‘All that glitters is not gold’ goes the well-known proverb. Gold and its craze in India is prominent. There are even auspicious occasions where one specifically purchases gold in India like ‘Dhanteras’ and ‘Akshaya Tritiya.’ India are the biggest importers of gold in the world. But were you aware that this gold can act as a financial aid during emergencies? Be it medical, child education, business expansion or holiday with your family, gold comes to the rescue in financing these expenses.
What is gold loan?
Several banks and non-banking financial companies (NBFC) offer gold loans. They are the most hassle-free and quickest way of getting cash. Lower middle-class segment makes use of the gold loan in their lockers for funding their child’s education or wedding, till date. One can acquire the credit against any piece of gold like jewellery, gold coins or gold biscuits.
Gold loan in India comes with specific benefits:
Faster processing of loan:
Banks are receiving physical gold as collateral for the loan; they tend to happily disburse the mortgage right away. Value of the gold is determined on the spot by an expert. Based on the examination, banks provide the loan in few hours or maybe even 45 minutes, if the process is conducted swiftly. Brownie point: no processing fee is applied.
Fulfils short-term goals:
Want to head to that dream destination but facing lack of funds? Loan on gold is provided for short as well as long-term goals. The tenures for short and long-term is 6 months and 2 years respectively.
Borrow in thousands or lakhs:
Personal loans are usually not offered if the amount required is not more than INR 1 lakh. When it comes to a gold loan, one can borrow anywhere between INR 50,000 and INR 50 lakhs. Thus, both small and large financial requirements are fulfilled.
No credit issues:
Unlike other loans which are issues based on your high credit score, the case is different with the gold loan. Since the gold is used as collateral, the bankers are not worried about low credit score.
Lower interest rates:
As these are secured loans, the interest rates are lower than unsecured loans like a personal loan. If you attach another collateral along with gold, the interest rate can be reduced further. The interest rate begins from 13 to 14 percent as compared to personal loan rate that starts at 15 percent.
No requirement of income proof:
While equity loans have made it mandatory to provide income proof, loan on gold requires just address, identity proof and passport size photographs.
Special gold loan schemes:
Certain banks offer special gold loan schemes for women and agriculturists. In case you are eligible for the same, one can contact the financial institutions to avail them. Some banks offer loan against gold on discounted rates to many. Some schemes are streamlined for people in business and small and mid-sized companies.
Some of the best banks that offer gold loan in India are:
- Muthoot Finance Gold Loan
- Manappuram Finance Gold Loan
- Union Gold Loan
- HDFC Gold Loan
- SBI Gold Loan
What is gold loan?
Several banks and non-banking financial companies (NBFC) offer gold loans. They are the most hassle-free and quickest way of getting cash. Lower middle-class segment makes use of the gold loan in their lockers for funding their child’s education or wedding, till date. One can acquire the credit against any piece of gold like jewellery, gold coins or gold biscuits.
Gold loan in India comes with specific benefits:
Faster processing of loan:
Banks are receiving physical gold as collateral for the loan; they tend to happily disburse the mortgage right away. Value of the gold is determined on the spot by an expert. Based on the examination, banks provide the loan in few hours or maybe even 45 minutes, if the process is conducted swiftly. Brownie point: no processing fee is applied.
Fulfils short-term goals:
Want to head to that dream destination but facing lack of funds? Loan on gold is provided for short as well as long-term goals. The tenures for short and long-term is 6 months and 2 years respectively.
Borrow in thousands or lakhs:
Personal loans are usually not offered if the amount required is not more than INR 1 lakh. When it comes to a gold loan, one can borrow anywhere between INR 50,000 and INR 50 lakhs. Thus, both small and large financial requirements are fulfilled.
No credit issues:
Unlike other loans which are issues based on your high credit score, the case is different with the gold loan. Since the gold is used as collateral, the bankers are not worried about low credit score.
Lower interest rates:
As these are secured loans, the interest rates are lower than unsecured loans like a personal loan. If you attach another collateral along with gold, the interest rate can be reduced further. The interest rate begins from 13 to 14 percent as compared to personal loan rate that starts at 15 percent.
No requirement of income proof:
While equity loans have made it mandatory to provide income proof, loan on gold requires just address, identity proof and passport size photographs.
Special gold loan schemes:
Certain banks offer special gold loan schemes for women and agriculturists. In case you are eligible for the same, one can contact the financial institutions to avail them. Some banks offer loan against gold on discounted rates to many. Some schemes are streamlined for people in business and small and mid-sized companies.
Some of the best banks that offer gold loan in India are:
- Muthoot Finance Gold Loan
- Manappuram Finance Gold Loan
- Union Gold Loan
- HDFC Gold Loan
- SBI Gold Loan
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