ALL YOU NEED TO KNOW ABOUT GOLD LOANS
Gold Loan
A gold loan simply implies a loan taken against gold. You may deposit gold jewelry, gold coins, and/or gold bars as security with a lending company, and in return, the company shall provide you with the needed loan amount, as per the market value of gold. Gold loans are a type of secured loan, and are pretty easy to apply for. Gold has been one of the most popular precious metals among Indians for generations, and taking up loans against gold has been a financial practice in the country for quite a while. You can acquire a loan through banks and non-banking financial companies (NBFCs).
Documents Needed To Apply For A Gold Loan While the specific documents needed may differ a bit from one lending company to another, the most common gold loan documents include: Gold loan application form duly filed by the borrower Address proof of the borrower Identity Proof/Pan Card/Aadhaar Card
Choosing to take up a gold loan can especially be a smart move when you need a good sum of money on an urgent basis, and have adequate gold ornaments or bullions you are willing to pledge. No CIBIL score or credit history is needed to take a gold loan. Hence, this lending option is well-suited for individuals who have low credit scores, and are facing problems in getting a loan due to it. A typical unsecured loan requires a lot of paperwork and has a lengthy approval process. On the other hand, you would simply need the basic KYC documents to apply for a gold loan, and your loan amount is likely to get approved in a much shorter period of time as well. There usually is no pre-payment penalty or processing fees in case of a gold loan, which invariably reduces the overall cost of the loan.
Advantages of taking up a gold loan
How is EMI calculated on a Gold loan? Typically, the factors taken into consideration when calculating gold loan EMI include: Rate of interest The loan amount Tenure
How to apply for a gold loan? You simply have to get in touch with any reputed financial institution that offers gold loans and subsequently fill up the relevant gold loan application form.
