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Posted on Monday November 22nd, 2021

Nowadays, prices of gold have crossed 50,000 for every 10 grams in the country. It is the highest ever price of this precious metal so far. Therefore, it is evident that gold is quite desirable among countrymen whether it’s for wedding purpose, investment or any other reason.

However, pandemic is near to an end but it has adversely affected the economy globally. The expenses are rising and incomes are getting low, so it is difficult for natives to survive in this falling economy. Unfortunately, if any medical emergency arises in a house, the expenses can go up in lakhs. In such a case, Gold Loan is the best solution for you. Hence, we have listed some basics for you to know before you Apply For Gold Loan and to make you understand better.

What type of gold can you pledge for loan?
If you are planning for a gold loan, you can directly pledge your gold jewelry as collateral. The loan amount will be evaluated on the basis of purity of your gold. The one thing to remember is that any bank or NBFC will not accept the gold bars, coins or bullions.

How one can avail gold loan in India?
All you need to have gold and visit the specific lender. Once the lending institution assesses the purity of gold, they will decide upon the loan amount that you can secure. The RBI guidelines strictly mention that the loan quantum cannot exceed 75% of the value of your pledged gold ornaments.

Is your gold secure with the lender?
Everybody is afraid and have a risk factor about pledging their assets when they apply for a gold loan. So, it is advisable to opt a reliable lender for gold loan and beware of an unlicensed financial institution. You can choose ShubhBank as one don’t need to worry about the security of their precious metal.

What kind of papers need to submit for loan?
A gold loan requires very less paperwork as one has to submit some basic documents such as identity proof, residence proof and passport size photograph. The individuals who don’t have a PAN card, they need to submit Form 60.

How much time does gold loan take to process?
Gold loans are one of the fastest loans to get approved either you Apply For Gold Loan Online or offline. If you have all your documents in handy, you can get the loan money disbursed within a few hours.

What repayment options are available for a gold loan?
Gold loan offers an easy and convenient repayment options and one can choose from the following types such as upfront interest, bullet repayment or regular EMIs based on their convenience.

What happens if you default on gold loan?
If you default on loan repayments then keep in mind that lender has every right to auction your pledged gold to recover the outstanding loan amount.

Thus, if you want to apply for the best gold loan, visit ShubhBank to borrow the customized loan solutions for you.