Gold is found almost in every Indian household thus no doubt India is regarded as the largest consumer of this metal. Gold is used for various commercial, investment, and industrial purposes but other than these, gold can also be used in event of an emergency all thanks to the advent of Gold Loan. Gold loans have become one of the most popular types of loan in India . As it comes in handy in event of a financial emergency. Gold loan in recent times has become the easiest and most convenient way of availing of the loan and thereby could be put to use for any purpose. It is indeed the right monetary solution for a large number of people.
A gold loan as the name suggests is the loan granted against the gold articles of the individual. It is a secured loan as the gold articles are pledged as collateral with the lender and are given back to the borrower only when the full loan amount along with the interest rate is paid to the lender. The amount of loan sanctioned against the gold articles, however, varies from one lender to another but in most cases, it is 75 percent of the value of the pledged gold articles.
Earlier jewellers or jewellery shops used to provide money to people against their gold articles but this scenario has now been completely changed as today a large number of banks and NBFs offer gold loans in a more systematic and organized manner. To avail gold loan at an affordable cost, one must know about everything that is to know about the gold loan. These include:
Process of Gold Loan:
The process of availing of the gold loan is one of the most hassle-free processes. To apply for this loan, the individual is required to pledge . Their gold articles along with the required documents to the lenders . Such as banks. The documents required for this loan are basic information. Once the documents are verified and gold articles are evaluated the lender will sanction the loan amount.
Eligibility Criteria:
Anyone can easily apply for a gold loan as there is no restriction on any individual. A gold loan can be availed by Indian residents such as professionals, salaried employees, housewives, farmers, and many more. All one requires for a gold loan is basic documents i.e. KYC and the gold articles. Even an individual with poor credit history can avail of the gold loan . If one has enough gold articles to pledge as collateral with the lender.
Interest Rates:
As gold loans are a secured type of loan. The interest charged on them is thereby low as compared to unsecured loans such as a personal loan. The rate of interest charged also varies from one lender to another and thus one must make a good comparison before choosing from which they want to apply for the gold loan.
Tenure:
The tenure of a gold loan also varies from one lender to other but in most cases. It is between 3 to 12 months. However, the individual can also renew the gold loan tenure as per their needs and requirements. However one must remember to pay the amount on time as default on this will result in loss of their gold articles.
Hence these are some of the important points about the gold loan Mumbai.
