Are you looking for instant loan options? Want to get rid of debts? Here are the 6 intelligent ways to use your gold jewellery for an instant loan.
As we all know, financial emergencies come anytime, especially when there’s deflation. At such a time, the best option is for a gold loan where you can finish your work swiftly without any hesitation.
But why opt for a gold loan?
Gold is a common commodity in every Indian household. We all use it on an emergency basis, such as medical emergencies, education purposes, wedding expenditures, gadgets, etc.
All the banks provide gold loan options with varied terms and conditions, which makes it simple.
- There is utmost collateral safety of your asset by banks- Gold is a valuable asset, and banks are responsible for securing the gold lenders give and their trust in the bank.
- Easy repayments- Due to several reasons, some cannot pay interest on time, so some banks offer the lenders to choose the time in which they are comfortable to repay the interest.
- Low-interest rates- Banks charge low-interest rates. However, it all depends on the market conditions.
- No extra charges- Some banks don’t charge foreclosure or prepayment charges on the borrowing amount. Processing fees are the most common charges that banks charge.
- A considerable loan amount- For a gold loan, the lender gives 80% of the total amount of gold to the borrower in exchange. One can also determine the maximum gold loan amount on bank websites for the pledged gold.
All these make gold the best viable option in taking an instant loan.
The 6 easy steps are:
- Visit a bank website or visit a bank that you think is best for you. Apply for a loan or can place a direct call for instant communication.
- After applying, one can get loan confirmation from the bank through a message and email.
- The loan manager will then visit the given residential address after the authorization, or if applied offline, you have to visit the bank.
- In the case of online, upon arrival, the loan manager will ask for OTP shared by him for authenticity.
- The loan manager will then check the ISI-certified kit to assess your gold. The final evaluation will then be as per the market value of the gold.
- After approval, the loan manager transfers the final amount to your account, whereas it is either given to them in their hands or their bank account for offline applicants. The commodity is safely transferred to the nearest partner bank for security.
It is that easy but when in a hurry we often forget to check the required documents which indirectly leads to a waste of time and delays. So what is the eligibility of a gold loan, and what all documents does one need? These questions help you pre-plan your loan applications without any hurdles.
The eligibility criteria of applying for a gold loan is:
- Any citizen of 18 years and a maximum of 70 years can apply for a gold loan.
- Most of the banks provide loans to salaried, self-employed people, this includes farmers and traders too.
- Gold jewellery could be of any kind, such as jewellery, coins etc. The minimum purity should be 18 carats and a maximum of 22-24 carats.
The essential documents required for taking a gold loan are:
- Identification proof such as pan card, the voter id, driving licence.
- Address proof such as Aadhar card, rent agreement or electricity bills etc.
- Additional items such as passport-sized photographs etc.
However, several banks have their requirements for documentation. Some might even ask for income tax returns, while some may ask for salary slips, bank statements etc. It all depends on the amount of loan taken by the bank.
The bank always looks for interest rates. Interest rates are a monthly income for them. Everyone gets different interest rates depending on the tenure and loan amount.
We all prefer low-interest rates while opting for any loans. Sometimes while collecting information from various banks, we don’t know the exact interest rates of the particular amount. To know the amount, banks provide Gold loan EMI calculators to calculate the monthly interest.
Here are some gold loan interest rates:
- SBI- 7.50%
- Canada bank- 7.65%
- Bank of Baroda- 7.70%
- Union Bank of India- 7.30%
When we see these banks’ interest rates, they are so competitive. It’s said that gold is such a commodity that indirectly portrays a kind of investment. They have a considerable investment that can further help in needful uses.
In today’s corporate world, everyone competes for more customers and the growth of their business. These banks provide great services along with loans. They differ from bank to bank. To enhance the marketing process, one should keep analysis and abrupt information relating to gold or other loans and investments.