Gold loans have been quite popular in the country as a majority of Indian households owns this valuable metal that can be used as collateral. This is one of the many reasons why we consider gold to be such as an asset. Now, add to the gold loan the convenience provided by online banking and there you have a winner of a combination. Most of the major banks have come up with a plan in which you can apply for a gold loan online and thus enjoy the bst of both worlds.
Why should I take a Gold Loan?
The benefits of taking a gold loan are multifold:
Transparency
The commercial houses which are entitled to give gold loans have a strict policy of Transparency. They don’t indulge in any hidden charges whatsoever. All the terms and conditions are straight forward and all the information is provided clearly.
Low interest rates
The interests on gold loans are reasonable. The commercial houses uses gold loan EMI calculator. This calculator helps you find out how much EMI you would need to pay for the borrowed amount against the gold.
Flexibility in repayment
Commercial houses have a policy of flexibility with the EMI schemes. A consumer can take an additional loan after a certain period of time simultaneously with the current loan amount and if they want to clear off their dues, there are no extra repayment charges.
Doorstep services
The commercial houses aims at maximizing customer care facilities. With a sensitive asset like gold, the commercial banks/financial institutions offer doorstep services to ease out the trouble.
Procedure:
Meeting the eligibility criteria
The eligibility criterion of a gold loan is not stringent at all. If a person who is at least 21 years old with a valid identity proof can prove his/her claim of owning the gold, he/she will be eligible for a gold loan.
Reserve rates
Financial institutions have a flexible reserve rate against gold. This is the rate which deducts a certain amount from the value of the loan because of fluctuating market risks and incase if the consumer fails to pay the amount, the loss needs to be accounted for.
Quality inspection
Finally the loan is sanctioned when there is an approval by the authorities about the purity and weight of gold according to which the loan is sanctioned for.
Other advantages of gold loans:
Security
Gold is an asset which can be stored for future use, it can be liquefied whenever the owner deems so. The rates are fluctuating and there’s a possibility that in the future the value of it might double. The gold that is mortgaged can be used over and over again for a long period of time.
Low risk
Being emotionally attached to a gold ornament in a household, the borrowers end up either pre paying the amount or clear all EMIs on time which is an added advantage.
Speedy sanction
Gold loans do not require days and months to get sanctioned. It’s only a few minutes job. No long procedures are required. The complete process of approval and sanction of the loan depends on the quality of the gold provided and its verification.
Why should I take a Gold Loan?
The benefits of taking a gold loan are multifold:
Transparency
The commercial houses which are entitled to give gold loans have a strict policy of Transparency. They don’t indulge in any hidden charges whatsoever. All the terms and conditions are straight forward and all the information is provided clearly.
Low interest rates
The interests on gold loans are reasonable. The commercial houses uses gold loan EMI calculator. This calculator helps you find out how much EMI you would need to pay for the borrowed amount against the gold.
Flexibility in repayment
Commercial houses have a policy of flexibility with the EMI schemes. A consumer can take an additional loan after a certain period of time simultaneously with the current loan amount and if they want to clear off their dues, there are no extra repayment charges.
Doorstep services
The commercial houses aims at maximizing customer care facilities. With a sensitive asset like gold, the commercial banks/financial institutions offer doorstep services to ease out the trouble.
Procedure:
Meeting the eligibility criteria
The eligibility criterion of a gold loan is not stringent at all. If a person who is at least 21 years old with a valid identity proof can prove his/her claim of owning the gold, he/she will be eligible for a gold loan.
Reserve rates
Financial institutions have a flexible reserve rate against gold. This is the rate which deducts a certain amount from the value of the loan because of fluctuating market risks and incase if the consumer fails to pay the amount, the loss needs to be accounted for.
Quality inspection
Finally the loan is sanctioned when there is an approval by the authorities about the purity and weight of gold according to which the loan is sanctioned for.
Other advantages of gold loans:
Security
Gold is an asset which can be stored for future use, it can be liquefied whenever the owner deems so. The rates are fluctuating and there’s a possibility that in the future the value of it might double. The gold that is mortgaged can be used over and over again for a long period of time.
Low risk
Being emotionally attached to a gold ornament in a household, the borrowers end up either pre paying the amount or clear all EMIs on time which is an added advantage.
Speedy sanction
Gold loans do not require days and months to get sanctioned. It’s only a few minutes job. No long procedures are required. The complete process of approval and sanction of the loan depends on the quality of the gold provided and its verification.
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