Gold is a commodity that is very expensive in nature. We all buy gold and the jewelry made of it for investment as well as for self-consumption. It is a great buy on occasions such as marriages and engagements. You can buy gold if you have spare cash. This would help you to make jewelry whenever you wish for it and that too with just some extra investment. India is a land of most consumption for gold. There are many castes in India that gift gold in kilos during their special events. It is an age-old tradition to save gold for your bad periods and you shall sail through it with ease. So, if gold is so important, then why not use it for our immediate cash requirements. You should look at options to mortgage it rather than sell it. Buying gold can be an expensive affair but mortgaging it can be easy. You can mortgage it for the same or lesser value depending on the lender terms and conditions so that you can enjoy the immediate cash requirements. It is easy to fund cash if there is a collateral of the same or higher value. All you need to do is get the collateral
There is a set process for each loan. Gold loan is a much simpler process of all as it has the least possible documentation and needs not much intervention as the collateral is available for the gold loan to be sanctioned. Let us look at the details for it.
The requirements for a gold loan are simple. You need to take the gold that you would like to mortgage for the loan amount. This gold should be of equal or more value for the amount you plan to apply loan for. This is for the safety of the principle amount of the lender. They can sell your gold if there is a continuous miss in the repayments.
The documentation is easy as you need to furnish your general details such as photo id proof and address proof. Your bank statements and income proofs may also be needed as the source of repayment should be confirmed and its authenticity to be checked as well. All this is just to keep the interest of the gold loan alive in the market.
For products like gold loan, there is no upper limit set for individuals to apply. The value of the gold should be equal or more than the loan amount. That is all that matters to the lenders. This is because for any nonpayment, the lender does not face bad debts. They have some guarantee to get the repayment from the borrower in some or the other way. However, they do not sell off the gold in the first instance of nonpayment. They do inform the borrower about the nonpayment and then give them a timeline to repay. This is done on multiple instances and if still there is no response or update, then the old is sold off to get the repayment done.
The lenders get a memorandum to sell the loan in case of nonpayment. This would help them to legally sell the gold without anyone’s consent. The evaluation of the gold is done in-house so that the real worth can be determined. Also, the details are explained to the borrower so that there is no surprise for them at the end. The weight of the gold minus any non-gold products in jewelry are considered while calculating the value of the gold.
Your gold is safe in the hands of the lender. They have a safe deposit vault where your gold is marked under your name and details of the loan. It is kept in the vault and is not touched unless you repay the entire amount, or your gold would need to be sold for recovery. The vault is a safe place for everyone’s gold and belongings. It is under continuous supervision so that no unfortunate events happen.
The lenders also insure the gold value with a good and reputed insurance company so that in case of any issues the value can be recovered and can be handed over to the customers. Such necessary steps are taken by the lenders as they must keep the trust factor imbibed in this loan process.
The loan disbursement can happen within minutes of you stepping into the center. This would not take much time as you would mention the amount of loan you require, and the gold would be evaluated to approve the loan. Once this procedure is done, the paper work is checked, and the loan amount would be disbursed to you in different forms such as cheque or digital methods.
There are many types of gold that are accepted at such gold loan centers. These can be pure gold slabs, gold coins, gold jewelry or any form of gold. The authenticity and the value of the gold is verified, and you can go ahead with the loan procedure.
Usually in loan products, you need to pay some prepayment charges over your outstanding amount. However, you need not pay anything in a gold loan as they are more concerned about the principle amount as the interest is covered in the initial months itself.
You can now check the EMI that would be charged to you on monthly basis upon a fixed loan amount. You can use the gold loan EMI calculator available on Wealth County. The calculation needs three parameters which would help to calculate the EMI. These are the loan amount that you require, the interest rate that would be charged to you and the tenure at which you need the gold loan. Once you enter all these details, your gold loan EMI would be calculated based on the formulas applied by the lenders. It is easy to know how much you would be charged even before you apply for a gold loan. You can plan for your finances in future and know if a gold loan is possible right now or not. You can compare gold loans from almost all banks and financial institutions here at Wealth County and it would help you save some money for the same amount of gold loan you apply for.
Gold loan is considered as a secured loan as it has a collateral available for the lender to be secured. The period is short as compared to other loan products, but the limit is not set so you can take loan for almost any amount you desire. All you need to do is keep the gold ready for that amount or higher depending on the lender and the policies that they follow.
A gold loan is preferred as compared to a personal loan as it is easy to get. There is not much of a headache in getting a gold loan. You just need to approach a bank or a financial institution with the gold you own, and they would give you the money that you need. It has no prepayment charges which makes it cheaper and secured. So, now you can take your immediate cash requirement using this method and a collateral is also not difficult to arrange. The reasons to apply for a gold loan can be many.
If you wish to apply for a gold loan and do not know much about it, you can still do so by visiting the branch of a bank you trust, or a non-banking financial institution also known as NBFC. The representative would explain you all the details of the gold loan and its features, payment structures and the collateral details as well. You can also visit the vault area to see how protected and safe your gold would be with them. You could not be able to enter the vault for security reasons and this is something mandatory for all to follow to keep your gold secured just like others do. If you wish to get your gold loan application done at your home or office, such a facility is now available with the banks and financial institutions. All you need to do is fill up a form on the website and a representative would come to your home or office and get all the necessary paper work done. The gold would be authenticated in front of you and the loan amount would be disclosed. If you have digital methods for bank transfers the amount would be transferred to you immediately or within the timelines mentioned by the representative.
Indians have a lot of interest in the gold products and commodities made from it. They always find a reason to invest into gold so that they can save for their bad times or for their future. Gold is a safe investment and it has been taught to us by our ancestors to invest in it for the better future. You can also make some nice and fancy jewelry for your wife, parents, children or for yourself as well. It is a great sign of you being prosperous and when you are in dire need of funds, it would help you get out of the situation without much hassles. We all need cash to meet our requirements for business or personal reasons. But there is hardly cash available for immediate use. Therefore, gold loan is the best available option for you to use for immediate cash requirements.
The interest rate is also cheaper as compared to any other loan products. It ranges from 8.5% to 15% N an effective basis depending on the tenure. The more the tenure, the expensive your gold loan would be. You should always check the interest rate for any kind of loans including gold loans. This interest is the income of the lender and they would do anything to get a higher rate. However, there is cut throat competition in the market for gold loans or any other loans as well. Therefore, you as a borrower are on the positive end to demand what you desire. But this should be well within limits to be accepted by the lenders. So, make the most of such an arrangement and get rid of your tensions for cash requirements. If you have not yet tried this option then it is time you do to know how convenient it is to get funds as soon as possible.