loan is a quick and easy process and extremely beneficial too. Gold loans are secured loans where the gold is kept in a vault in the bank. However, in case the loan borrower fails to repay the debt amount then the bank can sell off the piece of jewellery.
The benefits of a gold loan are many; the processing time is less as compared to other loans because the bank has the alternative to sell of the gold ornament in case of default by the borrower. Gold loans are imbued with the special feature where the borrower has the choice of paying the principal amount at the end of closing the transaction and only paying the interest part. Gold loans have an interest rate of about 11-15% as opposed to unsecured loans which have a starting range of 15%, therefore applying for a gold loan will provide you with a lower rate of interest.
When applying for a gold loan, often there is no processing fee and no foreclosure fees as well. In case the borrower has a bad credit history, it is not held against the borrower when he/she tries to apply for the this loan. There is no question of income proof; the monthly income or expenditure of the borrower is not a factor for gold loan application.
As mentioned above some piece of gold jewellery or the other is owned by perhaps every family in India. Applying for a loan against your gold can be extremely beneficial in case of a dire medical, financial or educational emergency. It can be quickly availed of and has low interest rates as compared to personal loans. At the time of application you only need one authentic residential proof and one government sanctioned identification proof such as a passport, or PAN card, voter card, driving licence, passport or even a ration card.
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