India is one of the major importers of gold, therefore, a significant number of people own gold ornaments in our country. The concept of keeping gold idle at home has become outdated so now people use this celebrated metal to overcome their emergencies by taking a loan against gold. This service is very fast and hassle-free. The service of Gold Loan helps the applicant to avail a loan against their gold assets. Gold Loan is a secured product in which the applicant has to keep their jewelry as collateral with the bank or NBC’s in return of money as a loan. As soon as the borrower repays the amount of loan provided by the bank, the ornaments are given back to them.
What is Gold Loan?
Gold loan is a service that comes under the category of secured loans; hence, the loan is processed very quickly without any lengthy formalities. Initially, the applicant just has to submit the gold ornaments to the banking authority to avail a loan in return. As soon as the borrower repays the loan amount the ornaments are returned to them. It is noteworthy that the Gold Loan comes with so many features. So let us discuss them one by one.
Gold Loan Features and Benefits Highlights
1. First of all the gold loan is very easy to apply.
2. After that, gold Loan gets disburse within 15 minutes.
3. Furthermore, the interest rates on the gold loan are quite affordable and satisfactory.
4. Besides that, in a gold loan, the documentation process is very easy and simple.
5. Finally, the gold loan required no credit checks.
6. Gold loan is very easy to apply.
7. Gets disbursed within 15 minutes
8. The interest rates on the gold loan are quite affordable and satisfactory.
9. In a gold loan, the documentation process is very easy and simple.
10. The gold loan required no credit checks.
11. The banks/NBFC’s doesn’t take any processing charge for gold loans online.
12. Banks/NBFC’s maintain full transparency process
13. It is a multipurpose loan which one can use for personal or business need.
14. Moreover 100% safety of gold
15. Loans are sanctioned for a variety of purposes to help customers meet their financial needs.
16. The minimum loan amount offered is Rs.10, 000 and is limited to a maximum depends upon your need
17. Customers can prepay the loan at no extra charge.
18. Furthermore, there are three schemes to repay the loan: EMI Scheme, Bullet Repayment Scheme, and Overdraft Scheme
Gold Loan Features and Benefits
1. Easy To Get - First and foremost, Loan against gold is a secured service, therefore the processing of this loan is quick as the bank is mostly concerned with the quality and weight of the gold.
2. Low-Interest Rates - In contrast to services like personal loans, the gold loan has the least interest rate as banks keep security against the loan.
3. No Foreclosure Charges - Generally, banks do not have any prepayment charges but some banks can charge a penalty of just 1%.
4. Safety of Ornaments - The ornaments are more secure with the banks due to the strict security In the banking institutions which are quite less at homes.
5. No Required any Credit Score - As this is a secured loan, therefore, the applicant does not have to worry about bad loan repayment history.
6. Income-proof not required - The salary of an applicant is not an issue for availing a gold loan as it depends majorly on the weight and quality of gold available with the applicant.
7. No loan processing charges - Another advantage is that the applicant does not have to pay extra for this service as the approval solely depends upon the asset kept as security.
8. Flexible tenure - In addition to other advantages, the applicant can choose the tenure of the loan according to their requirements and needs.
9. Only payment of interest - The applicant has the option to pay the principal amount at the end of the tenure and only the interest every month
10. Safety - Of course the security of your Gold Jewelry is more in banks due to the proper security systems, unlike our homes.
11. Fast Process - It is noteworthy, that Gold loan is a type of secured loan, therefore, you can get your gold loan processed in as quick as 30 minutes
12. Overdraft Facility - Furthermore, the applicant has the option of overdraft facility that allows the applicant to enjoy anytime cash flow as per the needs.
13. Low-Interest Rates - After that, another feature is the rate of interest is very less in comparison to other services provided by the banks and NBFC’s
14. No Processing Charges - Furthermore, the bank does not charge any extra cost for applying for a gold loan.
15. Less Documentation – Lastly, the formalities that are to be completed are very less due to the type of service this is.