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FEW MISTAKES TO AVOID WHILE APPLYING FOR A GOLD LOAN

Posted on Monday September 7th, 2020

Gold loans are the convenient and straight forward method of raising the funds in emergency situations. Gold is usually secured in the forms of ornaments and jewelry often comes to the rescue whether you need it for wedding expenses, travelling or starting up a new venture. Many of the banks and NBFCs are in competition to give gold loan with great benefits and you can monetize your yellow metal without selling it in the market. However, many a times people get misguided, therefore needed to look after few mistakes to avoid while applying for a gold loan.

MISTAKES TO AVOID WHILE SECURING A GOLD LOAN
– A major setback proved for the borrower is not to check the lender’s credibility. The loan quantum in gold loan is based upon the fraction of gold that you have pledged to the lending institution resulting in the increased risk factor for borrower than the lender. Therefore, you must check the background of the chosen financial entity as you have to place your gold as collateral to the lender till the time you repay the borrowed amount back. Always choose a well-established lending institution that is regulated by RBI for gold loans.

– The other common mistake made by loan seekers is not comparing the lenders in the market. If you want to compare then you can use any of the aggregator websites as many of the lenders would be ready to give the loan amount evaluated on the basis of your gold. When you Apply For Gold Loan never go for the first offer because more you compare, better the offer you may find. Always choose a lender who offers lower interest rate or higher LTV ratio.

– There is another point that needed to be avoided is being negligent of repayment structure. It is always important to understand the structure and zero in on the best that matches your needs. Be sure about the requisite liquidity and how you are going to repay either in the form of EMIs or bullet payments otherwise you could lose your gold ornaments.

– It is important to get into the finer aspects of loan to value calculation while you Apply For Online Gold Loan or apply it offline. Most of the lending institutions rely on the data furnished by their central office to evaluate the gold and to grant you a loan for up to 70% of its market value. Being a smart borrower, you must have a good idea about the market value of your gold. However, quite often these values are flexible.

At the end, you must check upon the fine print of gold loan as yellow metal has more sentimental value and ensures disciplined repayment from the borrower. Do keep in mind the conditions in which your lender can possess the gold and auction it in case of any default or any prepayment charges if you close the loan before the tenure ends. Make sure to discuss all these aspects to have a safer and convenient loan journey.


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GOLD LOANS – HOW TO PROCEED WITH ONLINE APPLICATION

Posted on Wednesday March 4th, 2020

Gold is one of the best investments in today’s world. It is a vital resource that has an increasing value. One can fulfill their immediate financial needs with gold loans. It is the quickest way to get money for personal or business requirements. With minimum documentation and secure storage, gold loans are a simple funding option to meet your needs. You can get funds instantly against your gold and repay at your convenience. It has become more comfortable now, as you can Apply For Gold Loan Online.

Eligibility
Any person owning gold ornaments can apply for gold loans, only minors (person below 18 years of age) are not eligible. The process of obtaining the loan starts by submitting your gold jewelry within a karat range between 22k to 24k. The loan amount will be sanctioned based on the gold valuation, involving the verification of its purity. The weight of the stones on the jewelry is deducted for an estimate.

Documents Required
You will only need one certificate of identification, such as the ration card, aadhar card, driving license, pan card, voter ID card, or passport. The second essential requirement is an address proof. There are no end-use restrictions on a gold loan. Unlike other investments, there is no need for a Guarantor or an Introducer. Even a bank account is not necessary to get the credit, only if the transaction is less than one lakh. Once these documents have been submitted, the approval is given in minutes, provided all the materials are in order, and are verified. All loan approvals are at the discretion of the branch head of any bank.

Rate of Interest
The base rate of interest is 14 percent, even though it depends on bank to bank. However, an additional interest ranging from 3-12 percent might be charged over the base rate, depending on the loan to value. There are no prepayment penalties. The monthly compounding interest is charged, which is to be paid by the borrower at the specified periodicity or during the closure of the loan. The rate of interest is fixed and is calculated based on a reducing balance.

The loan has to be repaid at the end of the loan tenure. There are no hassles of paying EMIs every month. Only the interest has to be serviced periodically as per the terms and conditions of the sanction. Repayments can be made by cash, cheque, or DD. There are also options for an online refund for online gold loan applicants.

Conclusion
If you are going through a money crunch and have a medical emergency, you can always Apply For Gold Loan. If you have planned a big fat Indian wedding for your child, gold loans are the solution to your monetary problem even then. Gold loans are the most accessible form of financial aid that is available. It is hassle-free and low maintenance. Apply for gold loans online that will make your work easier and quicker.