Posted on Friday June 28th, 2019

Everyone is aware of the fact that Indians love gold. It is mostly purchased on auspicious occasions like festivals and weddings. Every Indian has a nominal amount of yellow metal at his/her disposal. In Indian lending sector, loan against gold is very old tradition. Many people do not opt to take gold loan for many misconceptions and regarding the concept and processing of gold loan but this fear has slowly overcome by the indulgence of so many lending options from various financial institutions in the lending market. There are many factors which you must know before applying for a gold loan. You can get quick money out of your gold from many of banks and NBFCs at special interest rates. If you are having a second thoughts regarding a gold loan, then you can go through some busting famous Myths About Gold Loan that are listed below:

Gold loan is only offered by jewelers: Nowadays many banks and NBFCs offer gold loan with exciting interest rate. More and more people started investing in yellow metal for easy availability of quick funds by mortgaging their gold at banks or NBFCs. Those people who think that only jewelers offer this loan and unsure about legitimacy can apply at bank that assures you in every aspect.

Your ornaments get secretly exchanged: Being a secured loan, you have to keep you gold as collateral with bank or NBFC in order to get funds against it. When you repay the loan in given tenure, then lender will return your gold ornaments. Some people might have thought of lender exchanging their gold ornaments with similar fake ornaments. This is not true as these financial institutions have special security and locker system to protect your collateral. You can relax and trustfully can Apply For a Gold Loan.

High rate of interest: Every lender offers various interest rates as per the loan type. The unsecured types of loans have high rate of interest whereas the secured types of loans have comparatively low rates of interest. Gold loan is a secured loan so banks and NBFCs do not charge high rates on interest on it. The interest rate varies as per the profile of the loan borrower.

No gold loan for old traditional jewelry: Many people have misconception that lenders offer loan only on new ornaments but clearing this myth for you, lenders do offer loan on gold ornaments. The criteria are that gold has to be pure and minimum 18 carat to secure a gold loan.

Loan procedure is time consuming: When it comes to myths about gold loan, this is the biggest hoax of all that gold loan is time consuming procedure. But it is the only loan you can get on spot. If you met all the required criteria’s, lender will approve your gold loan and disburse it in an hour or within a day.

So if you are in need of immediate cash, you should definitely apply for gold loan. Now you are clear about all the myths, so you can easily apply for a gold loan at ShubhBank out of fear.