A gold loan is secured credit solution that borrowers can get by pledging gold jewelry as collateral. The disbursed amount against gold is a percentage of pledged ornament’s current market value. Nowadays, financial institutions can lend up to 75-80% of the value of gold as per RBI’s guidelines and a demand for gold loan has increased over decades so this trend doesn’t seem to finish soon.

There are several factors that are taken into consideration while deciding loan money in lieu of gold jewelry. When you “Apply For Gold Loan“ the granted LTV ratio depends upon the form of gold, its weight and purity, borrower’s repayment capability as well as loan tenure. The above listed factors must have helped establish an idea of the things that lender consider while deciding loan value. Let’s discuss all these parameters:

Loan-to-value ratio: This value is an assessment of lending risk conducted by any lending institution before approving any loan. It is a percentage of pledged asset’s value that a lender can lend to a potential borrower. Besides that, loan seekers can use online gold loan calculator to evaluate the loan quantum beforehand. Hence, it is good to know about various loan options and choose the most suitable one.

Purity of ornaments: The purity of provided gold assets as collateral crucially impacts the granted loan money. As all knows, quality of gold jewelry is measured in carats ranging from 18 to 24 in numbers. More will be the purity of pledged jewelry, more you will receive the funds against it.

Weight of gold assets: It is one of the major factors that every lender considers while approving a gold loan. However, your gold ornaments are studded with diamonds or any other precious stone, only the weight of gold will be a determining factor. An individual who pledge higher gold weight age can secure more funds. Basically, one has to pledge minimum of 10-15 grams of gold as security against gold loan.

Eligibility: Apart from these significant factors, the other parameter that determines your loan value is meeting the eligibility criteria specified by particular lender to get an affordable rate of interest. There is a basic criteria check for gold loan which is easy to meet such as borrower should be above 18 years of age and have a sufficient amount of gold. Therefore, gold loan is an ideal credit solution for borrowers as it has no stringent eligibility criteria.

Rate of interest: The interest rate is measured based upon the creditor’s risk assessment and may differ from one lender to other. Moreover, the loan quantum and loan tenure plays a significant role in determining applicable gold loan rate. When you “Apply For Gold Loan Online“ or offline, always go with prominent lending institutions such as ShubhBank. A loan seeker must do a proper lending market research before choosing a lender for you.

Sounds simple enough! So, if you have idle gold assets and you are dire need of cash, then just opt for gold loan to fulfill your financial requirements easily.

Nowadays, it is becoming tough to sustain and maintain the cost of livings because of ongoing pandemic along with a trail of economic downfall as well as devastation. However, financial crunches and emergencies can knock your door anytime but it’s up to you that how to cope up such situations? One can either “Apply For Gold Loan“ or a Personal Loan.

These two loans are most popular among borrowers due to faster processing and they never restrict the end user to use their loan money to fulfill the purpose. Now the question arises- which one is better option among both loans? To know this, we have mentioned few factors which help you to compare both the loans. It will give you better understanding of both the loans to decide which loan suits best to your financial situation.

Loan Size: As Personal Loan is an unsecured loan so the loan money ranges between 50 thousands to 15 lakhs. Some of the lenders can even offer a higher amount depending upon your creditworthiness and repayment capacity.

Gold Loan is secured type of loan and the loan quantum purely depends upon the gold amount that you will pledge as security. A lender can provide maximum of 75% of your gold’s value. Therefore, if your gold value is more, you can secure higher loan amount.

Tenure: The loan tenure given for Personal Loan is 1-5 years but few lending institutions will provide the longest tenure of 8 years. If you have low income then opting a longer tenure with smaller EMIs is a better solution.

Gold loans can be offered for tenure of few months to 5 years but it can be best option if one can afford a higher EMI payment for a shorter tenure.

Repayment: Personal Loan can be repaid in monthly installments which will be a mix of payable interest and principal amount. This is the only option which you must follow whereas Gold Loan can be repaid in different modes such as bullet repayment, monthly installments and upfront interest method, so you can any of one that suits your pocket.

Processing Fees: The charges for processing a Personal Loan can be 2-3% of the entire loan amount which is standard and mandatory but when you “Apply For Gold Loan Online“ or offline, the lender may charge processing fees up to 1-2% of the total loan amount. These charges are much lower than the charges on Personal Loan.

To reiterate, one can make choice between Gold Loan and Personal Loan depending upon their need, credit score as well as repayment capability. Personal Loans can be ideal choice for the borrowers who are looking for a higher loan quantum where as Gold Loan can be best for the customers who wish to opt flexible repayment options and also have a bad credit score.

If you are also planning to apply for Best Gold Loan, then you can visit ShubhBank or apply online at our website to enjoy stress free loan journey at lowest possible interest rate.

However, digital payments were once a convenience but have become integral part of life these days. The restrictions have risen during the Coronavirus Outbreak which has further pushed this necessity. It’s not just the case as digitalization has also changed the way people borrow funds. Any potential loan seeker can now access the funds with a single click of fingertip sitting in their personal space.

As online loans are gaining momentum, especially gold loans are turned out to be savior in these tough times as they are offered on lowest possible interest rates and have easy repayment structure. It is easy to “Apply For Gold Loan“ but there are certain things which you must check on while taking an online loan.

Lender’s Credibility: It is good to do a thorough research about the online lender and his/her credibility before you avail a gold loan. Get through various factors to verify the digital presence of the lending institution which involves authentic website, ethical loan terms and conditions as well as customer reviews. One can also check whether the lender is registered with RBI or a partner associate with verified financial institution.

Online Payment Mechanism: Prior making any digital payments for your gold loan, it is significant to track the verified accounts. Never make any payment under a DSA or loan executive name. To your convenience, digital lenders offer multiple repayment structures where you can repay your loan money using various EMI methods such as bullet repayment, regular monthly installments or overdraft facility.

Customer Relationship Management: Make sure yourself that the specific lending platform provides you with an efficient customer service mechanism because a legit online lender always provides you with reminders on repayments via SMS and mails on availing a gold loan. A real-time digital lender will ensure communication from the initial stage of taking a loan to the time until you repay your entire loan amount.

Rates of interest: It is the topmost advantages of digital loan against gold that you can easily compare the different lenders offering gold loan with different deals without asking your credit score. One can also compare the different rates of interest and other processing charges before you “Apply For Gold Loan Online“ to choose a best lender for you. Other benefit associated with online gold loan that operation costs will be less, hence lowering borrowing costs.

Know the loan terms: The authentic lender always let you understand all the loan terms and conditions as well as all the processing fees details by their loan executive. However, it is borrower’s duty to read each and every loan clause carefully mentioned in the loan agreement before signing it. One can also compare the multiple gold loan schemes and its terms and conditions before finalizing any digital lender.

To get a best gold loan deals and customized assistance for your loan online then one stop solution, ShubhBank can be a great choice as they provide digital gold loans at competitive interest rates being a frontrunner in the gold loan market.