During times of dire need, gold loan companies have proven to be a savior. Gold ornaments could be mortgaged to find funds for varying requirements by taking out a gold loan at the lowest rate. One of the most important factors in India’s gold imports.
Most importantly, India is the biggest importer of gold for its use. Individuals have used the yellow metal for a wide range of purposes. In addition to being a safe investment, it has many uses. Also, during a financial crisis, gold ornaments may be used to obtain low-interest gold loans.
A gold loan NBFC offers the lowest gold loan rates. Gold loan companies offer a faster gold loan than the banks. Thanks to this pragmatic approval process, the customer can obtain a gold loan with low-interest rates. That makes Gold Loan One of the most popular gold loan companies.
What are the steps for obtaining a gold loan?
There are different procedures for processing and approving loans by gold loan companies and gold loan banks. Because gold loans are secured loans, minimal paperwork is needed. In addition, banks introduced innovative customer-oriented measures, contributing to the position as the leading gold loan provider. It is believed that banks are responsible for providing maximum financial assistance to people.
There are times when people only need a small push, a little money, for great accomplishments. Entrepreneurs, homemakers, self-employed professionals, and others searching for finance to restart their careers have asked us for assistance. In addition, banks made sure that gold loan interest rates were low, so borrowers weren’t burdened.
Here is an explanation of the gold loan procedure that follows. Gold loans are available in two forms, traditional gold loans and Online Gold Loans (OGL). Depending on the customer’s needs, the customer can choose the best option.
In today’s world, one may also apply for a gold loan online using the bank’s or NBFCs mobile application or its website. Online applications for gold loans do not mean that you won’t have to visit your lender.
A gold loan online can only be obtained if you visit your lender at least once to deposit your gold articles. You will then be able to register yourself on the lender’s customer portal or mobile application and link your bank account. If you require money urgently in the future, you can apply for a gold loan and have the available credit disbursed directly into your bank account in just a few minutes, anywhere in the world.
What are the advantages of the gold loan?
Process faster –
Since gold loans are secured loans, they have lenient eligibility criteria and minimal documentation requirements. A credit score is not even required for approval. Because of this, lenders usually disburse the loan within 24 hours. Those who qualify for an online gold loan may receive their loan amount within a few minutes.
Low-interest rates –
Unlike an unsecured loan, such as a personal loan, gold loans, which are secured loans, charge lower interest rates. In addition, if you attach another asset as collateral, the gold loan interest rate can be further lowered.
There are no processing fees –
Gold loans are typically fee-free at many banks and NBFCs. Processing fees are usually 1%, even if a lender charges them.
Charges of foreclosure are not assessed –
Some lenders do not charge prepayment penalties, while some banks charge a prepayment penalty of 1%.
There is no need to provide proof of income –
As gold loans are secured by gold, lenders are generally not required to ask for income proof. Accordingly, gold loans are available to everyone, whether they earn money.
Do Gold loans have any Disadvantages?
You receive a certain percentage of the value of the gold pledged as the loan amount in a gold loan. Loan amounts are determined by the LTV (Loan-to-Value) ratio. Depending on the lender, the ratio can reach up to 80% of the value of the pledged gold. The maximum you can get is Rs. 4 lakhs if the value of your gold is Rs. 5 lakhs.
Many gold articles are lying idle in lockers in Indian households. However, when you need them most, they can prove extremely useful. Gold can be used as an emergency fund when you have an urgent need for money. Your gold should not be sold but pledged to a lending institution.
In India, several banks and non-banking financial companies offer gold loans to their customers at attractive interest rates. Hence, if you are also looking for a reliable and best gold loan, Rupeek can help you get an instant gold loan with minimal documentation and the best interest rate.
They also provide you a facility to calculate the interest rates of the gold loan per gram easily using their free-to-use gold loan calculators. Many people got an instant gold loan with the help of Rupeek and fulfilled their financial needs.